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Emergency Fund

An emergency fund acts as 'insurance for your insurance' — covering 3 to 12 months of expenses so unexpected costs (job loss, medical, family emergencies) don't force you to sell investments at the wrong time.

Inputs

Fixed costs: rent or mortgage, food, transport, insurance, utilities, etc.

Funds immediately accessible: savings, short-term deposits, money-market funds.

Results
Recommended fund (6 months of expenses)
NT$240K
NT$40K × 6 months
Current status
Short by NT$140K
NT$100K covers 2.5 months of expenses
Calculation logic
  • Base months by income stability: stable 3, normal 6, unstable 12.
  • Add 2 months if financially responsible for others.
  • Add 1 month if no health insurance coverage.

An emergency fund keeps unexpected events (job loss, medical bills, appliance failure) from forcing you to sell long-term investments at a bad time. Keep it in savings or short-term deposits — do not chase yield.

Rule of thumb

  • Stable employment (civil servant, large company): 3–6 months
  • Typical salaried worker: 6 months
  • Self-employed / freelance: 12 months
  • Dependents (spouse, kids, parents): +2 months
  • No health insurance: +1 month

Keep it in highly liquid accounts (checking, short-term fixed deposit, money market fund). Don't chase returns on emergency money.

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