Building an emergency fund for your household

by Carol McCullough Relocation Certified 04/14/2024

Building an emergency fund is a crucial step in establishing financial security for your household. Like it or not, we all encounter unexpected expenses, whether they be from an appliance breaking or major lifestyle changes. Here are some tips to help you get started and build an emergency fund:

Set a savings goal

Determine how much money you would like to save for your emergency fund. It is generally recommended to aim for three to six months' worth of living expenses. This will provide a cushion to handle unexpected financial emergencies.

Make it automatic

Set up an automatic transfer from your checking account to a separate savings account for your emergency fund. Automating the process ensures that the money is consistently saved without relying on willpower alone.

Start small & and be consistent

If saving a large sum seems overwhelming, start with small contributions and gradually increase them over time. Consistency is key. Even saving a small amount regularly can add up over time.

Save windfalls & extra income

Whenever you receive unexpected income, such as a tax refund, a bonus, or a gift, consider putting a portion or all of it into your emergency fund. It's a great way to boost your savings without impacting your regular budget.

Keep it separate

Maintain your emergency fund in a separate savings account, preferably one that is not easily accessible for day-to-day spending. Keeping it separate will reduce the temptation to dip into the funds for non-emergency purposes.

Remember, building an emergency fund takes time and discipline. Stay committed to your savings goals, be patient, and celebrate each milestone along the way.

About the Author

Carol McCullough Relocation Certified

As a Fairfield resident with a family commuting daily on Metro North, and our children graduating from Fairfield public schools, I look forward to sharing many of the great attractions in a wonderful community and county! Over the past 18 years with Berkshire Hathaway Home Services New England Properties, I have helped hundreds of buyers and sellers compete their home search and close on the sale of their property. As a Certified Relocation Specialist, my production results rank in the top 4% nationally while delivering exceptional customer service to my clients and their welcomed referrals. Real Estate is one of the most exciting investments you can make. It should be a fun and rewarding experience. Confident with your home marketing decisions and comfortable with the home marketing process is my commitment to you! I am excited to share several new marketing strategies successfully implemented in Southern Fairfield County! Regardless if you are looking to buy, or about to list your current home, you will soon BE AT HOME when working with Carol! *Connecticut Magazine 2022 Award Winner- 12th consecutive year scoring highest in overall customer satisfaction.