An emergency fund is money set aside for surprises: a medical bill, a car repair, a job loss or a last-minute flight home. For newcomers, it matters even more, because family and credit may not be available to fall back on.
How much?
A common target is three to six months of essential expenses. If your visa depends on your job, a job loss can mean tight deadlines, so a larger cushion gives you more options.
How to build it
- Start with $500–1,000
- Automate a transfer every payday
- Put bonuses, tax refunds and gifts straight into it
- Increase the transfer when you get a raise
Where to keep it
A high-yield savings account at an FDIC-insured bank or NCUA-insured credit union keeps it safe, separate from daily spending and earning some interest.
What counts: Real emergencies are unexpected and necessary. A sale doesn’t count.
