Level Up Your Finances: Level Four
You have at least $500 in a dedicated high-interest savings account for use in case of emergency. *
Why It Matters
Many Canadians tap into high-interest debt like payday loans or credit cards when they run into an unexpected expense that they can’t pay off. Having even $500 can make it easier to respond to emergency repairs or required purchases. The high-interest savings account is important to make sure you are earning something on the funds, and a separate account will force you to be mindful of what counts as an emergency (e.g. NOT a super sale at your favorite store).