Emergency fund: What, how, and how much

Emergency fund: What, how, and how much

Learn the importance of an emergency fund, how much to save, where to keep it, and how to build one with your bunq bank account for financial peace of mind.

2 min read

ago

Life often throws unexpected curveballs, and having an emergency fund can be a lifesaver. In this post, we'll explore what an emergency fund is, how much you should save, and how to build one with your bunq bank account.

What is an emergency fund?

An emergency fund is a stash of money set aside to cover unforeseen expenses like medical bills, car repairs, or job loss. It acts as a financial safety net, preventing you from dipping into your long-term savings or racking up debt when emergencies arise.

How much money do people usually keep as an emergency fund?

The amount you need in your emergency fund depends on your personal finance situation and lifestyle. A common rule of thumb suggests saving 3-6 months' worth of living expenses. However, if you have dependents or a fluctuating income, you may want to save more.

Where do people keep their emergency fund?

It's essential to keep your emergency fund separate from your daily spending money. A savings account is an excellent option, as it offers easy access to your funds while earning interest. With bunq, you can create multiple Bank Accounts to manage your finances better and designate one specifically for your emergency fund.

How to build your emergency fund?

Building an emergency fund takes time and discipline. Here are some steps to help you get started:

  • Set a goal: Determine how much money you'd like to have in your emergency fund based on your living expenses and financial obligations.

  • Create a budget: Track your spending and identify areas where you can cut back to free up extra cash for your emergency fund.

  • Automate your savings: With bunq's Auto Save feature, you can automatically transfer a percentage of your income to your emergency fund every time you get paid.

  • Adjust your goal as needed: Reassess your emergency fund goal periodically and adjust it based on changes in your financial situation or living expenses.

Conclusion

Having an emergency fund is crucial for maintaining financial stability when life throws unexpected challenges your way. By setting a goal, creating a budget, and using bunq's features like Auto Save and Bank Accounts, you'll be well on your way to building a solid emergency fund. Start saving today with a bunq bank account!

Share this article

What's bunq?

We're not just a bank; we're a lifestyle choice for those who crave freedom, flexibility, and financial control on the go.

What's bunq?

We're not just a bank; we're a lifestyle choice for those who crave freedom, flexibility, and financial control on the go.

What's bunq?

We're not just a bank; we're a lifestyle choice for those who crave freedom, flexibility, and financial control on the go.

Regain control

We're putting full control over your finances back into your hands.

Regain control

We're putting full control over your finances back into your hands.

Regain control

We're putting full control over your finances back into your hands.

Bank like a local

Seamlessly manage your money, wherever you are.

Bank like a local

Seamlessly manage your money, wherever you are.

Bank like a local

Seamlessly manage your money, wherever you are.

Budget effortlessly

Set up bank accounts and budget from them automatically.

Budget effortlessly

Set up bank accounts and budget from them automatically.

Budget effortlessly

Set up bank accounts and budget from them automatically.

Plant trees

You could plant a tree for every €100 spent with a bunq card.

Plant trees

You could plant a tree for every €100 spent with a bunq card.

Plant trees

You could plant a tree for every €100 spent with a bunq card.

Keep money safe

Our DGS insurance protects your money up to €‎100.000.

Keep money safe

Our DGS insurance protects your money up to €‎100.000.

Keep money safe

Our DGS insurance protects your money up to €‎100.000.

Bank together

Share your finances with anyone, without all the hassle.

Bank together

Share your finances with anyone, without all the hassle.

Bank together

Share your finances with anyone, without all the hassle.

Check out these articles

If you liked this, these might be interesting for you as well.

ATM cash withdrawal fee explained

Understand why banks charge ATM cash withdrawal fees and learn how to avoid them with digital banks like bunq.

ATM cash withdrawal fee explained

Understand why banks charge ATM cash withdrawal fees and learn how to avoid them with digital banks like bunq.

ATM cash withdrawal fee explained

Understand why banks charge ATM cash withdrawal fees and learn how to avoid them with digital banks like bunq.

A brief history of Mastercard

Discover the fascinating history of Mastercard, the birth of credit cards, and how digital banking with bunq is changing the future of banking. Join now!

A brief history of Mastercard

Discover the fascinating history of Mastercard, the birth of credit cards, and how digital banking with bunq is changing the future of banking. Join now!

A brief history of Mastercard

Discover the fascinating history of Mastercard, the birth of credit cards, and how digital banking with bunq is changing the future of banking. Join now!

European Tourist Tax Explained

Learn about European tourist tax and manage your travel expenses with bunq. Hold multiple currencies, make instant payments, and set up budgets while traveling!

European Tourist Tax Explained

Learn about European tourist tax and manage your travel expenses with bunq. Hold multiple currencies, make instant payments, and set up budgets while traveling!

European Tourist Tax Explained

Learn about European tourist tax and manage your travel expenses with bunq. Hold multiple currencies, make instant payments, and set up budgets while traveling!

Start your 30-day free trial

Open your account in just 5 minutes, directly from your phone.

Start your 30-day free trial

Open your account in just 5 minutes, directly from your phone.

Start your 30-day free trial

Open your account in just 5 minutes, directly from your phone.