How It Works
Emergency funds exist for unexpected situations: flight cancellations requiring new bookings, medical emergencies, lost baggage, or natural disasters. The general rule is to set aside 3x your daily costs as emergency buffer—this covers most unforeseen circumstances.
Emergency Fund Components
Your emergency fund should cover: medical emergencies ($5,000+), emergency flights home ($500-2,000), extended accommodation if stranded ($100-200/night), and communication costs to联络 family and insurance.
💡 TipKeep emergency cash separate from your daily spending money. Store in multiple locations (wallet, bag, accommodation safe). Credit cards aren't always accepted in emergencies.