Financial security starts with a properly sized emergency fund. Too small forces you to sell investments at bad times. Too large wastes growth potential. Here's how to get it right.
How Much Do You Need?
- 3 months: Stable employment, dual income household, low fixed obligations
- 6 months: Self-employed, single income, or cyclical industry
- 9–12 months: Business owner, commission-based, or highly volatile sector
Calculate on Essential Expenses Only
Base the calculation on: housing, utilities, food (grocery budget), insurance, minimum debt payments, essential transportation. Exclude entertainment, dining out, and discretionary spending.
Where to Keep It in 2026
Best: TFSA High-Interest Savings Account — earns 3.5–4.5% tax-free at EQ Bank, Oaken Financial, or Peoples Bank. Instant access, no penalties, no tax on interest.
Don't use: Chequing accounts (no interest), RRSPs (taxable on withdrawal), GICs (locked in), or investment accounts (market risk defeats the purpose).
Build It Systematically
Set up automatic weekly transfers to your TFSA HISA immediately after each paycheque. At $300/week: $7,800 in 6 months. At $500/week: $13,000 in 6 months — without feeling it.