Nearing Retirement

When should you use your emergency fund?

You’ve managed to save the recommended three to six months of finances for an emergency fund. Now, when is it ok to use it?

Rainy-day funds can be tempting to dip into every now and then, but before you use those savings you’ve worked so hard to build up, ask yourself, “Is this really an emergency?” Emergency funds are meant to provide a financial safety net for true emergencies and should be used only for expenses that meet three qualifications:

  1. Unexpected
  2. Necessary
  3. Immediate


It feels good to treat yourself now and then, but resist the instant gratification for long-term satisfaction. Knowing you will be ok if the unexpected happens is worth it. Remind yourself how long you saved to fill your emergency fund and that you saved it for a reason. When that rainy day comes, you’ll be ready.