A sound financial plan begins with stashing a pile of cash that you can tap in case of an emergency. Experts differ on how much you need to set aside, from as little as three months’ worth to as much as a year’s worth of living expenses. How much you need may depend on your personal profile.
Now, HelloWallet, a developer of personal finance software, has created a tool that can help you nail down the amount that’s right for you. At www.hellowallet.com/emergencysavings, you’ll enter information including your take-home pay, regular monthly expenses, whether you rent or own your home, and your health insurance policy’s annual deductible and out-of-pocket maximum. The tool then estimates the amount of easily accessible savings you should have in the event of a minor emergency, a major emergency or a layoff from work. Starting from the ground up? You can use each figure as an incremental goal toward building your emergency fund. To track your regular monthly expenses, use a budgeting site such as Mint.com so you can link your bank, credit card and other financial accounts.
The best place to keep your emergency fund is in a savings or money market deposit account with a high yield and no monthly fee or minimum-balance requirement. (Watch out for fees for leaving the account inactive.) GE Capital Bank, My Savings Direct and Synchrony Bank offer accounts that yield 1.05% without minimum-balance requirements or fees (Synchrony will charge you $5 a month if your balance drops below $30). The trick to successful saving is to pay yourself first; schedule automatic transfers into savings from your checking account after each paycheck arrives.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
