Emergency Fund Calculator
An emergency fund—or rainy day fund—is one part of a smart personal financial plan. From unexpectedly losing your job to an unplanned appliance replacement, financial surprises are bound to happen. Are you wondering how much to set aside for emergencies? Use our calculator below to determine how much you should have in your emergency fund to handle life’s surprises.
How Much to Save in an Emergency Fund
Financial planners typically suggest having three to six months of living expenses set aside. That’s based on the average time it takes to find a new job. During the 2008 recession, it took much longer, so some advisers are now suggesting more. If you have enough emergency funds to cover six to nine months of living expenses, an unexpected event is less likely to disrupt your long-term financial goals.
How to Start Saving Money
The first step toward saving money is budgeting—if you don’t know where your money is going, you can’t begin to save it. We recommend keeping track of every penny for a month or two, determining what percentage of your income is going toward wants and needs, and then, finding ways to cut back. Check out our budgeting resources for more tips to get started. Once you have a handle on your budget, consider some of our other products to augment your future savings goals.
Dobot Savings App
Dobot is our free savings app that makes it easy to save for what matters most. Give your goal a name, set the dollar amount you’ll need and a deadline to meet, and watch the results.
Fifth Third Rewards Cards
Earn points for the things you buy every day, like gas, dining out and groceries. Then, redeem your points for things you would otherwise spend money on during your time of need. This will free up some cash for your emergency savings fund. Always remember that credit cards can charge interest. So be cautious about overusing your card(s) and adding to your overall debt.
What Type of Account to Use for an Emergency Fund
A rainy day fund should be relatively liquid—meaning you can easily access the money in an emergency. A traditional savings account, high-yield savings account, or money market account could all be good options for your emergency fund. Fifth Third offers a range of savings accounts from traditional to specialized accounts. Find a branch or schedule an appointment to discuss the best option for your situation.
Emergency Fund FAQs
Not having a savings account may not have impacted you yet, but it's only a matter of time until a financial emergency happens and you're left strapped without any money. Saving may seem like it's all for nothing, but putting money away helps to create a financial cushion that you one day may very well need.
Saving money is not just a good habit--it's absolutely necessary. However, when can spending more money be even more powerful than saving it? Learn more from Fifth Third Bank.
While saving $10,000 is a wonderful accomplishment, especially considering today's economic climate, it's crucial that you put your hard-earned cash to good use.
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