Make a budget and an emergency fund
A budget compares what comes in each month with what goes out. It shows where your money goes and what is left for an emergency fund and your plans.
Updated on October 30, 2026 · 1 min read
Make your budget in four steps
- Start from your monthly take-home pay, after tax and deductions. If you do not know it, estimate your take-home pay.
- List your expenses: housing, groceries, transportation, insurance, debt, leisure. For a yearly expense, divide it by 12.
- Spot the essential expenses, the ones you must pay no matter what.
- Compare: what is left can go to savings or paying down debt. A negative balance shows where to adjust.
The 50/30/20 guideline
A common guideline splits take-home pay between needs, wants and savings. It is not a rule: depending on your rent, your debt or where you live, other shares may be more realistic. Our tool lets you adjust them.
The emergency fund
It is money set aside for an unexpected expense or a loss of income. The Financial Consumer Agency of Canada suggests, ideally, the equivalent of 3 to 6 months of regular expenses, in a savings account separate from your everyday account.
The right amount depends on your situation: how stable your income is, dependants, insurance. The FCAC suggests starting with a small amount so you do not get discouraged.
Emergency fundHow many months of essential expenses your reserve covers.Open the calculatorYour savings goals
For a project (a trip, a down payment, a car), set an amount and a date: you see the monthly contribution needed and whether your budget allows it. For a first home, see also the FHSA.
Savings goalsCheck whether your goals are on track and what they need each month.Open the calculatorOpen the calculator
Related guides
Official sources
Educational estimate — not advice.