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Emergency Fund

Works out how large an emergency fund to hold based on expenses.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

$3,000/month of essentials with 6 months' cover is $18,000.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

Target = monthly essentials × months of cover.

Rechenbeispiel

$3,000/month of essentials with 6 months' cover is $18,000.

Häufige Fragen

How many months?

Three to six is common; more if income is variable.

Where to keep it?

Somewhere safe and easy to access.

Tipps

  • Automate deposits so saving happens by default.
  • Keep an easy-access emergency buffer separate from goals.
  • Chase a competitive rate — the gap compounds.

Begriffe

APY
Yearly rate including compounding.
Liquidity
How easily you can access funds.
CD
A fixed-term deposit.