An emergency fund is money set aside for the surprises that always seem to arrive at once: a car repair, a vet bill, a slow month at work. Many guides suggest three to six months of essential expenses. If that number feels impossible, start smaller.
Step 1: Pick a first milestone
A first goal of $500 or $1,000 covers many common surprises and is reachable. Once you get there, raise the target to one month of essentials, then keep going.
Step 2: Keep it separate
Money sitting in your everyday account tends to get spent. A separate savings account, ideally one you don't see every day, makes the fund feel real and harder to dip into.
Step 3: Automate a small amount
Even $10 or $20 per paycheck adds up, and automatic transfers remove the monthly decision. Increase the amount whenever your income goes up or a bill goes away.
Step 4: Add windfalls
Tax refunds, a bonus, cash gifts or money from selling things you no longer use can jump-start the fund. Consider sending part of each windfall straight to savings.
Step 5: Decide what counts as an emergency
Write down your own rule, for example “unexpected, necessary and urgent.” A sale is not an emergency; a broken fridge might be. If you do use the fund, that's what it's for. Just restart the automatic transfer.
Want the math done for you? Savings Goals & Sinking Funds does the adding up in Excel or Google Sheets.
General information for planning, not financial advice.