It’s always a good idea to have savings tucked away for a rainy day. Emergencies such as legal or medical bills or loss of a job can all force you into “rainy day” mode. Planning ahead can make these types of events easier to cope with. To determine how big your rainy day savings should be, consider the emergency spending needs and essential spending needs you’d have if your source of income is interrupted, and how long you’ll have those needs. Once you know what you'll need, put together a plan based on your current savings, monthly savings and the number of months you want to take to build your rainy day fund.
Use this calculator to find out how much you need to save for an emergency fund.