Emergency Fund Basics

An emergency fund is cash you keep aside for surprises — medical bills, job changes, urgent travel. It lets you avoid selling investments or taking high‑interest debt when life happens.

How much do I need?

A simple rule: 3–6 months of essential expenses. If your job is less stable or you have dependents, target 6–9 months.

Where should I keep it?

Keep it liquid and safe — savings account or liquid funds. Return matters less than instant access.

How do I reach the target?

Automate a monthly top‑up. Use windfalls (bonuses, refunds) to accelerate. Review every quarter.

Ready to calculate your target and ETA? Open the Emergency Fund Planner.