The Road to Building Reserves
Any successful saver needs at least three months’ reserves, so you won’t have to borrow money
in case of an emergency. Start building your emergency fund now with these tips!
Keep your reserves in their own low-risk savings account.
Automatically transfer 10% of each paycheck into your reserves.
Aim to build a $1,000 emergency fund first to avoid getting overwhelmed.
If you haven’t hit three months’ savings yet, send a part of any bonus money toward your reserves, including:
• Tax refunds
• Work bonuses
• Gifted money
28% of Americans have no emergency fund.
38% of Americans could not produce $500 for an emergency without selling something or taking out a loan.