Building an emergency fund: How much should I save?

Why have an emergency fund?

An emergency fund is like the fire extinguisher you keep at home. You hope you’ll never have to use it—but when there’s a need, you’re glad it’s there.
You may need your emergency fund if the unexpected happens:
An emergency fund may be needed for car or home repairs, medical expenses, unexpected tax bills or travel, or in the event of job loss.

How much should I have in my emergency fund?

Aim to have enough in a savings account to cover 6 months of expenses. Everyone’s situation is different, so you can adjust that number based on your circumstances.

These are your monthly expenses:

Aim to have enough saved to cover 6 months of expenses. You may decide to save more or less depending on your personal situation.

Tips to help you build your buffer

Saving even $20/week (that’s $1,040 a year) is a great start.
Use credit wisely
Use credit wisely
Track your spending to be aware of what you have
Track your spending to be aware of what you have
Curb impulse buying—stick with your list
Curb impulse buying—stick with your list
Avoid fees (late charges, minimum balance, ATM fees, etc.)
Avoid fees (late charges, minimum balance, ATM fees, etc.)
Plan ahead for big purchases
Plan ahead for big purchases
Avoid cash advances
Avoid cash advances
Use direct deposit
Use direct deposit
Jump start your savings with a tax refund or other windfall
Jump start your savings with a tax refund or other windfall
Take action

How to get started

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This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.
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