Prepare for the unexpected with an emergency fund

Define “emergency”

A financial emergency is an unforeseen, unexpected event—not something you’re able to predict, like annual property taxes or a vacation! An emergency fund can provide confidence and help keep your money and well-being in check when something happens. 

Keep it separate

Store your emergency fund in a separate account specifically for your emergency savings, like a high-yield savings account. The funds should be liquid—meaning you can easily withdraw them—but not so accessible that you’d be tempted to use them on a whim. 

Start small

When learning how to start an emergency fund, the first step is to save $1,000. Reaching this initial goal will give you confidence and motivate you to save more. 

Work your way up

Don’t stop after saving $1,000! Continue growing your emergency fund until it’s enough to cover 3 – 6 months’ worth of living expenses. Our emergency fund calculator can help you determine how much you’ll need. 

Save automatically

Make “paying yourself first” a habit by setting up automatic transfers using your banking app or direct deposit. Putting this money aside in your emergency savings account, without having to think about it, can help stop your temptation to spend. 

Spend wisely

Budgeting for your emergency savings and tracking your spending can help you see where your money is going—and cut down on unnecessary purchases. The more you save, the more you contribute to your financial confidence and overall well-being.