What’s in your emergency fund?

January 31, 2023

Learn how to find your starting point for your “in case of emergency” savings.

 

When it comes to money, you have a lot on your plate. There’s ­finding a job that pays, sorting out your bills, creating a budget and saving for the future. Even with all those balls in the air, it's also wise to consider adding a key ­financial tool, if you can: an emergency fund.

 

Why build an emergency fund?

Think about what you can use earmarked funds for: paying a medical expense, losing your job or covering a roommate’s rent if they unexpectedly move out.

Not having enough money saved to cover an emergency can snowball:

  • Unpaid bills could potentially harm your credit 
  • Charging an expense you cannot pay off may lead to costly credit card debt 
  • Redirecting funds to an emergency could negatively impact other financial goals such as planning for an upcoming trip or building your retirement savings

 

How much should I save?

Expert advice suggests saving a range of three months to nine months worth of your total monthly expenses, based on your circumstances.

Consider: Do you have any of the following?

  • Kids
  • Pets
  • Student loan payments
  • Car payments
  • A mortgage
  • Insurance premiums
     

Start with a goal of three months and think about boosting your savings target for each item you check mark. You want to make sure you have enough saved that you can still provide for yourself (and others) and meet obligations.

 

What to do if that seems impossible

Start by:

  • Creating a budget
  • Cutting back on expenses such as dining out and entertainment 
  • Looking for sources of extra income like freelance work
  • Putting away a small portion of your paycheck each month into a savings account. A little can add up a lot!

 

What to do in an emergency

Even if you haven’t hit your savings goal, you can still prepare for emergencies.

If you lose your job:

  • Could you pick up part-time work?
  • Get a roommate?
     

If you must unexpectedly pay a large bill:

  • Could you ask for a payment plan?
  • Could you consider a low-interest credit card?
     

You don’t have to wait to prepare for the unexpected. Getting a grip on your finances and having an emergency fund savings plan based on what’s feasible can be your starting point.

 

Find the right U.S. Bank savings account option for building your emergency fund.

Related content

What to do with your tax refund or bonus

Essential financial resources and protections for military families

How to plan and save for adoption and in vitro fertility treatment costs

Building confidence in your finances and career

What applying for store credit card on impulse could mean

Overcoming high interest rates: Getting your homeownership goals back on track

3 ways to keep costs down at the grocery store (and make meal planning fun)

5 things to consider when deciding to take an unplanned trip

Certificates of deposit: How they work to grow your money

How having savings gives you peace of mind

Make holiday gift giving easier in a digital world

Stay committed to your goals by creating positive habits

A who’s who at your local bank

What financial advice would you give your younger self?

Managing money as a military spouse during deployment

Dear Money Mentor: How do I pick a savings or checking account?

Managing your finances in the military

9 simple ways to save

3 awkward situations Zelle can help avoid

Is raising backyard chickens a good idea financially?

Here’s how to create a budget for yourself

Real world advice: How parents are teaching their kids about money

Money Moments: How to manage your finances after a divorce

A passion for fashion: How this student works the gig economy

Helpful tips for safe and smart charitable giving

Money Moments: 8 dos and don’ts for saving money in your 30s

Tips and resources to help in the aftermath of a natural disaster

Tips to raise financially healthy kids at every age

Travel for less: Smart (not cheap) ways to spend less on your next trip

Understanding guardianship and power of attorney in banking

Should you buy now, pay later?

What’s in your emergency fund?

What you need to know about renting

LGBTQ+ financial planning tips

Should I itemize my taxes?

Your 5-step guide to financial planning

Allowance basics for parents and kids

What’s your financial IQ? Game-night edition

Loud budgeting explained: Amplify your money talk

How to set financial goals you will keep

Get back on track with your New Year’s financial resolutions

Checking and savings smarts: Make your accounts work harder for you

5 reasons why couples may have separate bank accounts

Common unexpected expenses and three ways to pay for them

It's possible: 7 tips for breaking the spending cycle

Myths vs. facts about savings account interest rates

Live your money values in 2024

How to request a credit limit increase

Multiple accounts can make it easier to follow a monthly budget

Is it time to get a shared bank account with your partner?

