Build Your Emergency Savings

Are you building your emergency savings? 

Bankrate’s 2026 Credit Card Debt Report revealed that emergency and day-to-day expenses are the most common reasons for credit card debt. 41% of those carrying debt say the primary cause was an emergency expense. A third delayed or avoided creating an emergency savings fund because of debt. Wow!

We all need emergency funds to draw on during unexpected circumstances! It’s insurance for sudden setbacks like job loss, medical bills, or major repairs. Most experts recommend saving three to six months of your current living expenses. Save more if layoffs are common in your industry or if you live on a fixed income. Same for those with dependents, or those who own an older home or drive older vehicles. Single parents, depending on one income, should save more as well.

Are you self-employed? Have medical issues? Do you carry high insurance deductibles or have unstable income? Save more. A portion of the emergency savings should be “liquid,” or easily accessible, in accounts that won’t be penalized for withdrawal. Don’t confuse a long-term retirement savings plan with an emergency fund. Open an FDIC-insured account that you won’t touch until a true emergency arises. Save $1,000 as quickly as possible into a money market or high-yield savings account. Set up automatic deposits to avoid spending the money. Replenish money quickly when emergencies occur, then raise the goal. Remember the ant in Proverbs 6, and you’ll be prepared!

Is credit card debt keeping you awake at night? Let Christian Credit Counselors help. They can create a debt management plan specifically for you. For more information, visit online at crown.org/ccc.