They also canbe really expensive.
That is, if you dont have an emergency fund in place.
What Is an Emergency Fund?
We update our list ofthe best high-yield savings accountsevery month. Check back regularly to find out which ones put your money to work the hardest.
Having an emergency fund should be among your top financial goals if you dont currently have one.
Heres how to get started.
If you oughta boost your emergency savings, it may be time to branch out for some extra money.
Some of our favorite ways to make quick cash can help get you started.
That doesnt necessarily mean you need a minimum of triple your monthly household income.
This doesnt include what you spend dining out or on clothes or on cable.
Those things can be easily eliminated if you had to drop down to abare-bones budgetafter a job loss.
You dont need a fancy emergency fund calculator to determine the amount you should have for your emergency savings.
Simply take the total of your monthly essential expenses and multiply it by three.
If youre able to save for six months instead of three, even better.
Focus on saving $500 and build from there to eventually reach your emergency fund goal.
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While investing your savings could help it grow, you dont want to risk losing your emergency funds.
A high-yield savings account typically has a higher interest rate than regular savings accounts.
So do money market accounts.
Stashing your cash in a checking account is another option, though most wont earn you as much interest.
confirm you store your emergency fund in an account where you wont be tempted to spend the money.
Starting balance
Monthly contribution
Length of time
Months
Years
Annual interest rate
3.
When you dont see the money in your main checking account, you wont be tempted to spend it.
Or you could increase your income by taking on aside hustleor working asecond, part-time job.
Crash with friends for a week andrent out your home on Airbnb.
Transfer work bonuses and your income tax refund over to your rainy day fund before you spend a dime.
Set up separatesinking fundsfor those savings goals instead.
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