An emergency fund helps to protect your finances when the unexpected happens - especially the loss of a job. Most experts recommend an emergency fund of between three and nine month's expenses for a worst-case scenario. But what's right for you?
The answer depends on your current spending, how much you could cut spending, and how long it may take to find a comparable job. This calculator can help you capture some of these variables and provide a savings goal to consider. Then try our Short-Term Savings Calculator to create a savings plan.
Some savings is always better than none. Even a small emergency fund may prevent credit card debt for an unexpected expense.