An emergency fund is a cash reserve set aside specifically to cover unplanned expenses and financial emergencies, like car or home repairs and unexpected medical costs.
Having an emergency fund means you won’t need to dip into your savings or go into debt when these expenses arise. You’ll also have a financial safety net for covering your living expenses and debt repayments if you don’t earn for a few months - due to retrenchment, for example.
To use this calculator, first determine your monthly living expenses and debt repayments. Once you have your monthly total, select how many months’ worth of these expenses you want to save. The calculator will then show you the total amount you need for your emergency fund.
You should aim to save 3 – 6 months’ worth of monthly living expenses and debt repayments. But save what you can for now, even a small amount can help cover an unexpected expense!
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Now you have an emergency fund savings goal to work towards. If you want to work out how to reach this goal, try our savings calculator to find out how much to set aside each month and for how long.
And remember, every rand counts, so don't stress if you can only afford to save a small amount now.
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