Emergency Fund Calculator

What is an Emergency Fund?

An emergency fund is a financial safety net designed to cover unexpected expenses or income loss. It should be easily accessible and kept in a safe, liquid account.

How Much Do You Need?

• 3 months: Dual income, stable jobs, no dependents, excellent health
• 6 months: Standard recommendation for most people
• 9-12 months: Single income, dependents, unstable job, health concerns

Where to Keep Your Emergency Fund

• High-Yield Savings Account: Easy access, FDIC insured, earns interest
• Money Market Account: Similar to savings but may have check-writing
• Short-term CDs: Slightly higher rates but less liquid

When to Use Your Emergency Fund

• Job loss or income reduction
• Major medical expenses
• Urgent home or car repairs
• Unexpected travel for family emergencies

When NOT to Use Your Emergency Fund

• Vacations or entertainment
• Holiday gifts or celebrations
• Non-essential purchases
• Predictable expenses (annual insurance, car registration)

Building Your Emergency Fund

1. Start small - aim for $1,000 first
2. Automate monthly transfers to savings
3. Save windfalls (tax refunds, bonuses)
4. Reduce expenses temporarily to boost savings
5. Consider a side hustle for extra income
6. Track your progress and celebrate milestones