Breakdown
How it works
An emergency fund covers job loss, medical costs or urgent repairs without borrowing or selling investments at a bad time. Three months suits dual-income households with secure jobs; six is the standard; expats on employer-sponsored visas and the self-employed should hold 9–12 because income can stop and relocation costs follow.
Formula
Worked example
Essentials 2,600 a month × 6 = 15,600 target. With 2,000 saved and 300 a month, about 45 months — consider a temporary higher saving rate.
Frequently asked questions
Where should I keep it?
Instant-access savings, ideally earning interest, in the currency of your expenses. Not invested, not in a notice account, not in crypto.
Should I pay off debt first?
Build a starter fund of one month first, then attack high-interest debt, then complete the full fund.
Why do expats need more?
Visa cancellation after job loss usually gives 30–180 days to find work or leave; gratuity may be delayed; flights, shipping and school-fee commitments add up quickly.