We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How Do I save Emergency Money?

By Tara Barnett
Updated May 17, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

It is very difficult to save emergency money when one is on a tight budget, and the only answer to this problem is to maintain self control at all times. If one's budget is a little looser, setting aside emergency money may mean simply setting up a special account that will hold the money in order to remind the account holder what the money is for. Most people find that setting up automatic transfers from a checking account into the emergency account is a good way to reduce temptation, but this can be a bad solution if there is a chance that this strategy will cause financial hardship. Saving up emergency money must not itself create an emergency, as this defeats the purpose of the fund.

People who have more income than they need in a month are usually already in the habit of setting some money aside for larger purchases or possible disasters. In this case, saving emergency money simply means giving that money a purpose. An emergency fund is a much more difficult prospect for a person who must tightly budget his or her money in order to make ends meet every month. Unfortunately, an emergency fund is also much more important for a person on a tight budget because this type of person generally does not have many luxuries that can be forgone in a given month should an emergency arise.

The key to saving emergency money is to separate that money from the rest of one's money in some way. Many people use a savings account for this purpose as it is often more difficult to withdraw money from this type of account. Temptation to spend the emergency money is the main reason it is difficult to save this type of money. Psychologically, it seems like the money could be better used in the present. For many people, it is better to simply pretend that this money no longer exists.

Contributing to the emergency fund from every paycheck is ideal, but this is not always possible. Making small contributions on a regular basis can add up over time. The emergency fund typically need be no larger than the amount of money necessary to live comfortably for three months, but even a relatively small amount can be a lifesaver in certain situations, so it is always worth saving. Writing down one's budget and including contributions to the emergency fund can be a great way ensure that one will not suffer any significant hardship by saving up money. It is much worse to have to break into one's emergency money due to an overly strict budget than it is to simply not contribute until one's finances straighten out.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.