Make an Emergency Fund for Real Emergencies You've heard of saving for a rainy day. Well, for many, 2020 was the monsoon that refused to end. While it was a difficult year for nearly everyone, those who had an emergency fund in place at least had a temporary cushion to see them through their bleakest moments. Based on your income, try to save enough to cover at least one month of expenses in liquid savings. And to be clear, getting your kid the latest PS5 or taking that long-delayed vacation doesn't qualify as an emergency. “This should only be used for real emergencies such as issues with your house, medical bills or other true emergency situations," Brian Walsh, CFP and Manager of Financial Planning at SoFi, told NBC News.