Know what the fund is for
An emergency fund is money set aside for unexpected costs or an interruption to income. Keeping it distinct from money for planned purchases makes its purpose easier to remember.
Estimate your essential expenses
List the costs you would still need to cover if income stopped, including housing, food, transport and existing commitments. MoneySense uses three to six months of expenses as a general emergency-fund guideline. Your circumstances may call for a different amount.
Build it into your routine
Choose a manageable contribution and revisit it when your income or commitments change. Record withdrawals and make a plan to rebuild the buffer. An emergency fund is preparation for uncertainty, rather than a guarantee that every future expense will be covered.
Further reading
General information only. Review your circumstances and the provider’s actual terms before deciding to borrow. Approval and terms depend on lender assessment.