What is a good amount for a contingency fund?

What is a good amount for a contingency fund?

A common recommendation is to have three to six months' worth of living expenses saved in a contingency fund.

Why is it important to have a contingency fund?

A contingency fund provides financial security in case of unexpected expenses, like medical emergencies or job loss.

How do I calculate my living expenses for this fund?

To calculate your living expenses, add up your monthly costs like rent, utilities, groceries, and transportation.

What if my expenses vary each month?

In that case, consider averaging your expenses over the past few months to get a more accurate estimate.