Mindset
You need less than you think: the case for a smaller number
Cutting CHF 1,000 from monthly spending can move your independence date by years. Where the money really goes and how to cut without feeling poorer.
Emergency fund calculator
Cash for bad months comes before investing. It keeps a job loss or a large bill from forcing you to sell at the wrong time.
Your result
- Keep in cash
- CHF 10’500
- Months of essentials
- 3 months
Your result, explained
Keep about CHF 10’500 in a savings account, 3 months of essential costs, before you invest. It lets you ride out a job loss or a large bill without selling investments at a bad time.
Estimates for planning, not advice. Use at your own risk. Read the full disclaimer
How it is calculated
- Stable job: 3 months of essential costs.
- Variable income: 6 months.
- Self-employed: 9 months.
- Plus one month per dependant, up to three, capped at 12 months.
A rule of thumb, not a law of nature: adjust it to your situation. Then invest the rest; see the savings rate tool.
Frequently asked questions
Where should I keep it?
In a savings account you can reach within days, separate from your everyday account. Not in stocks.
Do I need it if I have investments?
Yes. Markets can be down exactly when you need money. The emergency fund lets your investments stay invested.
What about unemployment insurance?
It replaces part of your salary after a waiting period, and self-employed people usually have none. The fund covers the gap.
Related tools
Related reading
The numbers
Savings rate: the number that sets how soon you are free
Your savings rate, not your salary, decides how many years you need. A table from 10% to 80% shows 66 years at the low end and 6 at the high end.
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