How much should you have in an emergency fund?
Quick summary
The Financial Consumer Agency of Canada says to try to save 3 to 6 months of your regular expenses. Keep it in a separate savings account and start small. Next step: use our emergency fund calculator.
Checked November 2, 2026. Main source: Financial Consumer Agency of Canada, Setting up an emergency fund. Checked November 2, 2026.. See all 1 source.
Key facts
- Target
- 3 to 6 months of your regular expenses
- Source: FCAC, Setting up an emergency fund, read Nov 2, 2026
- Where
- In a separate savings account
- Source: FCAC, Setting up an emergency fund, read Nov 2, 2026
- How to start
- Start small
- Source: FCAC, Setting up an emergency fund, read Nov 2, 2026
How much to save
The agency says: try to save the equivalent of 3 to 6 months of your regular expenses. You can also aim for 3 to 6 months of income.
Example (our arithmetic): if your must-pay costs are $2,500 a month, 3 months is $7,500 and 6 months is $15,000.
Source: Financial Consumer Agency of Canada, Setting up an emergency fund. Checked November 2, 2026.
Where to keep it
- In a separate savings account, apart from everyday spending.
- With no or low fees.
- With no penalty for taking money out.
- With interest.
Source: Financial Consumer Agency of Canada, Setting up an emergency fund. Checked November 2, 2026.
How to start
- Pick a small amount each week. $5 a week reaches $260 in a year. $20 a week reaches $1,040 (before interest and tax).
- Set up an automatic transfer on payday.
- Move savings from small cuts, such as lunch from home, into the fund.
- Add tax refunds, raises, bonuses and gifts.
- When you pay off a loan, send that payment to the fund.
- Use the fund only for true emergencies, not planned costs like holidays or winter tires.
Source: Financial Consumer Agency of Canada, Setting up an emergency fund. Checked November 2, 2026.
Why it matters
An emergency fund covers surprises such as car repairs, job loss or health problems. It helps you avoid debt and high cost borrowing like payday loans or credit card cash advances.
Questions people ask
How much should I have in an emergency fund in Canada?
The Financial Consumer Agency of Canada says to try to save 3 to 6 months of your regular expenses.
Where should I keep my emergency fund?
In a separate savings account with no or low fees, no penalty for withdrawals, and interest.
How can I start with very little money?
Save a small amount each week. $5 a week reaches $260 in a year, and $20 a week reaches $1,040, before interest and tax.
What counts as an emergency?
True, unplanned costs such as car repairs, job loss or health problems. Planned costs like holidays or winter tires are not emergencies.