SAVINGS
Emergency funds explained
An emergency fund is savings set aside for unexpected or irregular expenses. The appropriate target depends on a person's circumstances and is not a universal fixed number.
Why the target varies
Essential expenses, income stability, dependants and access to other resources can affect how large a cash buffer a person may want.
Use a goal calculator
A calculator can help model how long it could take to reach a target from a starting balance and recurring contribution.
Keep assumptions visible
Interest rates and timing are assumptions. Real savings products may have different rates, fees or access restrictions.
Source and review note
Time-sensitive rules should be checked against the current official source and the applicable date. This page is intended as general educational information.