Don’t underestimate the importance of balancing your checking account

How I saved $10,000 in just one year

How to save more money in 2024

How new parents can prepare for the costs of a new child

How to Adult: 5 ways to track your spending

Which is better: Combining bank accounts before marriage — or after?

5 tips for parents opening a bank account for kids

6 questions students should ask about checking accounts

Steer clear of overdrafts to your checking account

30-day adulting challenge: Financial wellness tasks to complete in a month

5 ways to maximize your garage sale profits 

7 steps to prepare for the high cost of child care

How I did it: Transitioned from the military to a private sector career

How to Adult: 7 tax terms and concepts you should know

Webinar: Uncover the cost: Starting a family

What you need to know as the executor of an estate

When your spouse has passed away: A three-month financial checklist

What documents do you need after a loved one dies?

How does money influence your planning?

College budgeting: When to save and splurge

Four ways to make a strong resume for your first real job

Helping Gen Z build financial confidence

Short- and Long-Term Financial Goals for Every Life Stage

How your taxes can change after a major life event

Financial goals for 2024 a 12-month planning guide

How to save for a dream vacation

Tips for talking about money when friends earn more

Pros and cons of a personal line credit

3 tips for saving money when moving to a new home

What is a Certificate of Deposit? And what to know before opening an account

What does FDIC mean?  

3 financial tools to help automate your finances

5 tips for creating (and sticking to) a holiday budget

Financial checklist: Preparing for military deployment

How to financially prepare for a military PCS

Planning self-care moments that matter (and how to finance them)

Growing your savings by going on a ‘money hunt’

Working with an accountability partner can help you reach your goals

The banking app you need as a new parent

Why a mobile banking app is a ‘must have’ for your next vacation

How to decide when to shop local and when to shop online

Your guide to starting a job: Resources to help along the way

5 myths about emergency funds

Does your savings plan match your lifestyle?

Mobile banking tips for smarter and safer online banking

Uncover the cost: Wedding

Uncover the cost: International trip

Are savings bonds still a thing?

Tips to overcome three common savings hurdles

Adulting 101: How to make a budget plan

Personal loans first-timer's guide: 7 questions to ask

Mindset Matters: How to practice mindful spending

How and when to ask for a raise

How can I help my student manage money?

How to manage money in the military: A veteran weighs in

Things to know about the Servicemembers Civil Relief Act

You can take these 18 budgeting tips straight to the bank

3 tips for saving money easily

Save time and money with automatic bill pay

How to best handle unexpected expenses

Stay on budget — and on the go — with a mobile banking app

Do you and your fiancé have compatible financial goals?

U.S. Bank asks: Transitioning out of college life? What’s next?

U.S. Bank asks: Do you know your finances?

U.S. Bank asks: Do you know what an overdraft is?

Personal finance for teens can empower your child

How to save for a wedding

How compound interest works

Dear Money Mentor: How do I set and track financial goals?

Lost job finance tips: What to do when you lose your job

Money Moments: 3 smart financial strategies when caring for aging parents

Money management guide to financial independence

First-timer’s guide to savings account alternatives

7 financial questions to consider when changing jobs

5 tips to use your credit card wisely and steer clear of debt

Money Moments: 3 tips for planning an extended leave of absence

Overdrafts happen: Steps to get you back on track

P2P payments make it easier to split the tab

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

How to increase your savings

Bank from home with these digital features

Military finance: How to create a family budget after military service

Discovering your money personality can help you save

Tips on how couples can learn to agree about money

How to sell and buy a home at the same time

First-time homebuyer’s guide to getting a mortgage

How I decided that buying an RV was worth it for me

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.