Free Template
Set and track 3-6 month emergency fund goals based on current expenses.
Emergency Fund Planning ----------------------- Essential Monthly Expenses: $ (Rent/Mortgage + Food + Utilities + Minimum Debt + Insurance) Target 1: Starter Fund ($2,000) | Status: [ ] Target 2: 1 Month Coverage ($X) | Status: [ ] Target 3: 3 Months Coverage ($Y) | Status: [ ] Target 4: 6 Months Coverage ($Z) | Status: [ ] Monthly Contribution Goal: $ Estimated Completion Date: [Date] Rules for Use: 1. Is it unexpected? (Yes/No) 2. Is it absolutely necessary? (Yes/No) 3. Is it urgent? (Yes/No) *If all 3 are 'Yes', use the fund.*
Calculate your 'bare bones' monthly survival budget.
Set your first goal at $2,000 to cover minor emergencies (car repair, etc.).
Calculate your 1, 3, and 6-month targets by multiplying your survival budget.
Decide how much you can reasonably save each month toward this goal.
Keep this money in a separate, high-interest savings account.
Don't invest your emergency fund: It needs to be liquid and safe, even if the interest rate is lower.
Replenish immediately: If you use the fund, make it your #1 priority to get it back to its target level.
Update annually: As your lifestyle or expenses change, adjust your targets.
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