Personal Finance Ratios to Know at All Times | Family Finance | US News

An emergency fund is easily accessible money set aside for an unexpected event, like a job loss or sudden home repair cost. This ratio measures the number of months your cash savings could cover your monthly essentials without any additional income. Experts typically recommend an emergency fund in cash amounting to three to six months of monthly nondiscretionary expenses. Nondiscretionary expenses include items like rent, utilities and groceries.