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: like car repairs, medical expenses and home repairs.
How much should I have in my emergency fund?
Everyone's situation is different, so you can adjust that number based on your circumstances and expenses. Your expenses may include groceries, credit cards, student loans, home and auto.
3 months of expenses
Aim to cover 3 months of expenses if you have no children or others depending on you financially, or if you have an easy-to-replace job.
6 months of expenses
For most people, you should aim to have enough to cover 6 months of expenses in a readily accessible account.
9 months of expenses
Aim to cover 9 months of expenses if your income fluctuates due to seasonality.
The majority (56 percent) of U.S. adults wouldn’t pay for an emergency expense of $1,000 or more, such as an emergency room visit or unexpected car repair, from their savings account.*
Tips to help you build your buffer
- Start saving even $20/week (that's $1,040 a year) is a great start
- Track your spending wisely. Use our
budget worksheet to help you get started - Use credit wisely
- Curb impulse buying, stick with your list
- Avoid fees like late charges, minimum balance, ATM fees, etc
- Plan ahead for big purchases
- Avoid cash advances
- Use direct deposit
- Jump start your savings with a tax refund or other windfall
Other resources you might find helpful
Advice
In an hour or less, we can review your account and goals for retirement and discuss potential changes that you can make to help meet these goals.
Financial Education
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Webinars
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This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.