How many months of living expenses do I have saved before I should risk money trading?

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.