Wealth planning
Emergency fund basics
How to think about cash buffers before aggressive investing or aggressive prepayment.
5 min read · Updated August 2026
What it is for
An emergency fund covers job loss, urgent medical gaps, or essential repairs without forced selling of long-term investments or high-cost borrowing.
Sizing is personal
Common illustrations use a few months of essential expenses. Dual-income stable jobs may need less buffer than single-income variable income—judge your risk, not a social-media number.
Where to keep it
Prioritise liquidity and safety over return. Chasing yield with emergency money often defeats the purpose.
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Educational content from Aaru Wealth. Not investment, tax or legal advice.