How it is calculated
Months = reserve ÷ monthly spending. The 3–6 month guideline is from Module 8 (“The reserve before everything”); for the self-employed and with an uncertain income — rather 6 or more.
The terms in the Glossary
- Emergency fund — An emergency fund (reserve) is money set aside only for unexpected costs — illness, repairs, losing a job — kept accessi
- Personal budget — A personal budget is a plan of how much money comes in and where it will go over a period — for example a month — regula
- Saving — Saving is setting aside part of your income today to use later — for a reserve, a goal or the future — with the money ke