1. Key points

  • Keep it somewhere safe and easy to reach, like an FDIC-insured savings account.
  • Starting small and automatic is more realistic than waiting for a big lump sum.
  • Many people aim for several months of essential expenses over time.
  • An emergency fund helps avoid high-cost borrowing like payday loans.

2. Getting started

Set up an automatic transfer on payday, even a small amount, and save windfalls like tax refunds. The CFPB offers worksheets for setting a savings goal.