An emergency fund is money you hope never to touch. It is there for the broken geyser, the car repair or the month between jobs.
How much?
The usual advice is three to six months of expenses. That number can feel impossible, so start smaller: one month of your needs. Once you have that, most surprises stop being disasters.
Where to keep it
Somewhere you can reach in a day or two, but not with a tap of your card. A separate savings account with a different bank works well, because moving the money takes a small effort.
How to build it
- Save a fixed amount every payday, before you spend.
- Put any bonus or tax refund straight in.
- When you use it, refill it before saving for anything else.