# Emergency Fund

*Everyday Money — Finicade finance glossary*

Cash set aside for the month life goes sideways — job loss, car repair, medical bill. Three to six months of essential expenses in an instant-access account is the classic target; it's what keeps a bad month from becoming expensive debt.

**Related terms:** [Budget](https://finicade.com/glossary/budget), [Liquidity](https://finicade.com/glossary/liquidity), [Pay Yourself First](https://finicade.com/glossary/pay-yourself-first)

**Taught in:** Money Basics — Pay Yourself First

Source: https://finicade.com/glossary/emergency-fund