Narcis Miclaus

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Emergency fund sizer

How many months of expenses should YOU keep liquid? Job type, household and dependents in — target fund, gap and time-to-goal out.

€

Rent, food, bills, minimum transport — survival mode, not your normal budget.

Kids, a non-working partner, parents you support.

€
€
%

Where the fund sits: conto deposito, BOTs or a money-market fund — typically 2.5–3.5% today. Never stocks.

Your emergency fund

Recommended cushion4 months
Target fund€6,000
You have€3,000 (50%)
Still missing€3,000
Time to goal at this pace10 months
Interest on the full fund, per year+ €180
StatusAlmost there

A sizing heuristic, not advice. The months formula starts at 3 and adds risk for contract type, single income and dependents (max 12). Keep this money boring and liquid: deposit account, BOTs, money market — never stocks.

Why months, not a fixed number

An emergency fund buys time: time to find a job, recover, or fix the thing that broke, without touching investments or debt. Time is measured in months of essential spending — so the fund scales with your life, not a magic number. The formula starts at 3 months and adds risk for a fixed-term contract (+2), freelance income (+4, no NASPI cushion), a single-income household (+1) and each dependent (+1, up to 3). Two stable incomes take one month off.

Where to park it

  • Conto deposito — simplest; look for unrestricted (svincolato) rates.
  • Short BOTs — state risk, 12.5% tax on gains instead of 26%.
  • Money-market ETF — fine if you already have a broker; T+2 to withdraw.
  • Never stocks — the whole point is that it's there in a 2008 or 2020.

What it doesn't cover

Planned big expenses (car, wedding, house deposit) deserve their own named funds. This one is strictly for the unplanned. Related lesson: the emergency fund chapter of the finance course.

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