How much ideal emergency fund should we have?

[Suba]

When we prepare a budget, an emergency fund is one of the posts that should not be missed, how important an emergency fund is so that we must allocate 10%-20% of our income every month and a time period or deadline where we can stop allocating some of our income to an emergency fund. . So how do we calculate the total emergency fund we should have?

 

[Starmix]

In my case, I do not count how much would I allocate for the emergency fund. I just included it as part of my savings program. It seems a good idea to allocate a certain percentage for that purpose. I may take a consideration of it.

 

[Suba]

@Starmix, Whatever it means, you have implemented a budget well or allocated a portion of your income, then you just need to adjust it to your financial conditions and monthly needs. Emergency funds cannot be predicted when they will be needed or used because they are only used to finance events that we never want.

 

[Starmix]

That's a very impressive thought. I don't have idea about a certain allocation of an emergency fund. It's not late to do it. I will open an emergency account in the bank.

 

[aninditasen]

When we prepare a budget, an emergency fund is one of the posts that should not be missed, how important an emergency fund is so that we must allocate 10%-20% of our income every month and a time period or deadline where we can stop allocating some of our income to an emergency fund. . So how do we calculate the total emergency fund we should have?

I keep my emergency fund into my savings and it's very difficult to estimate an emergency fund. All depends on the severity of the crisis we face.

 

[Suba]

I keep my emergency fund into my savings and it's very difficult to estimate an emergency fund. All depends on the severity of the crisis we face.

Economic crises often disrupt our finances, making them even more shaky. In my opinion, that's still very good and a sign that your finances are still healthy because there is still a surplus between income and expenses, even though you still keep an emergency fund in your savings.

 

[aninditasen]

Economic crises often disrupt our finances, making them even more shaky. In my opinion, that's still very good and a sign that your finances are still healthy because there is still a surplus between income and expenses, even though you still keep an emergency fund in your savings.

I don't have any surplus after managing all the expenses.

 

[Abdulhamid01]

I don't have any surplus after managing all the expenses.

I understand your situation, this is relatable but then you can still try to save even a little every time you spend by cutting off excesses when purchasing .

 

[Kirubel]

I think it is difficulty to know how much fund we need for the rainy days, all we can do is save some percent of money from our incomes.

 

[aninditasen]

I understand your situation, this is relatable but then you can still try to save even a little every time you spend by cutting off excesses when purchasing .

I have started saving but not much.

 

[Abdulhamid01]

I have started saving but not much.

Okay, that's thoughtful, there is a feature on my mobile banking app that allows me save a certain percentage anytime I spend money.

 

[Suba]

Even though we don't have a formal formula for determining the amount of an emergency fund, we do have a benchmark for calculating the ideal emergency fund that we can apply to each person depending on the amount of expenses each month. If
Single status ideally 3 times, spending every month.
If you are married and don't have children, ideally 9 times, spending every month
Married, has one child, 12 times expenses per month.

 

[freelancermaria]

I save as much as I can because I know how it feels not to have an emergency fund. I was confined in the hospital for a few days and I had to borrow money to pay for my bills when I was younger. It is best to be ready all the time.

 

[Suba]

I save as much as I can because I know how it feels not to have an emergency fund. I was confined in the hospital for a few days and I had to borrow money to pay for my bills when I was younger. It is best to be ready all the time.

True, we must have an emergency reserve fund, so that when needed we have funds ready to be used for all urgent needs, but we don't need to save as much as you can so that other needs are not met, save in a balanced manner which is important to do regularly.

 

[neurosurgeon]

As much as possible you can never be too safe and it is always better to be safe than sorry.

 

[deucher]

I try to save 5 percent of my salary every month just for emergencies. I need to accumulate enough funds so that I can live for a year without working and use only these funds and then it will be enough, but after that I just plan to reduce the interest to 1 per month

 

[Suba]

I try to save 5 percent of my salary every month just for emergencies. I need to accumulate enough funds so that I can live for a year without working and use only these funds and then it will be enough, but after that I just plan to reduce the interest to 1 per month

That's good, if you have saved 5% of your monthly salary just for an emergency fund, so if you want to be able to live for a year without working, that means you have to collect 12X (multiplied) your monthly expenses and this is the fund you need.

 

[Augusta]

I don't think this can be estimated correctly but for me I would write that we just continually keep money away daily to have funds for emergencies

 

[eLdavis]

To be honest I don't really do much calculations when it comes to things like this, cause this has never really been my strong suit. I just simply save as much as I can.