An emergency fund is money reserved for essential, unexpected costs such as a job interruption, urgent repair or medical expense not fully covered by insurance.
Choose a practical target
Estimate essential monthly expenses and consider income stability, dependants and insurance. A common starting range is several months of necessities, but the right amount is personal.
Prioritise access and safety
This money should be easy to access and should not depend on a volatile market price. Separate it from everyday spending and review nominees and account access.
Refill after use
If you draw from the fund, make rebuilding it a priority. A strong buffer can help long-term investments remain invested during difficult periods.