October 27, 2025
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
Today’s Post
How To Build Your Emergency Fund (So You’re Ready When Life Throws You a Curveball)
Picture this: your car breaks down. Or one month you lose a bit of income. Or an unexpected medical bill pops up. If you don’t have a fund ready, you’ll scramble. That’s why an emergency fund isn’t optional—it’s smart. Let’s break it down: what it is, why it matters, and how you build it step by step.
What Is an Emergency Fund?
Simply put, it’s money you set aside just in case.
It's not for your regular bills, or for that fancy vacation.
It’s a buffer you use when something goes off plan.
Experts often suggest saving 3 to 6 months’ worth of expenses so you’re covered if income stops or something big comes up.
But here’s a reality check: in the U.S., many people don’t have that buffer. For example: over 21% have no emergency savings at all.
Also: roughly 37% of Americans say they couldn’t deal with a surprise $400 expense without borrowing or other serious moves.
So you’re not alone if you’re behind—but you can take steps now.
Why It Matters (Big Time)
Here are some reasons your emergency fund is a game-changer:
Peace of mind. Knowing you have “just in case” money means fewer sleepless nights.
Less debt. If you have cash ready, you’re less likely to reach for high-interest credit cards or payday loans when trouble hits.
Better financial resilience. In one report, only 55% of adults had enough savings to cover three months of expenses; 30% said they couldn’t cover that at all.
Avoid tapping retirement. Using your retirement savings for emergencies can cost you big in terms of lost growth—but if you have cash ready, you won’t feel forced to do that.
How to Build It (Step-By-Step)
Let’s get practical. Here’s how you can build an emergency fund, even if you’re starting small.
Set a target.
Aim for building enough to cover 1 month of expenses as the first milestone.
Then work toward 3 months, and eventually 6 months (if possible).
For example: if your expenses are $3,000/month, then 3 months = $9,000.
Open a separate “just for emergencies” account.
This keeps the money separate from everyday funds so you’re less tempted to spend it.
Use a high-yield savings account if you can (to get some interest while you wait).
Automate savings.
Set something like “transfer $100/month” or “5% of income” into that account automatically.
If it happens behind the scenes, you won’t feel the pinch as much.
Slash non-essential spending and redirect it.
Review your monthly budget: what can you reduce (subscriptions you don’t use, eating out, extra services)?
Use those savings to boost your emergency fund instead of immediate “fun” spending.
Put windfalls into it.
Tax refunds, bonuses, gifts: instead of buying something nice right away, consider placing part (or all) into your emergency fund.
Only use it for real emergencies.
Define what “emergency” means for you—job loss, big unexpected repair, medical costs.
Avoid using it for “wants” or small desires; otherwise it depletes and you’re back behind.
Realistic Example
Let’s say you earn $4,000/month and your living costs are about $3,000/month.
Step 1: Your first goal = $3,000 (cover 1 month).
Step 2: Auto-transfer $200 from your paycheck into your emergency account every month.
Step 3: After 15 months, you’ll hit $3,000. Then you raise the goal to $9,000 (3 months).
Step 4: If you receive a $1,000 bonus, put $700 into the fund and use $300 for something fun.
Over time you’ll build up that cushion—and when you do, you’ll feel freer.
Things to Watch Out For
Don’t lock your emergency fund in long-term investments you can’t access when needed. Liquidity matters.
Remember: even if current interest rates on savings are low, that fund is about safety more than big returns.
If you dip into it, make a “repair plan” — replenish it, so it can do its job next time.
Final Thoughts
Your emergency fund is one of the smartest money moves you can make. > “You don’t need a huge income to build peace of mind—you just need a habit of saving.”
Start small today. One transfer. One dollar. One extra saving. Then build it up. Because when life happens—and it will—you’ll want a cushion ready so you can keep moving forward.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.