Building an Emergency Cash Reserve When You Live Alone

With no second income to fall back on, a cash reserve is your most important safety net. It keeps a surprise – a roof leak, a medical bill, a car breakdown – from becoming a crisis.

How big should it be?

Most people keep 3-6 months of expenses. Solo seniors should aim for the top of that range – 6 months – because recovery can take longer alone.

Where to keep it

• A separate high-yield savings account (easy to reach, not locked up).
• NOT the stock market – you may need it exactly when prices drop.
• Not under the mattress – you lose the interest that fights inflation.

How to build it

• Start with one month, then add a little each month.
• Send tax refunds or gift money straight to the reserve.
• Use the Retirement Budget Calculator to find the monthly amount.

Tie it together

Pair this with the Emergency Planning Document so others can help if you cannot.