# Setting your savings target

## Why set a target?

A savings target gives your emergency fund a clear goal. Without one, it is easy to lose focus or feel unsure whether you are making progress. With a target, you can track your progress, celebrate milestones, and know exactly when your safety net is complete.

- **Stay motivated**: See your progress bar fill up as you save
- **Automate intelligently**: Target-based automation rules fill your fund to exactly the right amount
- **Plan ahead**: Know how long it will take to reach your goal at your current savings rate

Your target appears on your Emergency Savings account and integrates with automation rules to help you reach your goal automatically.

## How much should you save?

Financial advisors typically recommend saving 3-6 months of essential expenses in your emergency fund. This provides enough runway to handle most unexpected situations without derailing your long-term financial plans.

| Your situation | Recommended coverage |
| --- | --- |
| Stable job, dual income household | 3 months of expenses |
| Single income, stable job | 4-5 months of expenses |
| Variable income or self-employed | 6+ months of expenses |
| Major life changes planned | 6+ months of expenses |

**Essential expenses** include rent or mortgage, utilities, food, transport, insurance, and debt payments. You do not need to include discretionary spending like entertainment or dining out.

Start with a smaller target if saving 3-6 months feels overwhelming. Even one month of expenses provides meaningful protection. You can always increase your target as your fund grows.

## Setting your target for the first time

When you first set up Emergency Savings, you will be guided through setting a target. You can enter an amount directly or use the built-in calculator.

1. Navigate to **Emergency Savings** from your home screen
2. Tap **Set up savings target**
3. Enter your target in the **Emergency savings target** field
4. Tap **Continue** to save your target

Your target now appears on your Emergency Savings account with a progress indicator showing how close you are to your goal.

## Using the target calculator

If you are unsure how much to save, the target calculator does the maths for you. It multiplies your monthly expenses by the number of months of coverage you want.

1. On the target screen, tap **Target calculator** to expand it
2. Enter your total **Monthly expenses** (rent, utilities, food, transport)
3. Select the **Number of months without income** you want to cover (3-9 months)

The calculator automatically updates your **Emergency savings target** field as you adjust these values. For example, if your monthly expenses are R15,000 and you select 4 months, your target will be R60,000.

> **Tip**: Emergency savings should cover 3-6 months of expenses. Start with 3 months and increase over time.

## Adjusting your target

Your financial situation changes over time. You might get a raise, move to a new city, or take on new expenses. Adjust your target whenever your circumstances change.

1. Navigate to **Emergency Savings**
2. Tap the menu icon (three dots) in the **Target** card
3. Select **Edit target**
4. Update your target amount or recalculate using the calculator
5. Tap **Continue** to save

There is no limit to how often you can change your target. Review it whenever you have a significant change in income or expenses.

## Tracking your progress

Once you set a target, your Emergency Savings account shows your progress towards that goal.

- **Progress bar**: Visually displays how much you have saved relative to your target
- **Remaining amount**: Shows exactly how much more you need to save
- **Fynbos vs elsewhere**: If you track external savings, the progress bar shows both sources in different colours

Your progress updates automatically as you transfer money in or out of Emergency Savings. Interest earned also counts towards your target.

## Target and automation rules

Setting a target unlocks powerful automation. You can create a target rule that automatically transfers money to Emergency Savings until your target is reached.

**How target rules work**:

1. Money arrives in your Cash account
2. Automation rules run in order
3. The target rule calculates how much you need to reach your goal
4. It transfers only that amount, leaving extra funds for other rules

This means you will never over-fund your Emergency Savings. Once you reach your target, the automation skips Emergency Savings and sends funds to the next account in your rule order.

Learn more about target rules