An emergency fund is a financial safety net for unexpected expenses like medical bills, car repairs or job loss.
Experts suggest saving at least three to six months’ worth of essential expenses — or more if you have dependents.
Start small: Track your spending, trim where you can and use a high-yield savings account to grow your fund faster.
The furnace gives out in the middle of the winter. Your dog swallows something weird. A client disappears without paying.
These aren’t just stressful moments — they’re the kinds of everyday emergencies that can derail your entire budget. But imagine this: Instead of panicking, you reach for your savings. No debt. No scrambling. Just a little financial cushion to keep you steady. That’s the power of an emergency fund. It’s a personal safety net designed to help you weather the unexpected without going into crisis mode.
Don’t make the mistake of thinking emergency funds are just for people with smaller budgets. Even if you’ve got plenty of resources, having an emergency fund is key for peace of mind—whether it’s for unexpected property damage, medical bills, or other surprises. And honestly, the more you have, the more you may want to put aside.
No matter what your income looks like, it’s easy for your paycheck to be fully committed – between mortgage payments, travel plans, investments and everyday expenses. According to the U.S. Federal Reserve, about 54 percent of U.S. adults have three months’ worth of expenses saved in an emergency fund. And while that number rises with age and income, unexpected events can impact anyone.
The good news? You don’t need to overhaul your finances to start building a meaningful safety net. With a few intentional steps, you can strengthen your financial foundation and gain peace of mind. Here’s how to build or boost your emergency fund – no matter what your starting point.
The standard advice is to stash away three to six months’ worth of expenses for an emergency. But let’s get real: saving that much can sound downright impossible if you’ve got a lot of expenses.
Luckily, building an emergency fund isn’t about hitting a magic number overnight. It’s about working toward a goal that works for your life and your current financial reality.
“Any contribution to your emergency savings that you don’t touch is still progress.”
If six months feels out of reach, start smaller. Could you set aside $100? Enough to cover a surprise vet bill or a copay at the doctor’s office? Even having $500 tucked away can make a big difference in a pinch. Your initial goal might be one month’s worth of essential expenses — just enough to give you breathing room if something unexpected comes up.
However, if you have children or are supporting more people than just yourself, you may want your target number to be higher than the standard — enough to cover nine to 12 months. If you have people depending on you, having roughly a year’s worth of wages saved can be a game changer.
Before you can build your emergency fund, you need to know what you’re working with. That means getting a clear, honest picture of your monthly earnings and spending — not just what you think you spend.
Many people build their emergency fund by guessing instead of looking at the hard numbers. But when it comes to preparing for the unexpected, guesswork doesn’t cut it.
Once you have that data, go through and highlight your non-negotiables: rent or mortgage, utilities, groceries, your phone bill, transportation, minimum debt payments. Subtract that total from your monthly income. Now you’ve got a better sense of your financial baseline — and how much of what’s left over you can reasonably put toward an emergency fund.
The next step is to decide how much you’d like to have in your emergency fund and create a plan for getting there.
That target number will look different for everyone, depending on your income, responsibilities and lifestyle. The important part? Start with a realistic goal and break it down into manageable pieces.
A good rule of thumb is to save 10 percent of your monthly income. But if that doesn’t seem doable, try starting with just 2.5 percent to 5 percent. Any contribution to your emergency savings that you don’t touch is still progress.
Once you’ve landed on a monthly or weekly amount that feels sustainable, give yourself a loose timeline. For example: “I want to save $500 in six months,” or “I’ll set aside $25 from every paycheck.” Hitting those milestones — no matter how small — builds confidence and momentum. And that momentum makes it easier to keep going.
Now, get saving!
Look for an account that offers a robust interest rate. For example, earn an interest rate bump when you pair your U.S. Bank Smartly® Savings account with a U.S. Bank Smartly® Checking account, Safe Debit account, or a Smartly™ Visa Signature® Card.1
To make savings easier, set up automatic transfers to your savings account from your checking account — either weekly, biweekly, monthly or using whatever cadence works best for your cash flow.
Another smart move? Direct deposits. Many employers allow you to split your paycheck between multiple accounts. You can assign a fixed dollar amount or a percentage to each account, helping you drive multiple financial goals at once.
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Editor’s Note: The content of this article is accurate as of publication on July 24, 2025, and may have changed. For the latest product information, refer to the U.S. Bank Smartly™ Savings product page.
1. The interest rates and Annual Percentage Yields (APYs) for the U.S. Bank Smartly® Savings account are variable, determined at the bank’s discretion, and can change at any time, including after the account is opened. A minimum opening deposit of $25 is required to open.
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