ForecastingStocks

Before any investing for growth, you need an emergency reserve — money set aside purely to cover the unexpected: a job loss, a medical bill, an urgent home or car repair.

Why it comes before investing

Without a reserve, the first emergency forces you to sell long-term investments at the worst possible moment, or to take on expensive debt. The reserve is what lets the rest of your plan stay invested and undisturbed. It is insurance you pay yourself.

How much

A common guideline is 3 to 6 months of essential expenses — note expenses, not income. If your income is stable (a tenured public job, for example), the lower end may be enough. If it is variable or you are self-employed, lean toward 6 to 12 months.

Where to keep it

The reserve must be safe and liquid — available within a day, with very low risk of loss. Return is secondary here. In Brazil, common homes for the reserve include:

Tesouro Selic (a post-fixed government bond that tracks the Selic rate, with daily liquidity).
A CDB with daily liquidity from a sound bank — ideally covered by the FGC (Fundo Garantidor de Créditos) guarantee within its limits.
A conservative, low-fee DI/Selic-linked fund with same-day or next-day redemption.

Avoid keeping it in stocks, long-dated bonds, or anything you cannot access quickly without risk of a loss.

Keep it boring

The reserve is not meant to grow your wealth — it is meant to be there. Rebuild it whenever you draw on it, before resuming other goals. Product and tax rules change, so confirm current liquidity and taxation before choosing where to park it.