“I want to save for the future, but prices keep rising and it’s hard to build savings.”
“I’m interested in investments like the new NISA, but is it true I need emergency savings first?”
Do these worries sound familiar?
In 2026, amid ongoing economic uncertainty, the strongest weapon to protect your family’s livelihood isn’t sophisticated investment strategies—it’s defensive savings called “emergency funds.”
This article explains everything from the fundamental purpose of savings, the latest recommended amounts by household type, to “automatic saving systems that work without relying on willpower.”
1. Why Savings Matter: The Role of “Emergency Funds”
Savings can be broadly categorized into two types.
- “Savings for spending”: Education expenses, home purchase, travel, etc.
- “Savings for protection”: Money set aside for unforeseen circumstances = Emergency fund
Three Reasons Why Emergency Savings Are Essential
Life comes with unavoidable risks, no matter how careful you are.
Sudden unemployment or income loss
Prepare for company downturns, job displacement by AI, and economic fluctuations.
Illness or injury
Cover not just medical costs, but living expenses during periods of inability to work.
Unexpected expenses
Appliance breakdowns, car repairs, or unplanned costs like weddings and funerals.
Mental Stability is the Greatest Benefit
The greatest strength of having emergency savings is the peace of mind that comes with knowing, “Even if something happens, I can survive for several months.”
Without this cushion, you risk narrowing your life choices—like rushing into a job at an exploitative company or turning to loan sharks.
2. How Much Should Your Emergency Fund Be? [2026 Household Simulation]
Considering 2026’s price levels, a general guideline for emergency funds is “3 to 12 months’ worth of monthly living expenses.”
Compare this to your own household situation.
| Household composition | Estimated Preparation Period | Estimated Amount (for reference) |
| Single/Living alone | 3 to 6 months’ worth | ¥500,000 to ¥1,000,000 |
| Dual-income couple | three months’ worth | ¥800,000 to ¥1,500,000 |
| Couple (one-income household) | 6 months to 1 year’s worth | ¥1.5 million to ¥3 million |
| households with children | 6 months to 1 year’s worth | 2 million yen to 4 million yen |
💡Points to Note Regarding Work Arrangements
Freelancers and the self-employed have less public security (such as sickness benefits) compared to company employees. They are also more vulnerable to economic downturns, so it is advisable to have at least one year’s worth of savings set aside.
3. Don’t Give Up! 3 Tips for Efficient Saving
If you think, “I know I should save, but I can’t stick with it,” solve it with “systems” rather than willpower.
① Automate “Pre-emptive Saving”
Thinking “I’ll save whatever’s left after payday” means you’ll never save anything.
Set up automatic transfers to your emergency fund account on payday.
Living as if that money never existed is the fastest route to success.
② Thoroughly Review Your Fixed Expenses
Instead of pinching pennies on groceries, focus on fixed costs. Reviewing these once yields lasting savings.
- Mobile Phone Plans
Switch to new rate plans or budget SIM cards. - Subscriptions
Cancel unused gym memberships and video streaming services you never watch. - Insurance
Understand the High-Cost Medical Expense System and streamline unnecessary riders and excessive private insurance.
③ Create a dedicated online savings account
If you keep it in the same account as your living expenses, you’ll inevitably dip into it thinking, “Just this month…”
Isolate your emergency fund in an online bank you don’t use daily (like UI Bank or Rakuten Bank).
With interest rate competition heating up in 2026, simply choosing a bank with higher regular savings interest rates boosts efficiency.
4. When is the right time to start investing (NISA)?
While there’s a growing sentiment that “not investing is a loss,” investing without emergency savings is like walking a tightrope without a safety net.
We recommend the following steps:
- Step 1
First, save one month’s worth of living expenses as your “absolute top priority.” - Step 2
Start investing small amounts (from ¥5,000) to gain experience while gradually building up your emergency fund. - Step 3
Once you’ve saved three months’ worth of living expenses, shift your focus fully to investing.
First, securing your foundation is the first step toward building resilient assets that won’t panic during market crashes.
Summary: Start saving even just 1,000 yen today for your “defensive fund.”
Your emergency fund is the ultimate shield protecting your freedom and decision-making power.
You don’t need to aim for 1 million yen right away.
Why not start this month by transferring even 5,000 yen or 10,000 yen into a dedicated account?
“How much would three months of your current living expenses amount to?”
Why not start by calculating that amount and jotting it down?
