Having an emergency savings account is a cornerstone to solid financial planning.
An emergency savings account may prevent you from having to tap credit cards, take out loans, or withdraw from retirement accounts.
The GuideSteps program recommends that you set aside $1,000 in an emergency savings account.
Once achieved, your next goal is to save 3 - 6 months of salary. Keep in mind, as your income increases, it’s appropriate to increase your savings.
Save up to 6-month salary for unexpected expenses.
$1,000 emergency savings
3-6 months of salary/income
Types of accounts