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Planning January 30, 2026 Financial Planner @ eCalcy 6 min read

Emergency Fund 101: How Much is Enough?

Financial peace of mind starts here. Learn how to build a bulletproof emergency fund that protects you from life's surprises.

Emergency Fund 101: How Much is Enough?

An emergency fund is your financial seatbelt. Before you start investing in volatile stocks or real estate, you need a liquid pool of cash to cover life's unexpected turns.

The 6-Month Rule

Standard advice suggests keeping 3 to 6 months of living expenses in a liquid account. However, in 2026, with the rise of the gig economy, many professionals are opting for a 9 or 12-month cushion to account for career transitions or market downturns.

Park Your Fund Wisely

Calculate potential returns on stable instruments like Fixed Deposits where you can keep your emergency money safe and accessible.

Where to Keep It?

High-yield savings accounts or short-term fixed deposits (FDs) are the best place for your emergency fund. The goal isn't high returns; it's liquidity and capital preservation. Never invest your emergency fund in the stock market.

Put this into practice

Start planning your planning with our free FD Calculator (for savings).