The emergency fund
Money set aside, easy to reach and safe, so a surprise expense or a lost paycheque doesn’t push you into debt.
The 2026 numbers
- 3
- Months of spending, Huard & Co defaultHuard & Co default, and you can change it
- 2.4%
- Expected return on cash, per year
- 2.1%
- Expected inflation, per year
Numbers checked against the official sources on September 28, 2026.
What it’s for
- Avoiding the credit card or line of credit when the car breaks down or a job ends.
- Letting your investments keep working, even when markets drop.
Who it’s for
- Everyone, before investing: it’s step one.
- An irregular income, or a single income in the household, often calls for a bigger cushion.
How it works
Huard & Co suggests 3 months of essential spending. It’s a guideline: aim higher if your job is less stable.
Keep it in a high-interest savings account, ideally inside a : the interest isn’t taxed and you can withdraw any time.
Not in stocks: an emergency fund has to be worth the same on the day you need it.
At about 2.4% a year, cash roughly keeps up with inflation (2.1%): its job is safety, not return.
An example
Essential spending of $3,000 a month
Rent, groceries, transportation, insurance. Target: 3 months.
- Emergency fund target
- $9,000
- Setting aside $250 a month
- 36 months
A partial fund is already far better than none: start small and automate the transfer.
Fictional example, round numbers.
Common mistakes
- Investing in the market before you have a cushion: a drop could force you to sell at the worst time.
- Keeping it in your chequing account: it gets spent without you noticing.
- Not rebuilding it after you use it.
In Huard & Co
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General information to help you understand, not personalized advice. Rules change: every number links to its official source.