Guides / Emergency fund
What an emergency fund is (and isn't)
Money set aside for the unexpected, kept separate and easy to reach.
An emergency fund is cash you keep for true surprises: a job loss, an urgent medical bill, a car that won't start. It's what keeps a bad week from becoming credit card debt.
What it's for
- Loss of income
- Urgent medical, dental or veterinary costs
- Essential car or home repairs you couldn't plan for
- Emergency travel for family
What it isn't for
- Bills that come every year, like insurance premiums or holidays (those belong in sinking funds)
- Sales and treats
- Investing
Three rules
- Keep it separate from everyday checking
- Keep it safe and easy to reach within a day or two
- Refill it after you use it
General educational information, not financial advice. Stretching Funds Today isn't paid by any bank or company.