Emergency Fund
Set an emergency-fund target by multiplying your essential monthly expenses by the number of months of cushion you want. Most planners suggest three to six months.
Try it now
Worked example
Target: $19,200.00
How it’s solved
Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.
- An emergency fund is a cushion of several months of essential expenses set aside.
- Monthly expenses × months of cushion
$3,200.00 × 6 = $19,200.00
Learn the method
Inputs
- Monthly $
3200 - Months
6
Frequently asked
How many months should I save?
Three to six months of essential expenses is the common rule; go higher if your income is variable or you're self-employed.
What expenses count?
Use essential spending — housing, food, utilities, insurance and minimum debt payments — not discretionary extras.