Do You Have Enough Savings in Case of an Emergency?
Who doesn't face an unexpected event and a surprise bill? The most common are medical expenses, home repairs, car repairs, and unexpected travel expenses. A sudden loss or drop in income can make almost any bill challenging to pay.
Use the Bills.com Emergency Fund Calculator to figure out how much money you need to save and protect yourself in cases of distress.
Emergency Fund Saving Calculator
Calculate Your Emergency Fund Needs
Use BIlls.com's simple Emergency Fund Calculator to find out how much you need to save in an emergency fund. Calculate the amount you need, based on your income and budget, and the number of months that you want to cover. Once you have your target, compare that to your current available emergency fund savings.
Keeping a budget helps you understand how you are spending your money. A deeper analysis allows you to discover which are your basic expenses. Do you keep a budget?
Calculate your essential monthly expenses. Think about a case where you don't have income for a short-term and you need to cover you essential monthly expenses. You can cut out luxury items, but there are may bills that can't be avoided.
There is no one size fits all answer. However, most experts recommend at least three months of living expenses in an emergency fund savings account. Our recommendation, is that you set a goal to have at least six months of liquid assets that are in a safe andn easliy accesible account.
Now check your actual savings against the amount you need in an emergency savings fund. The calculator willl assess your situation and give you a quick recommendation.
Don't Just Calculate Your Emergency Fund Needs: Start Saving
The best place to keep your emergency fund is a savings account. You benefit from easily accessible cash and protection against risk. Use the Bills.com Savings Rate Table to see a number of savings account available in your area and compare high-yield offers.
Emergency Savings and Your Financial Health
Your emergency fund is a vital part of your overall financial situation. However, it is crucial that you make savings a part of your overall game plan.
Take Bills.com's Financial Health Survey to analyze how you score on Spending, Borrowing, Saving, and Planning. Get recommendations and tools. Then take steps to improve your financial health.
Thanks for the calculator. Not only did I realize how much I needed to save, but I immediately started a new account. I decided to put away $400 each month. Once I build up my emergency account, I plan on putting away money to buy a home.
Edith, thanks for your positive feedback. That is a great plan! I suggest that you look at some of our other tools including our Financial Health Survey and Bills.com Monthly Savings Calculator.