How many months of living expenses do I have saved before I should risk money trading?
Enter Your Numbers
This looks only at your emergency savings, kept separate from your trading account, not your trading capital itself.
Your Result
Fill in the fields on the left and click Check My Runway to see where you stand.
How this is calculated
Runway in months equals your emergency savings divided by your monthly essential expenses.
The recommended cushion in dollars equals your monthly expenses multiplied by the number of months you choose as your target.
This tool intentionally ignores your trading account balance. The idea is that trading capital and emergency savings are two separate pools of money, and money set aside for rent, food, insurance, or a job loss should not double as trading capital.
There is no single official rule for how many months of expenses to keep in reserve. Three to six months is a commonly cited range, and your own number may depend on job stability, dependents, and other income sources.
Trading with money that also functions as your emergency fund adds pressure to avoid losses that has nothing to do with your trading plan, which tends to lead to worse decisions under stress.
Risk & liability disclaimer: This calculator restates numbers you enter using a common savings guideline. It is not financial, investment, or budgeting advice, and it does not know your full financial picture, income stability, dependents, or insurance coverage. Trading Habits is not a broker-dealer, registered investment adviser, or financial planner, and is not affiliated with any broker, exchange, or data provider. Trading involves risk of loss. Consider speaking with a licensed financial planner about the right emergency fund size for your situation.