Emergency Fund Calculator

Why You Need an Emergency Fund

An emergency fund is your financial safety net for unexpected expenses like job loss, medical emergencies, car repairs, or home maintenance. Without one, you may be forced to use high-interest debt or sell investments at a bad time.

How Much Should You Save?

• 3 months: Minimum for stable jobs with dual income
• 6 months: Standard recommendation for most people
• 9-12 months: If self-employed, single income, or unstable industry
• 12+ months: If in high-income job that takes time to replace

What Counts as an Emergency?

• Job loss or income reduction
• Medical or dental emergencies
• Essential car or home repairs
• Unexpected travel for family emergency

What is NOT an Emergency

• Vacation or travel (budget separately)
• Holiday shopping
• Regular maintenance you can predict
• Wants vs needs

Where to Keep Your Emergency Fund

• High-Yield Savings: Best option - liquid, FDIC insured, earns interest
• Money Market Account: Similar to HYSA, may have check-writing
• Short-term CDs: Slightly higher rates, less liquid
• NOT Investments: Too volatile for emergency money

Tips for Building Your Fund

• Automate transfers on payday
• Start with $1,000 mini-emergency fund
• Redirect windfalls (tax refunds, bonuses)
• Cut one expense and save the difference
• Sell unused items