These five lifestyle changes can make it easier to bulk up on emergency savings

These five lifestyle changes can make it easier to bulk up on emergency savings  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, AUG 25, 2021 YOUR WEALTH Editor's Note Can you afford a $400 emergency expense right now? If the answer is "no," you are far from alone. Sadly, about 40% of Americans would struggle to come up with 400 bucks to pay for an unexpected bill, according to a Federal Reserve report. If — or, more likely, when — someone is confronted with such an expense, they would most likely have to borrow money from family or friends or tap their credit card, which means taking on more debt. That's why creating an emergency fund is such a critical tool for financial security – a fact that was reinforced for many when the coronavirus pandemic tested their ability to weather an economic storm. That emergency fund will allow you to handle living expenses a few months if you lose your job or if something unexpected comes up that costs a big chunk of money to cover. For instance, unforeseen medical expenses, home-appliance repair or replacement, or major car fixes. Why do you need an emergency fund? Emergency funds create a financial buffer that can keep you going in a time of need without having to rely on credit cards or high-interest loans. Where do you put that emergency fund? Typically, emergency funds should be held in a savings or money market account with easy access. Because an emergency can hit at any time, having quick access is key. So it shouldn't be tied up in a long-term investment fund. So, how much do you need to save in an emergency fund? The target amount to save varies depending on the individual or a family's expenses and risks. Most financial experts advise people to save enough to cover three to six months' of expenses in an emergency fund. Keep in mind that emergency fund is not your personal money piñata. You don't get to crack it open for any seemingly urgent need. Therefore, it must be a big deal to tap that fund, like serious health-care issues, emergency surgery, losing your job, or if you cannot make rent or mortgage. For more cool stuff like this, please follow me on Twitter @shortingwallst and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia Money Editor @JIMPAVIA These five lifestyle changes can make it easier to bulk up on emergency savings Setting aside three to six months' worth of living expenses may sound like a high hurdle. These changes to the way you handle your money can make it easier. More 401(k) plans are adding Roth accounts — but investors aren't following About 75% of 401(k) plans allow for Roth contributions. But the share of savers using Roth accounts is stubbornly low, according to retirement experts. 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This lesser-known tax credit may offer working families a bigger write-off this year Working families may claim another write-off in 2021 with the enhanced child and dependent care tax credit. Here's what to know about the boost. Op-ed: Sector leadership is in flux. How investors can navigate a directionless market Half of young investors invested their stimulus money, CNBC survey finds. Here's where they put it. Newer and younger investors were more likely to invest their stimulus money into assets such as individual stocks and cryptocurrency. Ask yourself this: Why wouldn't it go to $100,000? "Can you think of a reason for why bitcoin wouldn't go to $100,000? Don't say because it's worthless, it's clearly worth over a trillion U.S. dollars to lots and lots of people ..." CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2021 CNBC LLC. 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