Happy first Sunday of 2025, NOYACKERS! As we kick off this fresh new year, we’re so grateful to have you as part of our community. This year is full of opportunities, and we’re here to help you stay ready for whatever comes your way. Let’s start by talking about something super important: building an emergency fund. Life can be unpredictable, but having a financial safety net can make all the difference. Today, we’re excited to welcome Nate Hoskin ,a Certified Financial Planer and founder at Hoskin Capital to share simple tips and insights to help you get started.

Lets Dig In! 🚀

Why an Emergency Fund Matters

An emergency fund is your financial safety net, helping you handle life’s surprises without dipping into investments, paying unnecessary taxes, or piling on debt. Millennials and Gen Z face unique money challenges—rising housing costs, childcare expenses, career changes, and market ups and downs. Having an emergency fund protects you from making rushed decisions that could derail your financial goals.

Before we dive into building your fund, let’s define what qualifies as an emergency. Think of these situations:

  • Medical Expenses: From sudden surgeries to emergency room visits, unexpected healthcare bills can crop up at any time.
  • Loss of Income: Whether it’s a job loss or a career pivot, having a financial cushion keeps you afloat.
  • Mortgage or Rent Payments: When income drops or costs rise unexpectedly, your fund ensures you stay housed.
  • Essential Living Expenses: Groceries, utilities, childcare—these non-negotiables need coverage during tough times.
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Image: Synchrony

Guide to Building a Rock-Solid Emergency Fund


Step 1: Set a Realistic Savings Target

Aim for three to six months’ worth of essential living expenses. Include housing, insurance, healthcare, and childcare in your calculations. High-income earners or those with variable pay may need a larger fund to cover fluctuations. By setting a goal that’s both ambitious and achievable, you’ll be better prepared to weather financial storms.

Step 2: Choose a High-Yield, Accessible Savings Account

An emergency fund should be held in a liquid, high-yield account where it earns interest but remains accessible. Check out some examples of high-yield savings accounts below:

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Pro Tip:  Make Sure to Ladder Your Emergency Fund

Create a liquidity ladder to balance quick access with growth potential:

  • Instant Access: Keep some cash in a money market account. It’s like a souped-up savings account—quick to access with a modest return.
  • Short-Term (72-Hour Money): Park some funds in a high-yield savings account. These accounts offer competitive returns and allow access to your money within about 72 hours, giving you flexibility for short-term needs.
  • Long-Term: Invest a portion in a brokerage account. While less accessible, selling stocks if needed provides higher return potential.

This strategy keeps you ready for immediate needs while growing your financial cushion.

Step 3: Automate Your Savings

Make saving consistent and easy by setting up automatic transfers from your checking account. Automation helps you build your fund steadily without having to think about it, making it less tempting to skip a month.

Step 4: Review and Adjust Annually

Needs often evolve with changes in family size, lifestyle, or career shifts. Reviewing and adjusting your emergency fund annually (or whenever there is a significant life change) helps ensure the fund aligns with your needs.

Try scheduling a “family budget meeting” at Thanksgiving. Everything starts with a budget, and it’s the base best way to identify spending need gaps or any surplus you can devote to additional savings. include the following in your list:

  • Insurance
  • Debt Reduction
  • Savings
  • Vacations
  • Other Financial Goals you have on your list
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Image: Napkin Finance

Step 5: Use It Only for True Emergencies

Your life evolves, and so should your emergency fund. Schedule an annual review (or revisit after major life changes like a new job, a baby, or a big move) to ensure your fund matches your current needs. Use this time to assess other financial priorities too, like insurance, debt reduction, and long-term savings.

Step 6: Replenishing Your Fund Strategically After Use

If you need to tap into your fund, prioritize rebuilding it as soon as possible. Bonuses, tax refunds, or extra income can help restore it faster, ensuring you’re ready for whatever comes next.

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To help you get started on your journey to build an emergency fund, NOYACK has partnered up with PocketGuard, the #1 financial planning tool that helps you get a grip on your finances. NOYACK subscribers using this special link get a 30% discount on their subscriptions and a one month free trial.

Bottom Line

An emergency fund isn’t just savings—it’s your safety net for life’s surprises. By keeping it separate from investments, you safeguard your lifestyle and long-term goals without risking penalties or depleting your future.


In the end, an emergency fund gives you peace of mind, knowing that if something unexpected happens, you’ll be prepared. Your future self will thank you.

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Check out our new Podcast  – Inheriting the Future Episode 159 is all about Building an Emergency Fund