## Why having one and how to calculate it. One of the first thing I learned about [personal finances](Personal%20finances.md) mangement is the need of an emergency fund. Geting an emergency found is the first thing to complete before thinking about investing or saving for holidays. This seems to be consensus. Constituting an emergency fund is as simple as calculating the incompressible amount of money you spend each month in vital services and goods (loan, house renting, bank account, public transports or car, insurances, subscriptions, food...) and then save in a specific account a `x month` equivalency depending on your risk profile. The amount is very personal, as it will very different whether you have childs, a house, loan and debts or just living with your parents and spend only for some leisure subscriptions. It also depends of how much risk you're willing to support. For me, it's easy : I live with my parents, don't spend more than 250€/month and I'm ok with high risks operations as I don't have a normal job and my company is still early stage. So I'm running with 8 month of emergency fund, which is already very large. My friends with a wife/husband and babies are more into 6 month of emergency funds calculated between 1500€ to 2000€/month. Very far from my little 250€/month.