Retirement, Investments, & Insurance for Individuals Build your knowledge Should I use my emergency fund? 3 questions to help you decide

Should I use my emergency fund? 3 questions to help you decide

You’ve spent valuable time building up your emergency fund. But when is it the right time to use that money? These questions can help you decide.

Photo of a woman working on a laptop in her home
3 min read |

A new water heater. A medical bill. A reduction in hours at your job. We’ve all experienced an unexpected expense or event that upends the best-laid plans (and budgets).

If you’re facing a shortfall, you may be eyeing your emergency fund. Our decision tree can help you decide with confidence if that’s the way to go.

 

Bottom line: Use your emergency fund only for those expenses that are truly unexpected, unavoidable, or urgent, so when a financial emergency does arise, you’re prepared. If you do use some of your emergency fund, it’s OK, just make a plan to rebuild it.

What's next?

We’re here for you when you’re feeling good and not so good about your finances. Get our top tips on building up emergency savings and use our emergency fund calculator.