- 1). Add up cash that you store around the house. Some people keep sizable amounts, from several hundred to several thousand dollars. Exclude money you have on hand for current or upcoming expenses, such as food. Even $500 constitutes a beginning emergency fund.
- 2). Add in extra money in your checking account. Add only the amount not already budgeted for bills or for upcoming expenses such as insurance payments. This cushion also constitutes part of your emergency fund.
- 3). Add in any money you have in a savings account or bank money market account that you have not budgeted for a predictable expense, such as tuition payments.
- 4). Add in the balance in money market mutual funds. Again, don't include any funds earmarked for a specific payment in your emergency money.
- 5). Add the value of U.S. Savings bonds more than five years old. For bonds at least one year old but less than five years old, subtract three months' interest for early cashing. Log on to your account at Treasury Direct to find the cash value of your electronic bonds and interest information, or check the online Savings Bond Calculator to find information on paper bonds.
- 6). Add the value of CD accounts minus the early withdrawal penalty. If you cash these before maturity, you normally must pay a fee. Ask the savings institution how much the penalty totals, and subtract that amount from the current value on your paper or online statement. Count CDs only if you have not earmarked the money for another purpose and are willing to pay the penalty to cash them in an emergency.
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