Business Emergency Fund Targets

Executive summary

Business emergency funds should be separate from personal reserves and scaled to revenue volatility and fixed costs.

• 3 months fixed costs minimum
• 6 months for service-only businesses
• 12 months for inventory-heavy or seasonal

Key takeaways

• 3 months fixed costs minimum
• 6 months for service-only businesses
• 12 months for inventory-heavy or seasonal
• Hold in money-market or T-bills

Key strategies

1. Strategy 1

   3 months fixed costs minimum

2. Strategy 2

   6 months for service-only businesses

3. Strategy 3

   12 months for inventory-heavy or seasonal

4. Strategy 4

   Hold in money-market or T-bills

Pro-tips checklist

• Don't commingle with personal reserves
• Refill within 90 days of any draw

FAQ