Would replacing a flat tire throw your finances off course this month? What about an unexpected trip to the emergency room? Or a sudden job loss? You’re not alone. According to the Federal Reserve’s 2024 Survey of Household Economics and Decisionmaking, almost half of U.S. adults (46%) have no emergency savings. The best time to start building an emergency savings fund is right now, before that financial shock happens. Yahoo Finance explains how starting an emergency savings fund can be a financial lifeline, the steps to take that make sense based on your financial situation, and how to ensure it remains a source of backup funds.
