Skip to main content
Whistleblowing Contact Branches ATM's

Building an emergency fund

An emergency fund is your financial safety net, providing security against unexpected events like job loss or medical emergencies. This guide will help you save at least three to six months' worth of living expenses. Start small and increase your savings steadily with our expert tips.

  • 4 min read

Why you need an emergency fund

Life is unpredictable. An emergency fund:

  • Reduces stress by providing peace of mind.
  • Protects you from high-interest debt during emergencies.
  • Offers flexibility to handle unexpected expenses.

How much should you save?

Aim to save three to six months' worth of living expenses. The exact amount depends on:

  • Job Stability: Less stable jobs require larger funds.
  • Dependents: More dependents mean higher savings.
  • Existing Debt: Significant debt necessitates a larger fund to avoid financial strain

Steps to build your emergency fund

  • 1

    Calculate your monthly expenses

    List essential expenses like housing, utilities, groceries, transportation, insurance, and minimum debt payments. Multiply the total by three to six months to set your savings goal.

  • 2

    Set up a separate savings account

    Open a dedicated savings account to keep your emergency fund separate from your regular spending money.

  • 3

    Start small and save regularly

    Begin with a small, manageable amount each month. Strategies include:

    • Automate Savings: Set up automatic transfers to your emergency fund.
    • Save Windfalls: Deposit unexpected money like tax refunds into your emergency fund.
    • Cut Unnecessary Expenses: Redirect savings from cutting back on non-essential spending.
  • 4

    Increase your savings over time

    Gradually increase your monthly savings as you become more comfortable with your budget.

Tips for building your emergency fund

  • 1

    Prioritize your emergency fund

    Treat your emergency fund as a non-negotiable expense.

  • 2

    Use budgeting apps

    Use Raiffeisen ON to track spending and savings progress.

     

  • 3

    Reduce debt

    Focus on reducing high-interest debt while building your emergency fund.

  • 4

    Stay disciplined

    Establish clear rules for what constitutes an emergency to avoid unnecessary withdrawals.

  • 5

    Review and adjust

    Regularly review and adjust your savings goal as your life circumstances change.

Track your expenses on time

Tracking your expenses has never been easier! With Raiffeisen ON, you can monitor your expenses, download statements, pay bills, and manage your monthly payments seamlessly.

ron download

These topics might also interest you.

Let´s discuss your needs

Get advice at a branch

Our experts are available to discuss with you at our branches.

Find a branch

Contact our call center

From any mobile network (normal rate).

Call Us

Arrange an appointment

Arrange an appointment with us in one of our branches using our online form.

Make an appointment