Emergency Fund
Savings set aside to cover unexpected expenses or a loss of income, typically three to six months of costs.
What does emergency fund mean?
Kept in a liquid, accessible account, an emergency fund prevents a surprise — a job loss, medical bill or car repair — from forcing you into high-interest debt. It’s the foundation of a stable financial plan.
Emergency Fund — frequently asked
How much should I keep in an emergency fund?
Aim for three to six months of essential expenses. Dual-income households or stable jobs can lean toward three; single earners, variable income, or sole breadwinners should target six months or more.
Where should I keep my emergency fund?
In a liquid, safe account you can reach instantly — a high-yield savings or money-market account. The goal is availability and stability, not return, so avoid stocks or anything that could drop right when you need it.