NBSB’s Advice for Starting and Building an Emergency Fund

Life can be unpredictable and it’s important to be prepared financially for when the unexpected happens. From car accidents and unforeseen repairs, emergency room and doctors’ visits, to becoming unemployed, these surprises can make your finances take a hit. With an emergency fund, you have the security and peace of mind knowing that you can afford what life throws at you.

Having a savings account for an emergency fund can help you avoid borrowing and keep you from having to take on any debt, an especially important thing if you already have debt like credit card bills or student loans.

So how much should you keep in an emergency fund? The dollar amount will vary depending on your expenses but the general rule is 3 to 6 months’ worth of your expenses. This includes things like rent, groceries, utilities, car payments, and any other recurring monthly expenditure.

Building an emergency fund can seem daunting but with these steps you can begin your journey to financial security.


  1. Make a Budget

Creating a budget is one of the best financial things you can do. Setting a budget that takes into account all of your monthly payments will help you calculate just how much you need to save for your emergency fund. It will also help you be more conscious of your monthly spending. Want to learn more about how to create a budget? Check out NBSB’s article “Great Ways to Start and Keep a Budget.”

  1. Set small savings goals

A large sum can be daunting to tackle especially when it seems like you’re only making a small dent. Dividing up your overall goal into easier to manage savings goals can help you better see the progress you’re making.

  1. Save any extra income

Got a bonus from work or a cash gift for your birthday? Set it aside and add it to your emergency fund savings account. You can’t miss what you never had to spend.

  1. Keep it available but not quickly accessible

Making sure that your money isn’t in a place that’ll tempt you to use it is an important factor. Keeping the ways to access your emergency fund limited will help reduce any temptation to use your money for anything other than a true emergency.

  1. Refill your fund after you use it

Emergency funds are an ongoing savings goal. As time goes on and you grow your savings account you can step back your contributions to something less aggressive that still makes sure your account is growing. When life inevitably throws something your way it’s important to replenish your emergency fund in preparation for the next unexpected event.


Get started with your emergency fund as soon as possible. View North Brookfield Savings Bank’s savings account options online today or visit us in person at one of our convenient locations. We’re here to help.