Establishing an emergency savings fund now can have a big payoff later. Setting aside emergency savings can help you get by if your home or car needs urgent repairs, as well as in more serious situations such as illness or unemployment. Here’s how to figure out how much you need and how to get started.

Your emergency savings fund should be enough to cover your major expenses for six to nine months. If that seems daunting, you can always start by targeting three months of expenses and build from there. Here are some important expenses to consider when determining how much to save:

Once you know what your emergency fund should cover, the next step is to set up a savings plan to build toward your goal. An easy way to get started is to put any big payments, such as a tax refund or holiday bonus, away as savings. From there, work on a specific monthly savings goal and devote a percentage of every paycheck to savings. It’s a good idea to pay yourself first by establishing automatic transfers into a designated savings account. Automatic savings can go a long way to ensuring strong and steady growth of your emergency fund.

Once you’ve committed to monthly savings, consider the options for where to put your emergency fund:

Whichever savings account or method you choose, make sure you can access your emergency savings fund when you need it so you’re prepared for the unexpected.

The material provided on this website is for informational use only and is not intended for financial or investment advice. Khan Academy assumes no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options. Khan Academy doesn’t provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.