You may need a 12-month emergency fund—here’s how to get it

What seemed like a reasonable target for an emergency fund — three to six months of spending — no longer feels that way after Covid wreaks havoc on our economy.

Financial expert Suss Orman thinks people with stable jobs should target a 12-month emergency fund after seeing millions of people blow up their savings last year. If you thought it was silly to save that much money before, this perspective might have changed your mind.

TPH Senior Writer Nicole Dow has researched the pros and cons of an emergency fund for a year, including who needs it and who doesn’t.

They also detail how to determine what your emergency fund should look like. Tip: It’s not 12 months of your home pay, but it’s a small budget that you can afford for you and your family over four seasons.

Here’s how you can figure out how much to put in your emergency fund — and how to get extra money.

1. Determine your basic budget الأساسية

If you lose your job, how long will it take to get another job? It depends on your industry, but the average is about five months (and this was before the pandemic). You were hoping it was less, but it could be more, so you have to be prepared.

This means a breakdown of the base budget that you can adjust if the need arises. Keep only the essentials and cut out what you can live without. Food, shelter, medical expenses, utilities, and minimum debt payments can remain; Subscription services, additional debt payments, and extracurricular activities are temporarily suspended.

You can also see if your utility companies and banks can help or reduce fees and check with your mortgage company about deductible options.

Once you’ve created the essentials-only budget, multiply it by 12. This is what your 12-month emergency fund goal should be.

2. Start your emergency savings fund in a high-yield account and earn 16 times the average interest

If you don’t have an account for your emergency fund, get one. Keeping cash under your mattress or in your sock drawer isn’t safe at all, plus it won’t fetch you any interest — not much less than the average savings account, though.

but an account b Ambition It allows you to earn up to 16 times the average interest on the funds in your account. And you’ll get up to 5% back every time you use your debit card.

Not too shabby!

Enter your email address here Get a free Aspiration Spend and Save account. After confirming your email, link your bank account securely so they can start helping you get extra money. Your money is FDIC insured and they use military grade encryption which is the nerd talk of “it’s totally safe”.

3. Cut your bills now to help save for later

There are some bills that you can cut right now without having to sacrifice anything.

By reducing these monthly payments, you can save more money instantly And the You don’t have to worry about whether you need to dip into your emergency fund. the win.

Start with your car insurance. When was the last time you checked car insurance rates?

You should shop your options every six months or so – it might save you some serious money. Let’s be real, though. This is probably not the first thing you think of when you wake up. But it doesn’t have to be.

A website called It makes it extremely easy to compare car insurance rates. All you have to do is enter your zip code and age, and it will show you your options.

By using, people saved an average of $489 per year.

Yeah. That could be $500 in your emergency fund just to take a few minutes See your options.

4. Get your money back every time you go grocery shopping

You know coupons are a foolproof way to save more money when you go grocery shopping – but they take a long time. Alternatively, you can get rewarded for actually buying what you shop. No need to mow, and you’ll still be able to add more money to your emergency fund each month.

A free app called Bring rewards It will reward you with gift cards just for purchasing toilet paper and over 250 other items at the grocery store.

Here’s how it works: After you’ve downloaded the app, simply take a picture of your receipt showing that you’ve purchased an item from one of the brands listed on Fetch. For your efforts, you’ll earn gift cards to places like Amazon or Walmart.

you may Download the free Fetch Rewards app here To start getting free gift cards. Over a million people already have it, so they must be onto something…

5. Earn up to $225 for your emergency fund just for going down a rabbit hole on your phone

We have all been there. You sit down at the end of the day to relax on your phone, and suddenly, two hours later, you’re back on the weird part of YouTube again. How did I get here?

But you don’t have to feel guilty about it anymore. Research companies will actually pay you to go down those video rabbit holes.

You can add up to $225 per month to your pocket by signing up for a free account with InboxDollars. They will give you short videos to choose from each day, and then ask you some questions about them.

You just have to answer honestly, and InboxDollars will keep paying you every month. This may sound too good to be true, but it has already paid its users over $60 million.

It takes registration and Start getting paid for your night zone.

6. Find out if you are overpaying

Think of all the times you overpaid… and how much money you could have saved in your emergency fund, if someone had just told you before hitting.

That’s exactly what this is free service Do.

Simply add it to your browser for free, and before you check out, it’ll check other websites, including Walmart, eBay, and others to see if your item is available at a cheaper rate. Plus, you can get coupon codes, set up price drop alerts, and even see an item’s price history.

Let’s say you’re shopping for a new TV, and assume you’ve found the best price. A pop-up will appear letting you know if this exact TV is available elsewhere at a cheaper rate. If there are any coupon codes available, they will also be automatically applied to your order.

Last year, this saved people $160 million.

You can get started with just a few clicks to Find out if you are overpaying online.

Capital One Shopping compensates us when you get the extension using the links provided.

7. Stop paying your credit card company

Your credit card company is ripping you off with crazy interest rates — some as high as 36% — making you pay extra money each month that could go into your emergency savings instead.

But a website called AmOne want to help.

If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan that you can use to pay off each of your balances.

Benefit? You will only have one bill left to pay each month. And since interest rates on personal loans are low (AmOne rates start at 3.49% APR), you’ll be out of debt. who – which Much faster. Plus: No credit card payment this month.

You don’t need a perfect credit score to get a loan – and comparing your options won’t affect your score at all. Plus, AmOne keeps your information confidential and secure, which is probably why after 20 years in the business, it still has an A+ rating with the Better Business Bureau.

It takes less than a minute and only 10 questions Find out which loans you qualify for You don’t even need to enter your Social Security number. You need to give AmOne a real phone number in order to qualify, but don’t worry – they won’t send you spam emails with phone calls.

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