Emergency Fund Calculator.xlsx

	A	D	G
1	EMERGENCY FUND CALCULATOR & TRACKER
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3	Save for life's unexpected events
4	How to use this workbook:
5	➡️ Any cell in teal is a fillable cell. ➡️ If you get an error message, that cell is blocked because it is a formula tied to another cell.		Video Tutorial: How to use the Emergency Fund Calculator
6	Elements of your Emergency Fund
7	Emergency Fund	➡️ Your Emergency Fund is your safety net. Your rainy day fund for the unexpected events in life. The pot of money you set aside to take care of your monthly expenses when life happens. This is your account to cover the things you absolutely have to pay for if you lose your job, incur a large medical bill, or have an unexpected expense.
8	Necessary Expenses	➡️Necessary Expenses are all of the things you MUST pay for every month. Think NEEDS. What things do you have to pay for every single month? The bills you are responsible for paying no matter what is happening in life. I.e. rent, utilities, cell phone bill, student loan payments, insurance, etc.
9	Non-essential Expenses	➡️ Non-essential Expenses A.K.A. things you could cut out of your budget if life happens. Think WANTS. If you had to cut back your spending these would be the items you'd cut out of your budget. Shopping, concerts, movies, and dining out, are all considered non-essential items.
10	FAQ's about Emergency Funds
11	How much do I need to save each month?	➡️ Jump into the calculator tab and start tracking all of your necessary expenses. From there you will see what your obligations are each month and how much you will need to save monthly to start stacking your emergency fund balance.
12	How many months should I have saved in my Emergency Fund?	➡️ Let's tackle this! Your financial situation will be a BIG factor in how many months of expenses you need in your emergency fund. The answer is different for everyone. The industry standard is 6-12 months. Let’s look at a few scenarios: ➡️ If you are single, young, and lost your job today—could you find another one easily? If so, 3-6 months of expenses in your emergency fund should be a good starting point. ➡️ If you are married, the sole income earner for your house, and losing your job or being unable to work would truly impact your financial picture—then 9-12 months of expenses in your emergency fund should be the goal. If you have people depending on you, having roughly a years’ worth of wages saved can be a game changer. ➡️ If you work a sales or commission job where your income fluctuates on a monthly basis and time of year. 6-12 months of expenses in your emergency fund should be the goal.
13	What about expenses that don't come up every month	➡️ Using our additional expense box you can record quarterly, semi-annual, and yearly expenses. These will automotically calculate to your emergency fund balance on the calculator tab.
14	Should I have a sepereate bank account for my Emergency Fund money?	➡️ We like using a high yield or money market savings account for our emergency fund. Keeping your Emergency Fund balance separate from your goal savings accounts and regular checking account will help you keep track of your balance and progress. Plus, high yield and money market accounts pay more interest than a traditional savings account. Win-win!
15	Can I have too much money in my Emergency Fund?	➡️ YES! Holding 24+ months of expenses for emergencies takes away from your ability to invest and build wealth. There is such a thing as too much when it comes to your emergency fund. Your goal is to find balance in the 3-12 month guidelines based on your financial situation.
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17	This workbook is for education purposes only. Use this tracker at your own risk. Changes to formulas can affect the data. Financial Footwork is not a financial advisor and does not provide investing advice.
18	Need help? Email us at: info@financialfootwork.com
19	Ⓒ Financial Footwork 2024
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