Life is unpredictable. An emergency fund is money set aside to cover unexpected financial shocks, like a job loss, medical bill, or major car repair, without derailing your long-term goals.

How Much Should You Save?

A common rule of thumb is to have 3 to 6 months' worth of essential living expenses in your emergency fund. This includes things like rent/mortgage, utilities, food, and transportation. Calculate your monthly expenses to determine your goal.

Where to Keep Your Emergency Fund

Your emergency fund should be liquid and easily accessible, but not so accessible that you're tempted to spend it. A high-yield savings account is an ideal place, as it's separate from your checking account and earns a bit of interest. Use our Budget Manager to track your progress.