By: Nik Korba

Statistics show that if you’re the average American, you’ve had to deal with an unexpected expense at some point during the past year. Statistics also show that the average American who faced an unexpected expense had a hard time paying for it. According to a 2025 survey, 59 percent of Americans don’t have enough savings set aside to cover an unexpected $1,000 expense.

According to April Taylor, Founder of Jr. Moguls, the first important step is determining the appropriate size for the fund.

“When it comes to emergency funds, the key is calculating a number that is right for your specific financial situation,” she explains. “The number you’ll find when googling ‘emergency fund’ will put you in the ballpark, but not necessarily set you up to cover your personal financial issues if they arise.”

Taylor is a multi-faceted entrepreneur, speaker, and recognized financial coach whose successful financial coaching practice has helped countless clients improve their financial habits. She has empowered families nationwide by providing financial education, mindset transformation, and business development. Her Jr. Moguls platform is designed to cultivate the next generation of confident, business-minded leaders.

“For some people, $10,000 might be enough,” Taylor says. “For others, it’s a starting point — barely a month of breathing room. Until you take the time to understand what your financial landscape looks like, you won’t know what an emergency scenario will most likely require.”

Financial Coaches Say Emergency Funds Must Match Your Lifestyle

When setting a target amount for your fund, aiming too low will leave you lacking what you need to manage common emergencies without taking on new debt. Aiming too high can also create a heavy financial burden, which may ultimately cause you to lose hope and abandon the project. Finding the right amount that will meet your needs without overwhelming you requires looking at your unique financial lifestyle.

For those who struggle with personal finances, Taylor notes that connecting with a certified financial coach or financial coaching service can make the process of identifying the right amount for your emergency fund much easier. “To ensure you get sound financial guidance, make sure to seek out a financial coaching business where you can connect with a certified financial coach,” she says.

Coaching businesses specialize in providing financial counseling to those who want to improve their money management skills. They coach clients on making sound financial decisions that lead to financial empowerment.

A financial advisor who has completed financial coach training will be able to assess and address all of the nuances in their clients’ needs that play a role in financial planning. Those who have received a financial coaching certification from an accredited certification program, especially those offered by the AFCPE, will be able to provide reliable guidance.

Factors That Financial Advisors May Coach Clients to Consider

The first step a financial fitness coach or other financial professional will walk a client through when establishing an emergency fund is identifying their various financial obligations. Best practices prescribe that the emergency fund cover essential expenses for three to six months. Depending on the client’s lifestyle, the amount allocated to those expenses can vary widely, which is why a custom-tailored emergency fund target is valuable.

Taylor advises that an emergency fund should include three to six months of essential expenses to help cover any mortgage or rent, utilities, groceries, transportation, insurance, and debt payments. However, she also notes that there are complex financial factors that may need to be taken into account.

“For example, individuals who are self-employed face several factors that can make it more difficult to address financial emergencies, including income volatility, lack of traditional employee benefits, and self-employment tax obligations,” Taylor says. “I recommend setting aside at least 6 to 12 months of essential expenses in an emergency fund.”

Financial Coaches on Increasing Emergency Savings and Financial Well-Being

Once a target amount is set, the hard work of hitting that amount must be done. For those already operating on a tight budget, finding funds to allocate to an emergency fund can seem impossible.

Taylor recommends a number of steps for bulking up insufficient emergency funds, starting with automating the deposit of a portion of your paycheck into a special savings account, much like how funds are set aside for retirement planning.

“Even an amount as small as $25 a week can add up over time in a way that improves your financial well-being,” she says. “Any money received from bonuses, tax refunds, or a side hustle should be deposited into your emergency fund.”

Taylor also encourages that an emergency fund be seen as a key component of a comprehensive financial wellness plan, rather than a burden that imposes an uncomfortable level of frugality.

“Think of your emergency fund as your peace of mind fund,” she explains. “Make it emotionally purposeful and you’ll have an easier time making it a reality.”

Although no one is immune from unexpected expenses, the expert steps prescribed above can help you prepare for them by providing readily available funds. If you’re struggling to put them into action, tapping into the financial services offered by counseling and coaching professionals can help you to get your emergency fund off the ground and improve your financial health.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. Personal financial situations vary, and readers are encouraged to seek guidance from certified financial professionals or coaches before making any financial decisions. Results from financial strategies may differ based on individual circumstances.