Setting up an Emergency Fund

Setting up an Emergency Fund can help you be financially prepared for the unexpected

We've all been there: The car breaks down, just when you need it the most, or the fridge has decided to just stop working. You can't put off these expenses, but chances are, you weren't expecting them.

Instead of being in a jam, or having to go into debt to cover your costs, it's a good idea to set up an Emergency Fund - some savings to cover life's unexpected events.

So how much should you save for a rainy day? Well, most financial experts recommend that you have about three months' salary in your emergency fund. If you don't currently have one, or find it difficult to save money, the key is to start small.

Now, putting money aside for one month's worth of expenses, let alone three, could take some time. But if you set your goal to put even a little money aside each month, you'll have a much better chance of reaching it.

RBC can help you get started, by setting up automatic transfers between your RBC bank accounts, through our "Save-matic Program".

When emergencies happen, and they will happen, it's important to have an emergency fund in place so you have access to the funds you need, quickly.

To figure out how much you should be setting aside, check out the Emergency Fund tool and help yourself be prepared.

Visit the RBC Advice Centre for more great information!