Emergency Fund Calculator

Find out how much you need as a safety reserve

Publicidade

Rent, bills, food, transportation, etc.

Entertainment, non-essential purchases, etc.

Children, spouse without income, elderly parents

Amount already reserved for emergencies

What is an Emergency Fund?

An emergency fund is a financial reserve to cover unexpected expenses or periods without income. It's the foundation of any healthy financial plan.

Without this reserve, any unexpected event can turn into debt.

What is it For?

Cover expenses during unemployment

Health emergencies

Urgent repairs (car, house)

Family emergencies

Take advantage of unexpected opportunities

How Much to Save?

The general rule is 3 to 12 months of expenses, depending on your situation:

  • 3-6 months: Stable income (employee), no dependents
  • 6-9 months: Moderate income, with dependents
  • 9-12 months: Variable income (freelancer, business owner)
  • 12+ months: High instability, sole provider

Where to Keep It?

The fund needs to have:

  1. 1

    Liquidity: Immediate access to the money

  2. 2

    Safety: No risk of loss

  3. 3

    Some return: At least beat inflation

Recommended Options

Recommended Options

High-yield savings account

Money market funds

Short-term CDs (with no penalty)

Treasury bills

Avoid

  • Regular savings (very low return)
  • Stocks or risky funds
  • Investments with lock-up periods

How to Build Your Fund

  1. 1

    Set a target amount using the calculator

  2. 2

    Start small - you don't need to save it all at once

  3. 3

    Automate monthly transfers

  4. 4

    Keep it separate in a dedicated account

  5. 5

    Don't touch it without real need

What IS and ISN'T an Emergency

Job loss

Illness or accident

Urgent car repair (if needed for work)

Structural home problem

  • Flash sale
  • Last-minute trip
  • Phone upgrade
  • Holiday gifts

Frequently Asked Questions

Can I start investing before having the reserve?

Not recommended. The reserve is priority. Without it, any unexpected event can become debt.

Should I use the fund to pay off debt?

Depends. High-interest debts (credit cards) should be priority. Keep a minimum 1-2 month reserve while paying off.

What if I use part of the fund?

Replenish as soon as possible. Resume saving until you reach the ideal amount again.

Should the fund earn returns?

Yes, but liquidity and safety are more important than returns.

Should couples have joint or separate reserves?

Can be joint if financially united. The important thing is having the total adequate amount.

What if my income varies a lot?

Consider the average of the last 12 months as a base. And increase the reserve to 12 months.

Do I need to update the amount?

Yes, review annually or when changing jobs/having children/getting married.

Does regular savings work as a reserve?

It can work for liquidity, but returns are very low. Prefer high-yield accounts or money market funds.

Emergency Fund Calculator | FinTools