In the recent times, all of us have known the importance of having an emergency fund. But most of us do not know how much amount we should keep aside for emergency. The emergency fund calculator is a great online tool to estimate the amount that you should put aside for emergency. This is an easy to use tool which can be used by both the young and the old.

When you decide to use an emergency fund calculator, you will have to enter certain information in it to get the desired result. All in all, this calculator will take into account all the necessary living expenses in order to decide the size of an emergency fund for you. It should be noted here that the calculator subtracts any amount which you have already set aside for this fund.

Important details you should enter in the calculator

Some of the details which you need to enter into the calculator and their definitions are as follows:

Current Savings – This is the amount of assets which you can turn into cash within 30 to 90 days and pay off for your expenses. You can include money market funds, money market accounts, CDs, etc. here.

Travel related expenses – As the name suggests, this will include the amount that you spend toward your car insurance payments, car loans, gasoline, any other monthly maintenance as well as repairs.

Home expenses - While running a household, you will have to incur different types of expenses. You will have to include them in this section. Some of the important household expenses include heating fuel, electricity, water, telephone, natural gas, cellular service, internet access, etc. You can even include your food and credit card bills in this category.

Expenses for living – In this category, you will have to include expenses like homeowner insurance policies, mortgage or monthly rent, real estate taxes, monthly payments toward property repair, etc.

Various personal expenses – Under this category, you will have to include expenses like medical insurance payments, personal loans, life insurance premiums, etc. These expenses are included in the emergency fund calculator because you can use the fund amount to make the payments in case you lose your job.

Essential expenses in entirety – This is nothing but the summation of the individual monthly expenses which you have already entered into the calculator earlier.

Optimum Emergency Fund – This is one of the most important sections that you need to calculate. It is actually the total essential expenses for six months. Once this value is calculated, you can subtract your present savings to know the optimum additional savings required.

Minimum Emergency Fund – This is another important section which one needs to calculate through emergency fund calculator. This is the total essential expenses which you will incur in a time period of three months. Once you get the value, you can subtract your present savings to know your required minimum additional savings.

Now that you know about the emergency fund calculator in details, you can use it for your own benefit and manage your emergency fund with care! For More Visit : http://www.emergencyfundonline.com/Emergency-fund-calculator.html