Start with essentials
Count what you must pay even if your income stops: housing, food, transportation, utilities, insurance and minimum debt payments. Leave out what you would cancel, like dining out.
Three months or six
Three months of essentials is a common first target. Six suits one income, pay that varies or a family that depends on you. In the example, $2,800 a month makes $8,400 for three months and $16,800 for six.
Close the gap
With $2,000 saved and $400 a month, the three-month fund is full in 16 months. Schedule the deposit for the day after payday, before the money gets spent.
Frequently asked questions
How much should my emergency fund be?
Three to six months of essential costs is a common rule. If that feels far away, start with $500 and build from there.
Where should I keep my emergency fund?
In a savings account you can reach in a day or two, separate from the account you spend from.
Should I pay off debt or build an emergency fund first?
Many people save a small cushion first, then pay down high-interest debt, then finish the fund.
Are my numbers saved?
No. Nothing you type leaves this page.
Further reading
CFPB: Building an emergency fund ↗CFPB: Building your savings ↗Educational examples, not individual financial advice.