Build an Emergency Fund
3–6 months of expenses in savings. The difference between a setback and a catastrophe.
67% of Americans can't cover a $1,000 emergency without going into debt. Don't be that statistic.
Scenarios
The Flat Tire That Shouldn't Be a Crisis
Your tire blows out on the highway. Tow truck: $120. New tire: $180. Total: $300. You have $47 in your checking account and $400 on your credit card limit remaining. You have no emergency fund.
Laid Off. Now What?
You got laid off today. You have $200 in savings, $1,800/month in expenses, and about 6 weeks of runway on credit cards before you're in real trouble. You had a job offer 3 months ago you turned down for this job.
Building the Fund on $28k/Year
You make $28,000/year ($1,950/month after taxes). Rent is $875. After rent, utilities, food, and transportation, you have maybe $200-300 left. Everyone says to build an emergency fund but it feels impossible at your income level.