Emergency Fund 101: How Much You Need and Where to Keep It in 2025
Learn how to build the perfect emergency fund for your lifestyle in 2025 — including how much to save, where to keep it, and when to use it.
What Is an Emergency Fund?
A cash reserve for life’s unexpected events — from job loss to car repairs.
How Much to Save
- $500 to start
- $1,000 for basic safety
- 3–6 months of expenses for full coverage
Where to Keep It
- High-Yield Savings Accounts
- FDIC-Insured Online Banks
- Money Market Accounts
When to Use It
Only for real emergencies: medical bills, job loss, urgent home or car repairs.
Rebuilding After Use
Focus on small automated deposits. Rebuild slowly but consistently.
“It’s not if an emergency will happen — it’s when.”
