Emergency Fund Essentials: How Much to Save & Where to Keep It

An emergency fund is your financial cushion against life's uncertainties — unexpected bills, medical costs, or sudden job loss. It gives peace of mind and protects you from high-interest debt. At SaveOurSavings.org, you’ll find detailed guidance on how to build and manage your fund.

How Much Should You Save?

A general rule is 3 to 6 months of essential living expenses. If your income is less stable or you have dependents, consider targeting 6–12 months.

Where to Store It

Your emergency fund should be liquid and accessible. Ideal options include high-yield savings accounts, money market accounts, or short-term CDs that allow withdrawals without penalties.

Build It Gradually

Allocate a portion of every paycheck to your fund. Even $20 or small percentages add up. Use windfalls or bonuses to accelerate the growth. Avoid tapping it except for true emergencies.

Test & Maintain Your Buffer

Review your emergency fund annually. Adjust for inflation, changes in expenses or lifestyle, or new risk factors (e.g. larger household, debt increases). Replenish after any large withdrawal without delay.

To get templates, milestone trackers, and step-by-step plans for building your emergency fund, visit SaveOurSavings.org — protecting your savings starts with the right plan.