Step #1: Set a Goal
You’ve got to start somewhere. Make that ‘somewhere’ here. Learn why emergency funds are must-haves. Then take the quiz to find out how much money should be in yours.
Emergency funds are your best financial friend. Here’s how to start working on yours.
Somewhere between 3-9 months' worth of take-home pay. We'll help you narrow it down.
Step #2: Talk the Talk
Speaking the 'emergency savings' language is part of the fun(d). Brush up on the top terms you need to know here.
A savings account just for surprise expenses. Think: losing your job or a surprise vet bill. Teeth-whitening and a last-minute bachelorette party invite not included. Experts recommend saving three to six months’ worth of take-home pay. Side effects include sleeping like a baby.
A popular budgeting framework that breaks down your paycheck like this: 50% goes toward basic needs (housing, groceries, transportation), 20% to saving and investing, and 30% for wants (Netflix, happy hours, haircuts).
Step #3: Make a Plan
You know the why. Now find out where and how to save for emergencies. Game face, on.
- How to ‘50/20/30’ Your Budget
Your needs, wants, and future goals are all accounted for here.
- Where to Put Your Emergency Savings
You've got some options. Hint: It's not in your checking account.
- theSkimm on How to Save More Money, Faster
Science has a few ideas on how to supercharge your savings.
- How to Save for Emergencies While Paying Off Debt
Get your step-by-step plan here.