Start an Emergency Fund

Why do I need an emergency fund?

An emergency fund is key to achieving financial stability and independence. Whether it’s a car repair, medical costs, traveling to see a sick family member or unexpected unemployment, emergencies can happen to anyone. By deciding how much you need to save and for how long, you can build the financial cushion you need to weather the storm. Ideally, you would want to have around $500 or 3-6 months’ worth of living expenses in an emergency fund. It can be challenging to save, so starting small is a great way to build up your savings.

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There are many ways to save for an emergency fund, whether or not you have extra income.

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Take it step by step and think about your money goals.  

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Below are some ways to save: 

• Calculate how much you want to save monthly and in total. 
• Put aside a small amount of money every month in a savings account. Even saving $5-100 a month can make a difference.
• Use your tax credit refund money to jumpstart your savings.
• Identify what you’re saving for, and let that goal motivate you to put money aside. For many, the goal of saving for an emergency fund is to avoid debt and stay financially secure.
• Decide if you feel comfortable putting away cash or deposit money into a bank account. A bank account can increase your savings with interest. 

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Download a money-saving app to help with tracking and saving 

• Oportun 
• Qapital

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Knowledge Check

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Remember, building savings takes time and effort, but it's worth it. By taking control of your finances and building an emergency fund, you can build a more secure future for yourself and your family.