Start with essential monthly expenses
| Expense | Include? | Examples |
|---|---|---|
| Housing | Yes | Rent/mortgage, utilities |
| Food | Yes | Essential groceries |
| Debt | Yes | Minimum EMI/payment |
| Healthcare | Yes | Medication, regular treatment |
| Entertainment | Limited | Often reducible during a crisis |
Three months, six months, or more?
Stable dual income
Two stable incomes, low debt and strong support can justify the lower end.
Single income
If the household depends on one income source, a larger buffer is sensible.
More dependants
Children, elderly dependants or recurring medical needs can justify more months.
Variable income
Freelance or business income may justify aiming toward 6–12 months.
How to calculate your target
Emergency Fund = Essential Monthly Expense × Target MonthsIf essential monthly expenses are Tk 60,000 and your target is six months, the fund target is Tk 360,000.
Where should you keep it?
Avoid locking the entire fund somewhere difficult to access or exposed to large market swings. A practical approach is to keep an immediate portion highly liquid and the rest in low-risk, easy-access savings or deposits. Check withdrawal rules, penalties, access and account security.
Build it in five steps
- 1Build a one-month mini-fund
Start with one month of essential expenses.
- 2Automate transfers
Move a fixed amount after each salary or income payment.
- 3Use windfalls
Use part of bonuses or unexpected income to accelerate the target.
- 4Review every six months
Update the target when rent, debt, family size or job risk changes.
- 5Refill after use
After an emergency, make replenishment the next savings priority.