What Is Emergency Fund?
From the SB Advisors Academy money glossary · Free, no signup
A dedicated savings reserve covering 3 to 6 months of essential living expenses, kept liquid and never invested.
A worked example
Your monthly essentials are $2,500. Your fully funded emergency fund target is $7,500 to $15,000 kept in a savings account.
Category
Part of the "Banking and Savings" group in the money glossary.