Building an emergency fund together

An emergency fund turns a broken car or a lost job from a crisis into an annoyance. Here is how to build one as a couple.

How much

A common target is three to six months of shared costs: rent, groceries, bills and insurance. Start with one month. It is a real milestone.

Where to keep it

Somewhere separate from your everyday account, so it is easy to reach in a real emergency and a little harder to reach for a sale.

Make it automatic

Set a small transfer for the day after payday. Raise it a little every time one of you gets a raise.