Mundevo

Glossary · Lifestyle and budget

Emergency fund

Cash savings that cover 3 to 6 months of essential expenses — the financial cushion for job loss, illness, or relocation gaps.

An emergency fund is liquid cash (savings account, money-market fund) sized to cover essential expenses for 3 to 6 months. Essentials, not full lifestyle — the goal is survival, not maintaining discretionary spend. The classical target is 6 months for single earners and 3 months for dual-income households.

For relocators, the emergency fund matters more than usual. New visa rules can require proof of funds; first-month deposits and shipping costs are front-loaded; job loss in the first 12 months can trigger residency complications. Build the fund before the move, not after.

Where the emergency fund lives matters too. Currency mismatch (savings in dollars, expenses in euros) introduces FX risk. If you're confident in the move, hold at least 3 months in the destination currency to insulate from exchange-rate swings.

Where Mundevo uses this

Related terms

Savings rate
The fraction of your net income set aside each month — Mundevo defaults to 10% of net when computing required salary.
Essentials multiplier
The factor applied to the essentials basket (housing, food, transport, utilities, healthcare) at a given lifestyle tier.
FX rate
The market price of one currency in terms of another — fluctuates daily and affects cross-currency salary comparisons.

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