Emergency Fund Calculator

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Calculate three to six months’ worth of expenses with the emergency fund calculator.

(Psst… Give a moment for the calculator to upload.)

How to use the emergency fund calculator

Calculate the amount you’d need to save to create a three-month and a six-month emergency fund.

1) Estimate your essential living expenses for one month.

Insert the estimated amounts in the fields:

  • Housing (rent or mortgage payments)
  • Utilities (electricity, water, gas)
  • Other bills (f.ex. phone, internet, medical)
  • Transportation (car payments, gas, public transportation)
  • Insurance (f.ex. health, home, car)
  • Groceries/Household items (estimate how much you usually spend on groceries and household items like toilet paper, soap, etc.)
  • Debt payments (f.ex. student loans, other loans, credit cards)
  • Other Expenses (estimate other essential expenses)
  • Buffer – this is optional (assign amount for unexpected expenses)

2) Totals (1 month, 3-months and 6-months)

The calculator will automatically calculate the total amount of your essential expenses for one month.

It will then give you the amount you should save to create an emergency fund for three or six months‘ worth of essential expenses.

Disclaimer: The content provided is for informational purposes only and should not be considered financial advice. Consult a financial professional for personalized guidance on budgeting and managing your finances. 

What is an emergency fund

An emergency fund (also known as a rainy day fund) is a sum of money set aside to provide financial security, cover unexpected expenses, or cover income loss.

Why have an emergency fund

An emergency fund acts as a financial safety net in case of emergencies such as job loss, medical emergencies, or major home repairs. It can prevent you from going into debt or taking out high-interest loans in times of crisis.

How much should you save to create an emergency savings fund

The general rule of thumb is to save 3-6 months’ living expenses in your emergency fund.

But you can start by saving 1000$ to create a small emergency fund and work your way up to 3-6 months’ worth of monthly expenses.

Where to keep your emergency fund

Your emergency fund should be easily accessible in an emergency but not so easy that you’ll be tempted to use it for non-emergencies.

You can keep it in a traditional savings account (connected to your checking account), a high-yield savings account, or a money market account.

When to use your emergency fund

Your emergency fund should only be used for true emergencies, like job loss, medical expenses, or unexpected home repairs. It’s essential to replenish the fund after using it and not to use it for non-essential purchases.

How to build your emergency fund

You can start by setting a goal of saving a certain amount each month until you reach your desired 3-6 months’ worth of living expenses.

You can also set aside any extra income (such as bonuses or tax refunds) towards your emergency fund.

How do I calculate my emergency fund

The best way to calculate your emergency fund is by using an emergency fund calculator.

It allows you to estimate your essential expenses accurately and gives you a specific amount to save based on your financial situation.

It’s important to regularly reassess and adjust your emergency fund as your expenses and income may change over time.

How much is 3-6 months of essential expenses?

To calculate how much you would need to save for an emergency fund, multiply your monthly essential expenses by 3 or 6.

For example, if your monthly essential expenses amount is $3000, a three-month emergency fund would be $9000, and a six-month emergency fund would be $18000.

Remember, this is just a general guideline, and your situation may require more or less than the recommended amount.

So, estimate your essential expenses and use an emergency fund calculator to determine the right amount.

Tips for building and maintaining an emergency fund

  • Set financial goals: Set a realistic savings goal and create a budget to help you reach it.
  • Automate and save money regularly: Make saving automatic by setting up recurring transfers from your checking account to your savings accounts (or money market accounts). This way, you’ll consistently save money without even having to think about it.
  • Cut expenses: Look for areas where you can reduce costs, such as eating out less or canceling subscriptions. Every little bit counts towards building your emergency fund.
  • Reassess and adjust: Regularly reevaluate your emergency fund to ensure it still aligns with your current financial situation and adjust accordingly. Personal finance is not a one-size-fits-all approach, so make sure your emergency fund fits your unique needs.
  • Use windfalls wisely: When you receive unexpected income (such as a bonus or tax refund), don’t immediately spend it – put at least a portion of it into your emergency fund.
  • Use ONLY for real emergencies: Tap into your emergency fund only when it’s a true emergency and replenish it as soon as possible.

By following these tips and using an emergency fund calculator, you can feel more at ease and build a solid safety net to cover your financial obligations, helping you handle any unexpected challenges that come your way.

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Printable Emergency fund trackers

Check out these cute printable emergency fund savings trackers. You can find them in this post:

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other free budgeting sheets & savings trackers

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