Module 4: Emergency Fund

Financial Safety Net

Why Emergency Fund?

Key Benefits

  • Financial security
  • Stress reduction
  • Avoid debt
  • Peace of mind

Fund Size Guide

3-6 Months

Basic expenses coverage

6-12 Months

Extended protection

Calculation

Monthly expenses × months needed

Where to Keep It?

Savings Account

Easy access, low risk

Money Market

Better interest rates

Short-term CD

Higher yield, less liquid

Common Emergencies

  • Job loss
  • Medical expenses
  • Car repairs
  • Home repairs
  • Unexpected travel

Building Strategy

  • Start small
  • Automatic transfers
  • Consistent additions
  • Regular review

Level 4 Preview

Ready to build your emergency fund?

  • Allocate $1000
  • Choose safe investments
  • Balance risk & liquidity
Start Level 4 →