how to calculate how much emergency fund i should have? Can you share a formula?
Simply try using an emergency fund calculator. It is a handy tool that helped me calculate and answer the bigger question 'how much is enough?’
Proper calculation helps you estimate the right amount you should save, based on your personal lifestyle, expenses and income.
This is why using an Emergency Fund Calculator is a smart way for you to start:
- It gives you a custom savings goal based on your financial situation.
- You can calculate your fund needs for up to 36 months.
- It even shows estimated monthly returns if you plan to invest your fund.
In general, aim to save at least 3 - 9 months of living expenses. For instance, if your monthly expenses are ₹40,000, your emergency fund should be around ₹1.2 to ₹3.6 lakh.
The calculator will make it easier to set a realistic goal, track progress and stay motivated.
Think of it as your personal planner for peace of mind, helping you stay prepared, no matter what life throws your way. You can also request help from a financial expert for guidance.
Having a little money tucked away for the unexpected can make a huge difference when life takes a turn.