Steps to establish an emergency fund

Why should you have an emergency fund?

An emergency fund can help give you peace of mind and control over your finances if you were faced with the unexpected. What if your car broke down, or you lost your job? An emergency fund can help you handle those surprises without compromising your finances.

Set a goal

Ultimately, you'll want to have 3-6 months worth of living expenses set aside in your emergency fund. But starting with a smaller goal like $500 dollars can help you avoid unnecessary debt or dipping into your retirement savings.

Make it easy

Be sure to save in a separate account from your daily banking account to help keep the money earmarked for emergencies. You can also set up automated transfers or direct deposit to make it even easier to reach your goal. 

Track your spending

Create a budget to help you understand how much you are spending and where the money is going. Then, look for ways to save even more towards your emergency fund.