Now what you are going to want to find out is not only income that is coming into your household after taxes but also the fixed and the variable expenses that you have in order to look at the bottom line which is certainly going to be a positive number so that you have some money to put aside for savings for an emergency fund but in creating the emergency fund the budget is important because what you are going to be looking at on an emergency fund is being able to have enough money set aside so that if something should happen to you or your partner and you weren't able to earn the income or bring income into your house be it unemployment or an illness that you would have enough in reserve to cover your expenses so you really need to get a handle on what truly is your expenses on a monthly basis and in terms of looking at an emergency savings fund there are a couple of variables that would depend on what the appropriate amount is to have saved up.
If you have a partner and you both have steady jobs with good incomes and you have been working
there for a while and you feel pretty good about your job, you can probably do with having three months' worth of expenses saved up in an emergency fund. If you are single, you are working at a new job, you are kind of unsure about your future, you may be looking to change jobs in the future you probably want to have a little bit more of a cushion because you are only relying on your own income and the income in the future may not be as
stable and in that case, you would probably want to look towards trying to save six months worth of expenses in a savings plan and when you are looking at an emergency fund it should always be kept in liquid savings account.
You can use your checking account but ideally, a savings account is going to provide you with maybe 1 to 3% of your interest which would help it grow over time but you want to make sure the money is liquid, it's accessible,
it is totally safe and it is going to be there when you need it.
As found on Youtube
Emergency Club Cash Fund