What Is Emergency Fund?
Savings set aside to cover essential costs during unexpected events.
Definition
An emergency fund is money kept in an accessible account to cover essential expenses (rent, food, utilities, debt payments) if income stops due to job loss, illness or other unexpected events. Common guidelines suggest 3–6 months of essential expenses. People with dependants or variable income often aim for more.
Related calculators
Use these tools to work with emergency fund in your planning.
Emergency Fund Calculator
Calculate how much emergency fund you need, how much you still need to save, and how long it will take to get there.
Open Emergency Fund CalculatorHow Long Can I Live on My Savings
Calculate how many months your savings would last given your current monthly expenses and any expected income.
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Your salary before taxes and deductions are removed.
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Your salary after all taxes and deductions are removed — the amount you actually receive.
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A tax paid on earned income, deducted from your salary or paid on profit.
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Compulsory contributions paid by employees and employers to fund public welfare programmes.
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