Feed Your Emergency Cushion
Personal Finance · Beginner
Back to Explore Habits
An emergency fund turns a crisis into an inconvenience. Build it gradually and keep it separate from your everyday checking account.
Micro-habits to get started
Small actions of a few minutes to start this habit:
Calculate your target number
Add up one month of essential expenses and multiply by three. That is the target for your emergency cushion.
If three months feels impossible right now, start with a one-month target.
10 minSeparate and name it
Open a separate savings account and name it 'Emergency Fund'.
Money with a clear name is respected far more than money mixed in checking.
10 minTransfer as soon as your paycheck lands
Schedule an automatic fixed transfer to your emergency fund on payday.
If you ever have to use it, your top goal the following month is to replenish it.
5 min