An emergency fund is a reserve for unexpected expenses: a breakdown, losing a job or a sudden bill.

What it is for

It means you do not have to go into debt when something unplanned happens. It is the foundation of a calm budget.

How much to save

A commonly cited rule is the equivalent of 3–6 months of expenses. Work out your average monthly expenses in the “Average spending” window in Money Tracker and multiply them by the number of months you chose.

How to build it

Create a goal with that amount in Money Tracker, set a recurring deposit and watch the forecast. Keep the funds in an account you can reach quickly.

This is a general rule, not individual financial advice – adapt it to your situation.