💡 Emergency Fund Planning Tips – Build a Financial Cushion

Why an Emergency Fund Matters

• Covers unexpected expenses like car repairs or medical bills.
• Prevents debt accumulation during financial shocks.

How Much to Save

• Aim for 3–6 months of living expenses.
• Start small—$500 or $1,000 is a good initial goal.

Where to Keep It

• Use a high-yield savings account for easy access.
• Avoid investing in stocks for your emergency fund—market swings can delay access.

Tips for Building Quickly

• Automate transfers from checking to savings.
• Use windfalls (tax refunds, bonuses) to grow the fund.
• Cut non-essential spending temporarily.