What is a strong first source for an emergency fund?

Money already leaking, like unused subscriptions or open refunds

How should the monthly transfer be set?

At an amount you can actually keep

Where should recovered money go?

Straight into the separate savings account

Which statement best explains "Recoveries start the balance"?

Refunds owed and cancelled subscriptions are money you already had.

A fixed transfer you barely notice outlasts willpower.

Separate account, not on your card.

Which statement best explains "Automation keeps it growing"?

A fixed transfer you barely notice outlasts willpower.

Single income, self-employment or dependants push toward six or more.

Set the transfer to what you actually freed, not a hopeful round number.

Labelled money is harder to spend by accident.

Which statement best explains "Prove the amount first"?

Set the transfer to what you actually freed, not a hopeful round number.

Insured deposits are protected up to the limit whatever the rate.

Refunds owed and cancelled subscriptions are money you already had.

Which of these is a mistake this lesson warns against?

Waiting to find spare money before starting

Find money already leaking from your spending

Combine one-off recoveries with a monthly transfer

Which of these is a mistake this lesson warns against?

Setting a transfer too large to keep

Find room in your budget for an emergency fund: test your skills

Your fund lives at your bank. The money to fill it is usually already hiding in your own spending. Answer each question to see the explanation; your score appears at the end.

This test checks that you can

Find money already leaking from your spending
Combine one-off recoveries with a monthly transfer
Track progress month by month

Read the lesson first

9 questions

0 of 9 answered · 0 correct

Practice
1. What is a strong first source for an emergency fund?
Practice
2. How should the monthly transfer be set?
Practice
3. Where should recovered money go?
Key idea
4. Which statement best explains "Recoveries start the balance"?
Key idea
5. Which statement best explains "Automation keeps it growing"?
Key idea
6. Which statement best explains "Prove the amount first"?
Action plan
7. In the action plan, which step comes first?
Mistake to avoid
8. Which of these is a mistake this lesson warns against?
Mistake to avoid
9. Which of these is a mistake this lesson warns against?

Bonus problem · not scored

You start with a $120 refund and add $140 a month. After how many monthly transfers do you pass $1,000?

Show the answer

After 7 transfers ($1,100)

Need $880 more. $880 ÷ $140 = 6.3, so 7 transfers. $120 + 7 × $140 = $1,100.

Put it into practice today

Find one subscription you have not used in a month. Cancel it and move that amount to savings today.

Emergency fund and savings

More tests in this bootcamp