Lesson 3 of 3 · 5 min read
Exactly how much you need: the calculation step by step
We move from theory to concrete figures: how to work out your own essential monthly expenses and how to build the fund gradually, without getting stuck.
Step 1: list only your ESSENTIAL monthly expenses: the ones that can't be put off or cut without serious consequences. Rent or mortgage, utilities (electricity, gas, water, basic internet), basic food, necessary transport to work, compulsory insurance, chronic medication if that applies.
Don't include: entertainment subscriptions, going out, discretionary shopping. These are the first things you would cut in a real emergency anyway, so they aren't part of the “survival minimum” calculation.
Example
Essential monthly expenses: 3,200 RON (≈ €600). 3-month target = 9,600 RON (≈ €1,800). 6-month target = 19,200 RON (≈ €3,600). If you can set aside 400 RON (≈ €75) a month, the 3-month target is reached in 24 months.
Build it gradually, not all at once
You don't need the full sum today. A realistic first goal is 1,000 to 2,000 RON (≈ €187 to €375) (a “mini-fund” that covers the most common small emergencies), and then you build gradually toward 3, then 6 months. Automating a fixed monthly transfer, even a small one, works better in the long run than the intention to “put away whatever is left” at the end of the month, because usually nothing is left if it isn't prioritised.
In short
- Calculate strictly the essential expenses, not the whole budget.
- A mini-fund of 1,000 to 2,000 RON (≈ €187 to €375) is a realistic first step.
- Automate the monthly transfer: don't rely on “what's left”.