An emergency fund is a special stash of cash that you stock away specifically to cover unexpected expenses. For example, you might use an emergency fund to cover car repairs after an accident or to cover living expenses after a job loss or illness rears its ugly head.
Since it’s essentially like insurance against the curveballs life will throw at you, putting together an emergency fund is one of the smartest financial decisions you can make in life.
But how much should you have saved for that rainy day? This calculator helps you figure it out.
How much should I have saved in my emergency fund?
The size of your emergency savings depends on your monthly expenses and how hard it might be to replace your income.