Definition
Emergency fund
An emergency fund is money set aside to cover essential expenses when income stops or an unexpected cost arrives. The usual target is three to six months of essentials, and the right point in that range depends on how predictable your income is.
It is held in cash or an instantly accessible account rather than invested, because its job is availability at a fixed moment, not growth.
Tools that use this term
Emergency Fund Calculator
How many months of expenses your emergency fund covers, and what to target next.
Budget Calculator
Split your take-home pay into needs, wants and savings with the 50/30/20 guideline.
Savings Goal Calculator
How many months it takes to reach a savings target, with monthly deposits and interest.
Moving Cost Calculator
The one-off cost of moving: movers, deposits, transport and setting up again.
Can I Afford This Trip?
Test a trip against your savings and your emergency fund, and see what it leaves behind.