Savings goals and your emergency fund

Savings envelopes hold money for things that matter to you: an emergency fund, a vacation, your next car. Each one has a monthly deposit and, if you like, a goal.

The target beside an envelope's note button shows its goal: green when it has one, grey when it doesn't. Point at it to see the goal and how much you've saved, or click it to set or change the goal. On a wide screen, Savings goals beside your budget shows each one's progress.

Start with an emergency fund

An emergency fund is cash set aside for surprises: a car repair, a medical bill, a job change. It's what keeps a bad month from turning into new debt.

• First: a starter fund of about $2,500.
• Then: three to six months of living expenses.

The Emergency fund page works out your target from your own budget and shows when you'll reach it.

Seeing your progress

At the top of the page, choose Tank to see your fund as a glass tank filling with water. Each layer is one month of living expenses, so you can watch the months fill up. Point at a layer or tap it to see how much of that month is covered, and drag to turn the tank.

Your path to the goal shows your balance so far as solid bars and the months ahead as lighter bars, with a dashed line at today. It runs until you reach your goal, up to five years out. Over a longer stretch, each bar is a quarter instead of a month, so the chart stays easy to read. Try a different monthly deposit above it, and the bars move with it.

Logging the deposit

Your monthly deposit is already in the balance, because it's part of your plan. When you move the money, you can log it as a deposit on the envelope and leave the "Count it as … monthly deposit" box ticked. It won't be counted twice, and the deposit amount turns green once it's covered.

Extra money, like interest or a gift, is different. Log it as a deposit with the box unticked, and it adds to the balance. If one deposit is bigger than the monthly amount, such as a bonus you put straight in, the monthly amount covers the deposit and the rest adds to the balance.

Taking money out

Log a withdrawal from the envelope. The balance goes down, and the money doesn't come out of this month's income.

Even a small monthly deposit counts. What matters most is starting.