Emergency Fund Calculator
Calculate how much emergency savings you need and create a plan to build your financial safety net.
Emergency Fund Assessment
Calculate your recommended emergency fund size
Savings Plan Calculator
Calculate monthly savings needed to reach your goal
Emergency Fund Guidelines
How much should you save for different situations?
3 Months of Expenses
Minimum recommendation
- • Stable job with dual income
- • Low risk of job loss
- • Good health insurance
- • Strong family support system
6 Months of Expenses
Standard recommendation
- • Single income household
- • Moderate job security
- • Some variable income
- • Average health and insurance
12+ Months of Expenses
Conservative approach
- • Self-employed or gig worker
- • Volatile industry
- • Chronic health conditions
- • High-risk profession
What Qualifies as an Emergency?
Understanding when to use your emergency fund
✓ True Emergencies
- •Job loss or significant income reduction
- •Major medical expenses not covered by insurance
- •Essential home repairs (roof, plumbing, HVAC)
- •Major car repairs needed for work commute
- •Family emergency requiring immediate travel
- •Natural disasters and unexpected relocation
✗ Not Emergencies
- •Vacations and leisure travel
- •Christmas gifts and holiday expenses
- •Wedding costs and celebrations
- •Sale items and "great deals"
- •New appliances when current ones work
- •Investment opportunities
Where to Keep Your Emergency Fund
Best places to store emergency savings for quick access
High-Yield Savings
Best overall option
- • FDIC insured
- • Higher interest rates
- • Easy access
- • No fees typically
Money Market Account
Good alternative
- • FDIC insured
- • Check writing ability
- • Competitive rates
- • Higher minimums
Short-Term CDs
For portion of fund
- • Higher rates
- • FDIC insured
- • Penalties for early withdrawal
- • 3-12 month terms
Avoid These
Too risky or inaccessible
- • Stock market
- • Cryptocurrencies
- • Retirement accounts
- • Long-term CDs
Pro Tip: Use Multiple Accounts
Consider keeping 1 month of expenses in checking for immediate access, 2-3 months in high-yield savings for quick access, and remaining funds in money market or short-term CDs for slightly higher returns.
How to Build Your Emergency Fund
Getting Started
- Start with a small goal - even $500 is better than nothing
- Open a separate high-yield savings account
- Set up automatic transfers from checking
- Use windfalls (tax refunds, bonuses) to boost fund
- Gradually increase your savings rate over time
Ways to Save More
- • Cancel unused subscriptions
- • Reduce dining out frequency
- • Shop with a list and stick to it
- • Consider a side hustle for extra income
- • Sell items you no longer need
- • Negotiate bills (insurance, utilities)
Remember: Progress Over Perfection
Building an emergency fund takes time. Focus on consistency rather than the amount. Even $25-50 per month adds up over time and creates a valuable habit.
Frequently Asked Questions
Should I build an emergency fund before paying off debt?
Start with a small emergency fund ($500-$1000) first, then focus on high-interest debt. Once debt is paid off, build your full emergency fund. This prevents you from going further into debt during emergencies.
How often should I use my emergency fund?
Ideally, rarely. If you're dipping into it monthly, you may need to adjust your budget or increase your income. The fund should be for true emergencies, not regular budget shortfalls.
What if I can't save much each month?
Start small - even $10-20 per month helps build the habit. Look for ways to reduce expenses or increase income. Consider putting tax refunds, bonuses, or gift money directly into your emergency fund.
Should I invest my emergency fund?
No. Emergency funds should prioritize liquidity and safety over returns. Keep it in savings accounts, money market accounts, or very short-term CDs. You need to access this money quickly without risk of loss.