Calculate how much you should have saved for emergencies based on your monthly expenses.
An emergency fund is a savings buffer for unexpected expenses such as medical bills, car repairs, or job loss. Building an emergency fund ensures you have a safety net in place to cover financial surprises without going into debt.
The amount you need for your emergency fund depends on your monthly living expenses. It is generally recommended to have 3-6 months’ worth of expenses saved up. Use this calculator by entering your monthly expenses and how many months you want your emergency fund to cover.
Having an emergency fund provides financial peace of mind. In the event of an unexpected expense or a job loss, you won’t have to rely on credit cards or loans, which can lead to debt accumulation. A well-stocked emergency fund allows you to handle these situations with confidence.