How to build an emergency fund

The plan

1. Pick a target. FCAC suggests three to six months of expenses. Start with one month, then build.
2. Use a separate high-interest savings account. Keep it apart from your chequing so it isn't spent by accident. A TFSA savings account keeps the interest tax-free.
3. Automate it. Schedule a transfer on payday, even a small one.
4. Add windfalls. Put part of tax refunds, raises or bonuses into the fund.
5. Use it only for real emergencies, then refill it. Job loss, urgent repairs, medical costs. Rebuild it before restarting other goals.

This week

• Add up one month of essential expenses.
• Open a separate savings account.
• Set up an automatic transfer for payday.

Calculators for this plan

• Compound interest / TFSA growth
• TFSA contribution room

General information, not financial advice. This plan is a general guide. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.

Sources

• FCAC: Financial Basics (emergency fund guidance)
• Canada.ca: TFSA contribution room

Checked October 16, 2026. Rules and limits change; confirm with the source before acting.