Chapter 02 · Beat inflation
How big should your emergency fund be?
Enter your essential monthly spending to see the cushion you need, how long it takes to build and what inflation costs along the way.
Cushion first, then invest
An emergency fund keeps you out of debt and stops you selling investments at the wrong moment. Once it is in place, investing makes sense.
See also the savings vs inflation calculator and the broker comparison.
Rates change. Informational only, not personal financial advice.
Frequently asked questions
How big should an emergency fund be?
A common rule of thumb is 3 to 6 months of essential spending; people with variable income or dependants often choose more. This is an illustration, not personal advice.
Where should an emergency fund be kept?
In an instantly accessible savings account, free of market risk. The average rate was 0.38% in October 2026 (FDIC National Rates (via FRED series SNDR)).
Does an emergency fund lose value to inflation?
If the rate is below inflation, yes: -3.32% a year in real terms. That is the price of instantly available money, so don't hold more than you need.
Next · chapter 03
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