beginner · 3-9 months
Build an Emergency Fund
Set aside enough money to cover a genuine surprise — a job loss, a car repair, a broken boiler — without going into debt.
An emergency fund is money set aside purely for the unexpected. It's not a savings goal for a holiday or a new phone — it's the buffer that keeps a bad week from becoming a bad year. Most guidance points to three to six months of essential expenses, but the right number depends on how stable your income is and who depends on you.