Rebuilding Emergency Savings in 2021: Take a Realistic Approach

Saving for a rainy day can be a tall order, especially if you have recently experienced a financial setback. Taking even small steps can help you work toward the larger goal of building up your emergency savings.

Stacks of coins on top of rolled up dollar bills.
(Image credit: Getty Images)

You may have heard that you should have three to six months’ worth of essential living expenses saved in case of emergency. It’s sound guidance — but it might be the last thing you want to hear after a year marked by emergencies.

For many of us, 2020 tested our health, safety, bravery and basic financial stability more than any other period in recent memory. If you didn’t already have money saved for emergencies, last year likely wasn’t the time to start stashing it away. And if you did, it may have been a prime opportunity to dip into your reserve.

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© 2021 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 3442379 03/21


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Krystal Barker Buissereth, CFA®
Head of Financial Wellness, Morgan Stanley

Krystal Barker Buissereth, CFA®, is a Managing Director and the Head of Financial Wellness for Morgan Stanley at Work. In this role, she is responsible for working with corporate clients and organizations on creating, implementing and managing financial wellness programs that meet the needs of their employees.