Top of main content

Build emergency savings

Father and son playing in the park; image used for HSBC Build emergency savings article

You may be able to meet your needs and expenses each month, but are you prepared for an emergency or unexpected cost?

What if your car breaks down, you lose your job, or any medical exigency receive an unexpected bill?

Putting money aside for emergency or unexpected costs isn't easy, and it's a challenge for many people all over the world. As a result, an emergency or unexpected cost can lead you to financial hardship.

Being prepared for the unexpected, rather than dealing with it only when it arises, is key to your financial wellbeing. Estimates vary throughout the world, but experts recommend building up enough savings to cover at least 3 months of essential outgoings, in case of emergency.

Here are 5 tips for building an emergency savings fund:

    1. Set savings goals. Setting goals helps you to track your progress and measure your success. Plan to build up enough savings to cover at least three months of essential spends, in case of emergency. Anything else that you want to save for (like a holiday) should be added to this.
  2. Another thing to consider is to discuss your savings goals with your loved ones. Explain what they are for and why they are important. Sharing a savings goal with those around you can help you to stay on track.
  3. Keep your emergency funds separate from the money you use for everyday spending, or to pay your bills. Setting up a separate savings account can usually be done quickly online.
  4. Try to save regularly and automatically. Rather than try to save what you have left at the end of the month, set up an automated transfer from your regular bank account to a savings account on the day you are paid.
  5. If you can't save a lot, it can be hard to get motivated to save at all. But saving any amount (however small) is helpful, and can build up a valuable emergency savings fund over time.
Back to top  

Take the next step

Financial wellbeing

A man managing online banking; image used for HSBC India Manage existing debt article
Smarter ways to reduce what you owe.
A man enjoying on the armchair; image used for HSBC India Save for the future article
Start planning for time ahead
Father and son flying kite in the beach; image used for HSBC India Protect what matters article
Insurance is designed to protect you against some of life's risks.

Disclaimer

This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider (s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.