Starter guide to emergency funds

Why an emergency fund matters

An emergency fund is money set aside for surprises - a car repair, a medical bill, or a gap between paychecks. It keeps one hard week from turning into debt.

Start small, start now

• Open a separate savings account so the money is out of sight.
• Pick an amount you won't miss - even $5 or $10 a week counts.
• Automate it if you can, so it moves before you can spend it.

Set a first target

Aim for $500 to start. That covers most small emergencies. Once you hit it, keep going toward one month of expenses.

Keep it going

• Save any windfall - a tax refund, a bonus, or birthday money.
• When you use the fund, rebuild it as soon as you can.
• Celebrate every milestone. Progress is progress.