Glossary
Emergency Fund
An emergency fund is cash set aside specifically for unexpected expenses like medical bills, car repairs, or job loss. Most experts recommend saving three to six months of essential expenses.
Why it matters
Without an emergency fund, a single surprise expense can spiral into credit card debt or missed payments. It acts as a financial shock absorber, giving you time to recover without derailing long-term goals. The peace of mind alone changes how you make daily money decisions.
Example
If your essential monthly expenses are $3,200, a fully funded emergency fund would be $9,600 to $19,200.
How Ray helps
Ray analyzes your spending history to estimate your essential monthly expenses, then tells you exactly how many months of runway your current savings cover. Try to see where you stand.
$ ray "how many months could I survive without income?"Related terms
Budget
A budget is a plan for how you'll allocate your income across spending categories, savings, and debt payments over a set period — usually monthly..
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Cash Flow
Cash flow is the net amount of money moving in and out of your accounts over a period.
Sinking Fund
A sinking fund is money you save incrementally for a planned future expense — like a vacation, insurance premium, or holiday gifts — so the cost doesn't hit all at once..
Liquidity
Liquidity refers to how quickly and easily you can convert an asset to cash without significant loss in value.