Emergency Fund Calculator
Calculate how much you should save for unexpected expenses to create your financial safety net. Experts recommend saving 3-6 months of living expenses for emergencies.
Emergency Fund Target: $18,000
Based on your monthly expenses of $3,000 for 6 months.
| Amount Saved | $5,000 |
|---|---|
| Amount Needed | $13,000 |
| Months to Reach Goal | 26 months |
| Projected Completion Date | October 2025 |
About Emergency Funds
An emergency fund is a financial safety net for future mishaps and/or unexpected expenses. Financial experts recommend setting aside 3-6 months' worth of living expenses in case of emergencies like job loss, medical bills, or car repairs.
Why You Need an Emergency Fund
An emergency fund helps you:
- Avoid going into debt when unexpected expenses arise
- Handle emergencies without disrupting your long-term financial goals
- Reduce financial stress knowing you're prepared for the unexpected
- Cover living expenses if you lose your job or have reduced income
How to Build Your Emergency Fund
Follow these steps to build your emergency savings:
- Determine your target amount using this calculator
- Set up a separate savings account just for emergencies
- Automate monthly contributions from your paycheck
- Use windfalls (tax refunds, bonuses) to boost your savings
- Only use the money for true emergencies
Where to Keep Your Emergency Fund
Your emergency fund should be:
- Easily accessible (but not too easy to spend)
- In a separate account from your regular spending money
- In a low-risk account like a high-yield savings account
- Not invested in the stock market where values can fluctuate