Emergency Fund Calculator
You should save about six months of living expenses to cover financial surprises life throws at you.
What is an emergency fund?
An emergency fund is basically money you set aside for an unexpected financial event.
When faced with an emergency situation, the last thing you need is to be thinking about how you’re going to manage to cover the costs that come along with it. This is why you need one!
Some of the most common emergencies people face include:
- Job loss
- Medical or dental emergency
- Dependent emergency
- Vehicle repairs or replacement
- Unexpected housing costs
- Unexpected travel expenses
You should start with an emergency fund of $500 as a minimum and work your way up to 6 months of living expenses.
Keep in mind that every person may have different emergency fund needs depending on their lifestyle and financial circumstances.