When Should I Access My Emergency Fund?

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When might you want to use your emergency fund? There can be a lot of reasons for this. Maybe you lost your job and need some money to help pay for food and bills until you find a new one. Or maybe your car broke down, and you need to fix it but don’t have the money saved up. Whatever the reason, it’s important to think carefully before using your emergency fund.

What is an emergency fund, and why do you need one?

An emergency fund is a savings account that you set aside specifically for unexpected expenses. It’s important to have one because it can help you avoid going into debt if something unexpected comes up.

How much should you have in your emergency fund?

Ideally, you should have enough money saved up to cover three to six months of living expenses. This may seem like a lot, but it can help you weather a financial emergency without having to take on debt.

When to Use Your Emergency Fund

There are a few things you should consider before using your emergency fund. First, ask yourself if this is truly an emergency. If it’s not something that is absolutely necessary, then you may want to reconsider using the money. Remember, your emergency fund is for unexpected expenses, not planned ones.

Next, think about whether or not you have other options for covering the expense. If you do have other options, such as using a credit card or taking out a loan, you may want to consider those first. Using your emergency fund should be a last resort.

Finally, think about how long it will take you to replenish your emergency fund. If you think it will take a long time to save up the money again, you may want to consider using other options. However, if you think you can replenish your fund relatively quickly, then using the money may not be as big of a deal.

How to create an emergency fund

If you don’t have an emergency fund, it’s never too late to start one. Begin by setting aside some money each month to put into savings. You can start with a small amount in your account and gradually increase it as you get more comfortable. Another option is to set up a separate savings account specifically for your emergency fund. This can help you keep track of your progress and make it easier to save.

What to do if you don’t have an emergency fund

If you find yourself in a situation where you need money but don’t have an emergency fund, there are a few options you can consider. You may be able to get a loan from family or friends, use a credit card, or take out a personal loan from a bank or lender. However, it’s important to remember that taking on debt should always be a last resort. If you can, try to find other ways to cover the expense or wait until you have the money saved up.


In general, you should only use your emergency fund for true emergencies. This means unexpected expenses that are absolutely necessary and cannot be covered by other means. Before using your emergency fund, consider whether or not the expense is truly an emergency and if you have other options for covering it. Additionally, think about how long it will take you to replenish your fund. With careful consideration, you can make sure you use your emergency fund wisely.

Emergency funds are a vital part of personal finance and can help you weather unexpected financial emergencies. Be sure to consider all your options before using your emergency fund, and remember to replenish it as soon as possible after you use it.





My Life, I Guess is a personal finance and career blog by Amanda Kay, an Employment Specialist and older millennial from Ontario, Canada that strives to keep the "person" in personal finance by writing about money, mistakes, and making a living. She focuses on what it’s like being in debt, living paycheck to paycheck, and surviving unemployment while also offering advice and support for others in similar situations - including a FREE library of career & job search resources.

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