BET Lesson 7 of 11 · 5 min read
Build an emergency fund
A cushion for surprises is the foundation of every budget. Start with a small goal and grow it.
Why it comes first
Car repairs, medical bills and job changes happen to everyone. Without savings, a surprise often ends up on a credit card or as a late payment, and the cost grows. An emergency fund turns a crisis into an inconvenience.
How much to save
- Start small: the Consumer Financial Protection Bureau suggests $500 as a first goal.
- Then grow it: many sources recommend 3 to 6 months of essential expenses or income.
- The FDIC suggests working toward at least six months of living expenses.
To pick a first target, think about the surprises you’ve actually had in the past few years, like a car repair or a dental bill, and what they cost.
| Save each week | $20 |
| Weeks to reach $500 | 25 (about 6 months) |
Even a few dollars a month helps you get started.
Where to keep it
Keep it somewhere safe and easy to reach, but separate from your everyday spending. A separate savings account at a federally insured bank or credit union is generally one of the safest places, and keeping it out of your checking account makes it less tempting to spend.
Remember
- Start with $500, then build toward 3–6 months of essentials.
- Keep it in a separate, federally insured savings account.
- Automate it: a small transfer every payday adds up.
Make savings a line in your budget
In BET, add a recurring “Emergency savings” entry on payday so it’s planned like any other bill.
Sign in with Google to try itSources and further reading
- Building your savings? Start with small goals (Consumer Financial Protection Bureau)
- An essential guide to building an emergency fund (Consumer Financial Protection Bureau)
- Start an emergency fund before disaster strikes (University of Minnesota Extension)
- Saving for the Unexpected and Your Future (FDIC)
- Starting Small Can Lead to Big Savings (FDIC)
- Save and Invest (MyMoney.gov)