In This Economy, What Even Is a “Realistic” Emergency Fund? We Asked An Expert

For many of us, the beginning of the year is an opportunity to reset our mindset. We resolve to change our habits and are determined that this will be the year we save and create that financial cushion for rainy days. But we all know how difficult it becomes after the first few weeks. Who can really create a realistic emergency fund in this economy?

Well, to try to solve the problem at its root this year, we consulted our favorite financial expert, Gigi González. And boy, did she change our perspective!

Here’s what she told us:

What would a “realistic” emergency fund look like in 2026?

For millions of Latinas who live paycheck to paycheck and are most likely the primary financial source for their households, the classic “3 to 6 months” rule hardly applies. And Gigi knows it.

“From experience, I know how overwhelming it can feel to be told that you need to save three to six months of expenses. Especially when you’re living paycheck to paycheck while trying to support your family,” she told us. “If you’re barely getting by, that number can feel impossible. But it’s important to remember that an emergency fund is built over time, not overnight. The goal isn’t to magically have months of expenses saved tomorrow. It’s about getting clear on what your ideal savings target is and coming up with a plan to meet that goal. And making consistent progress.”

And our advisor refers us to the data. According to Intuit’s financial wellness survey, 93% of Americans say, like us, that they plan to change the way they manage their money in 2026. The first thing that comes to mind is, obviously, creating a small safety net. And it turns out that it is possible.

However, according to Gigi, “the right number for you depends on things like job security and whatever it takes for you to sleep soundly at night.”

Where do we start?

Gigi recommends starting with a goal of about two months’ worth of basic expenses. This includes rent, bills, and basic needs such as groceries.

“Two months of expenses should help get you out of most financial emergencies, like getting laid off, a sudden move, or a major repair without immediately forcing you to take on debt,” she explains. “With 52% of Americans stating that the high cost of living is their top financial stressor, even a small cushion can create some peace of mind and relief for life’s unexpected costs.”

What does a financial safety net look like for women of color?

As women of color, we are more likely to be the financial safety net for parents, siblings, or children. So how do we do it?

According to Gigi, the first thing is to recognize that, as individuals, we have the ability to decide “how and when to support our family.”

“Many of us are raised to automatically become the safety net, without ever being told it’s okay to build our own first,” she explains.

“Taking care of family is an important value to a lot of us, but it shouldn’t come at the cost of our own financial wellness. Our individual needs matter too, so focus on stabilizing your personal finances first. Once your foundation is strong, you can show up for family in ways that don’t derail your future. If you still want to support your family but don’t have the financial means, remember support can also look like sharing time, knowledge, or helping them access resources or programs they may qualify for.”

Gigi adds: “If you do have the financial stability to help extended family, then create a separate emergency fund for them and keep your personal emergency fund reserved for you. You can’t pour out of an empty cup.”

Strategy 2026: Balancing Savings and Debt

It’s nice to think about creating a financial cushion without debt. But the reality is very different for most of us. So what do we do? Gigi recommends “creating an emergency fund first.”

“Without one, an emergency expense can dig you into even deeper debt. The goal isn’t to juggle everything at once, but to build a stable base so one setback doesn’t undo all your progress,” she adds. “Once you have that basic cushion, you can get more aggressive with debt payoff. A simple rule of thumb: prioritize the debt with the highest interest rate first.”

Finally, how do we navigate the economic and political reality while keeping our goals in mind?

Let’s be honest, the political reality of the country and, consequently, the economic reality has us all on the edge of our seats. The instability and violence against our community puts us on alert 24/7. And this, obviously, affects our finances.

But let’s not despair. Gigi has a roadmap for us:

“A common mistake right now is using your personal emergency fund to support extended family costs as a first resort,” she explains. “I understand the instinct to protect loved ones, but that money is meant to protect your own stability. If you ever have to dip into it for family, make replenishing it your top priority.”

According to Gigi, in 2026, a high-yield savings account is still one of the best homes for an emergency fund. It earns interest while staying fully liquid and accessible when you need it. “Some people also like keeping a small amount of cash at home for peace of mind, but I don’t recommend exceeding $500, since cash can be lost or stolen,” she adds.

“Intuit’s resources, experts, and insights can also help people stay organized and informed to feel more in control of their overall financial picture, including tools like TurboTax, QuickBooks, and Credit Karma.”

What about you? Are you ready to take charge of your financial health?