Article How strong is your safety net?

An emergency fund can be your first line of defense against the unexpected

When they happen, emergencies tend to show up unannounced. An emergency fund can be a vital part of your safety net so that a sudden medical bill, urgent home repair or job loss doesn’t harm your financial stability.

Key Takeaways:

  • An emergency fund is an account dedicated to covering unexpected urgent expenses.
  • Even common emergencies, such as a medical bill or pressing home repairs, can cost thousands of dollars. An emergency fund can help you avoid borrowing money in these situations.
  • If you don’t already have an emergency fund, consider starting one right away and funding it before other nonessential financial goals.
  • A good rule of thumb is to save between three and nine months of living expenses, depending on your personal situation.
  • Keeping your emergency savings in a dedicated account, funding it with direct deposit and avoiding tapping it for nonemergencies can help it grow.

UBS Financial Services Inc. is not a bank and does not represent itself as a bank. This information is for educational purposes only and does not promote products or services offered by UBS. Any relationship you may have with UBS Financial Services Inc. is not a bank account. Unless otherwise disclosed, securities and other investments held through UBS Financial Services Inc. ARE NOT FDIC INSURED, ARE NOT BANK GUARANTEED, AND MAY LOSE VALUE. UBS Financial Services Inc. does not offer savings accounts.

This content has been provided under arrangement with Napkin Finance®. It may have been modified to meet the specific needs of UBS. Napkin Finance® is not responsible for any errors in the content, or any actions taken in reliance on it. Please do not copy or excerpt this content without express permission from UBS. UBS and Napkin Finance® are not affiliated.

This is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. It has not been prepared with regard to the specific objectives, financial situation or particular needs of any specific person. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS.

As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. A small number of our financial advisors are not permitted to offer advisory services to you, and can only work with you directly as UBS broker-dealer representatives. Your financial advisor will let you know if this is the case and, if you desire advisory services, will be happy to refer you to another financial advisor who can help you. Our agreements and disclosures will inform you about whether we and our financial advisors are acting in our capacity as an investment adviser or broker-dealer. For more information, please review the PDF document at ubs.com/relationshipsummary(PDF, 147 KB).

© UBS 2024. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS Group AG. Member FINRA. Member SIPC.