$10,000 Full Emergency Fund
$10,000
A fully-funded safety net for most single-income households, freeing up mental space to start investing.
Ways to get there
Increase your savings rate step by step
Raise your savings rate by a percentage point every quarter until the fund is complete.
Pros
- Gradual, sustainable pace
- Adjusts naturally as income grows
Cons
- Takes longer than lump-sum approaches
- Requires periodic budget check-ins
- Aggressive
- 9 months
- Moderate
- 1 year and 6 months
- Conservative
- 2 years
Redirect a bonus or tax refund
Commit any windfalls — bonuses, tax refunds, gifts — entirely to closing this fund.
Pros
- Big jumps in progress with no lifestyle change
- No new habit required
Cons
- Depends on irregular, unpredictable income
- Can stall between windfalls
- Aggressive
- 6 months
- Moderate
- 1 year and 2 months
- Conservative
- 1 year and 8 months