Safety cushion
Training 225 minutesemergency fund
You are a courier with $400 in the bank. One breakdown or fine and you are in debt. Step one to freedom: one month of living costs set aside. It turns a disaster into a normal bill.
Training goal: Save $2,000, one month of living, without a bank loan
▶ Play this trainingWhat you will learn
- A cushion is 3 to 6 months of living costs, kept apart and left alone.
- Without savings every bill becomes a loan, and loans eat future paychecks.
- Cushion first, investments second.
Your real-life step
On payday, move 10% to a separate account before any spending. Target: 3 months of expenses.
Questions and answers
How big should an emergency fund be?
Usually 3 to 6 months of essential expenses. With an unstable income, aim for 6 or more.
Where should I keep an emergency fund?
In a separate account you can reach fast: a savings account or a deposit with easy withdrawal.
Should I build savings or pay off debt first?
First a small one-month buffer, then expensive debt, then the full cushion.
More trainings in this module
- How to save money
- Pay yourself first
- Automatic savings
- Self-care without debt
- Savings accounts and deposits
- Inflation
Numbers are illustrative. A game, not financial advice.