Emergency Fund, Step by Step
By s k y l e r · Published · Updated
Works out your emergency fund target, a monthly saving pace, and where to keep the money, with milestones along the way.
Tags: Savings, Finance, Planning
Prompt template
## Emergency Fund Plan Help me build an emergency fund from scratch. - Essential monthly expenses: [text: Rent and food and bills and minimum debt payments] - Income stability: [dropdown: Very stable, Fairly stable, Unpredictable, Freelance or variable] - Amount I can save each month: [text: A realistic figure] - Country: [text: Where you live] Set the target in months of essential costs: about three for very stable income, rising to six or more for unpredictable or freelance income. Multiply by my expenses to give a number. Check the pace against my monthly amount and give the timeline in months, with two or three milestones worth celebrating along the way. Recommend the kind of account to keep it in for my country: instantly accessible within a couple of days, safe, and earning something, without naming a specific bank. If the target is more than two years away at this pace, say so and suggest what to adjust, such as a smaller first goal or a lower expense line.