• An emergency fund is a financial safety net in case of future setbacks and/or unexpected expenses.

  • Reserve funds should generally provide for three to six months of spending, although the 2020 economic crisis and lockdown have led some experts to suggest up to one year.
  • Individuals should keep their reserve funds in accounts that are easily accessible and easy to liquidate.
  • Contributors can use tax refunds and other windfalls to accumulate their funds.
  • Some employers have developed emergency saving programs.