Emergency Fund Planner
Calculate how much cash you should keep in savings for life's surprises. Having this safety net means you won't have to worry about your investments when things get tough.
Building Your Financial Safety Net
An emergency fund is cash set aside to cover unexpected expenses: job loss, medical bills, car repairs, or home emergencies. Without this buffer, you might be forced to sell investments at a loss, rack up high-interest credit card debt, or derail your financial goals. It's the foundation of any sound financial plan.
The standard advice is 3-6 months of expenses, but your ideal amount depends on your situation. Stable job with two incomes? Three months may suffice. Self-employed or single-income household with dependents? Six to twelve months provides more security. This calculator adjusts based on your specific risk factors.
Keep your emergency fund in a high-yield savings account where it's safe, accessible, and earning interest. It shouldn't be invested in stocks since you need to access it on short notice regardless of market conditions. Once funded, redirect savings toward investments.
Your Savings Goal
Keep this much in a safe account to cover your bills for 6 months.
Make your savings work harder.
High-yield accounts can earn you around 4.5% interest right now. It's safe cash that grows while you wait.
Top Accounts for your Savings
Wealthfront
Cash Account
Betterment
Cash Reserve
Expert Advice
An emergency fund is like insurance, it's not meant to make you rich, it's meant to keep you from becoming poor. Once you have this cash ready, you can invest the rest of your money with total peace of mind.
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