Let’s talk about how much to save for an emergency fund. How Much Should I Save for My Emergency Fund? Take a hint from them and get started working on your own emergency savings. Our State of Personal Finance Study shows that 60% of Americans have dedicated emergency savings or a rainy-day fund. You need that safety net between you and life. Instead, get this emergency fund squared away. Ready to start saving? Get started with a free trial of Ramsey+ today.ĭon’t let yourself be caught off guard! If you don’t have emergency savings, you’ll be way more tempted to buy into a credit card scheme or loan pitch. You’ll be so thankful you have that emergency money if you suddenly lose your job or get in a fender bender. The reason to have an emergency fund is simple: You don’t know what’s going to happen.

This thing should only be used when there’s a real emergency you need cash to cover.

A BOGO shoe sale isn’t a good reason to dip into your emergency fund, you guys. Now, I’m talking about true emergencies here, like a car accident, a hospital visit or a cracked tooth. But whatever you want to call it, this emergency savings can take care of whatever life tosses your way. Why? Because your emergency fund has your back! What Is an Emergency Fund?Īn emergency fund is simply money you’ve set aside for life’s unexpected events-sometimes people call it a rainy-day fund. Wouldn’t it feel great to have a buffer between you and the curveballs life throws at you-a safety net that helps you sleep soundly because it turns a major life crisis into just a slight inconvenience? Even if your AC goes out in mid-July, you’re cool as can be. But even after all of that, 36% of Americans still say they can’t cover a $400 emergency. Why? Well, because you never know what’s going to come your way (hello, global pandemic). If there’s one thing living through 2020 taught us all, it’s that you definitely need an emergency fund.

Ynab budgeting emergency fund