# Emergency Fund Milestone Checklist (From $0 to 6 Months) — free download from DollarWise (dollarwise.xyz)

Work through one phase at a time. Check items off as you finish them, and
don't look ahead — each milestone is a win on its own.

## Phase 1 — Starter fund ($1,000)

- [ ] Calculate your essential monthly expenses: housing, food, transport, utilities, insurance, and minimum debt payments
- [ ] Open a separate savings account named "Emergency Fund" so its purpose is clear every time you log in
- [ ] Set up an automatic transfer of at least $25–$50 per paycheck into that account
- [ ] Sell one unused item this week and move the cash straight into the fund
- [ ] Pause non-essential subscriptions for 30 days and redirect that money to the fund
- [ ] If $1,000 feels too far away, build a $200 starter buffer first, then keep going
- [ ] Write your one rule: this money is for emergencies only — job loss, medical bills, car breakdowns, urgent home repairs
- [ ] Hit $1,000, then pause growing it and attack high-interest debt while keeping the starter fund intact

## Phase 2 — One month of expenses

- [ ] Multiply your essential monthly expenses by one — that number is your Phase 2 target
- [ ] Raise your automatic transfer to a fixed amount that reaches the target within 6–12 months
- [ ] Sweep every windfall into the fund — tax refunds, bonuses, cashback, and gift money
- [ ] List your three most likely emergencies and what each would cost, to size the fund against reality
- [ ] Confirm the fund sits in an insured savings account, not stocks or crypto — it must be stable and liquid
- [ ] Celebrate reaching one full month of expenses — acknowledge the milestone before pushing on

## Phase 3 — Three months of expenses

- [ ] Recalculate your essentials — three months of current spending is your new target
- [ ] Negotiate one recurring bill (phone, insurance, internet) and move the monthly savings into the fund
- [ ] Apply the "pay yourself first" rule: the fund transfer fires the day after payday, before anything else
- [ ] If you had to dip into the fund, rebuild it to the milestone level before resuming other savings goals
- [ ] Review your life changes — new job, new home, new dependents — and adjust the target to match
- [ ] At three months, you can cover most job transitions and surprise bills — notice how your stress has changed

## Phase 4 — Six months of expenses

- [ ] Set the six-month target and accept the longer timeline — slow and steady still wins
- [ ] Run a "dry run": imagine a job loss and list, month by month, how the fund would carry you
- [ ] Once fully funded, redirect the automatic transfer toward investing or your next financial goal
- [ ] Audit the fund once a year — expenses change, so rebalance the target to match
- [ ] Keep it at six months unless you are a freelancer or single-income household, then consider 9–12 months
- [ ] Never invest the emergency fund — its job is safety, not growth
- [ ] Share the plan with your partner or household so everyone respects the rules
- [ ] Mark the completion date — you built six months of freedom, and that deserves recognition