Emergency Fund Checklist | Flamingo Finance

1Find your number

A common target is 3 to 6 months of essential expenses: rent, food, utilities, transport, insurance and minimum debt payments. Not your whole lifestyle.

Monthly essentials

Steadier job and no dependents? Lean toward 3. Variable income, a single paycheck or a family? Lean toward 6.

Your full target $0 Starter goal: $1,000 first, then build up.

I added up my monthly essentialsLook at your last 2 to 3 months of statements, not a guess.
I picked my target (3, 4 or 6 months)

2Pick the right home for it

It should be safe, easy to reach, and just hard enough to touch that you won't dip in for a sale.

Open a high-yield savings accountOnline banks often pay several times what a basic savings account does, with no monthly fees.
Check it's FDIC or NCUA insuredIn the US, deposits are insured up to $250,000 per depositor, per bank, per ownership category.
Keep it separate from everyday checkingOut of sight is out of mind. Give the account a name like "Don't touch."
Don't invest itThis money needs to be there on the day the market is down. Investing is for later goals.

3Build it, on autopilot

Don't aim for the full amount at once. Small, automatic and boring beats big and occasional.

Save a $1,000 starter fundEnough to cover most small surprises while you work on the bigger number.
Set up an automatic transfer on paydayEven $25 a week adds up to $1,300 in a year. Raise it when you get a raise.
Decide where windfalls goTax refund, bonus, birthday cash: send a set share, such as half, to the fund.
Pay minimums on all debts while you buildMissing payments hurts more than a thin fund. Starter first, then tackle high-interest debt, then fill the rest.
Hit 50% of my target
Hit 100% of my target 🎉Now point that autopilot transfer at investing or your next goal.

4Know what counts as an emergency

The rule of thumb: is it unexpected, necessary and urgent? If it fails any of the three, it isn't one.

Counts

Job loss or a big drop in income
Urgent medical or dental bills
Car or home repairs you need to keep working or stay safe
Emergency travel for a family crisis
Essential bills during a gap in income

Doesn't count

A sale, a concert or a trip
Predictable costs: annual insurance, holiday gifts, car registration
A new phone when the old one works
Investing "while stocks are down"
Anything you could have planned for

Open a separate "predictable costs" potCar insurance, gifts, annual fees. Save a little each month so they never become a "crisis."

5After you use it

Using your fund isn't failure. It's the fund doing its job.

Write down a refill planDecide now: pause extra spending or investing until the fund is back to target.
Review the target once a yearRent goes up, life changes. Re-add your essentials every January.

General education only, not personalized financial advice. Your situation may call for more or less than the ranges shown.

Next, give every dollar a job.

The 50/30/20 budget sheet shows how much of your pay can go to savings.

Open the budget sheet

Money words, decoded → Cost of waiting calculator →

The emergency fund checklist.