For families, and especially for anyone paid by the load, by the job or on 1099 income, money in reserve is what keeps a bad month from becoming a bad year.
Set the target
Add up the essentials for one month: housing, utilities, food, insurance, transportation and minimum debt payments. Many people aim for three to six months of essentials; more if income is irregular.
Make it automatic
Pick a monthly amount you can keep up, and move it on payday to a separate savings account before anything else.
Use it for emergencies only
When you use it, rebuild it before going back to other goals.
Our household emergency fund planner shows the target and how long it takes to get there.
General information, not financial advice.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
