War & crisis · US
Emergency fund
Build a cash reserve for job loss, repairs and medical bills, even on a tight budget.
Quick card · Emergency fundSources checked 29 Oct 2026
Before
- Size your fund from the unexpected costs you've actually had: car repairs, home repairs, medical bills, lost income. 1
- Start small and automatic: a recurring transfer, or part of your paycheck through direct deposit. 1
- Put windfalls like tax refunds straight into the fund. 1
- Keep it in a separate bank or credit union account, generally one of the safest places for it. 1
What an emergency fund is
The Consumer Financial Protection Bureau defines it as cash set aside specifically for unplanned expenses or financial emergencies. 1
How much?
The CFPB doesn’t set a fixed target. It says the right amount depends on your situation, and suggests looking at the unexpected costs you’ve faced before and what they cost. 1
Where to keep it
The CFPB lists three options: a separate bank or credit union account, a prepaid card, or cash. Cash at home can be lost, stolen or destroyed, so most people keep the bulk in an account and a small amount of cash in their emergency kit. 1