i What this calculator does
An emergency fund is the buffer that stops a bad month becoming a forced sale. It is the reason a market fall is an inconvenience rather than a crisis, and the standard guidance is that it comes before any trading or investing account is funded.
How many months you need depends on how replaceable your income is. A salaried employee with one income needs less than a self-employed trader with variable earnings and dependants.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
Frequently asked questions
How many months should an emergency fund cover?
Three months is the common floor for someone salaried with a stable employer. Six is more appropriate for variable income, and nine or more for a self-employed single-income household. The calculator adjusts for dependants as well, because each one raises the cost of a disruption.
Should the fund be in cash or invested?
Cash or a money market fund, in an account you can access within a day or two. The point is certainty of value, not return. Investing the fund defeats its purpose, because the moment you need it is often exactly when markets are down.
Should I build the fund before I start trading?
That is the conventional order, and the reason is practical rather than moral. Without a buffer, a car repair or a lost month of income has to come from the trading account, which forces you to close positions at whatever price is available rather than at your plan's exit.
Does high-interest debt come first?
Usually yes, above a minimum buffer. Debt at 18% or more costs you more with certainty than any investment reliably earns. A common approach is a small starter buffer of one month, then clear expensive debt, then complete the fund.
Where should I keep it?
A money market fund or a notice account gives a reasonable rate with quick access. With the repo rate at 7.25%, cash is earning meaningfully more than it has for some time, which reduces the cost of holding a buffer.
Does a credit facility count as an emergency fund?
No. A facility is borrowing, which has a cost and can be withdrawn by the provider at the moment you most need it. Access to credit is a useful backstop behind a fund, not a substitute for one.
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