How much should my emergency fund be?
A common target is three to six months of the bills you can't skip.
A common target is three to six months of the bills you can't skip: rent, utilities, groceries, insurance, transportation and minimum debt payments. That can feel huge, so start with a starter fund of $500 to $1,000. It covers most surprise car repairs and doctor bills, and keeps a small emergency from landing on a credit card.
If your income changes a lot from month to month, or you're the only earner at home, aim for the higher end.
Tips that make saving stick
Save first, on payday, before you have a chance to spend it.
Make it automatic
Set up an automatic transfer for the day your paycheck lands, or ask your employer to split your direct deposit. Money you never see in checking is much easier to leave alone.
Give it its own account
Keep savings in a separate account, ideally a high-yield savings account that's FDIC or NCUA insured. Many online banks pay several times more interest than a regular savings account and have no monthly fees.
Start small, then raise it
Even $10 a paycheck builds the habit. When you get a raise or pay off a bill, move part of that money into savings right away.
How we figure the numbers
We count the paychecks between now and your date, and add interest each pay period.
We count the paychecks between now and your goal date based on how often you're paid, then find the amount that, saved every payday, reaches your goal. Interest is added each pay period using your APY, converted to a per-period rate. Rates on savings accounts can change at any time, so treat interest as a bonus rather than part of the plan.
"Per month" is the per-paycheck amount times your paychecks per year, divided by 12. Paid every two weeks? Two months a year have three paydays.
Sources
2 sources
Last checked October 2026.
- Consumer Financial Protection Bureau · An essential guide to building an emergency fund
- FDIC · How deposit insurance protects your savings