Two divisions that locate you

What it is: Take the savings you could reach tomorrow. Divide by one month of essentials. The answer is how many months you could last with no income. That is your runway. Now take the money that arrives without you working. Divide that by essentials too. That share is your coverage.
Why it matters: Neither one has anything to do with how much you earn. A surgeon on a large salary can have under a month of runway. A shopkeeper with rent coming in can be covered. Income is what flows past you. These two measure what got built with it.
The method: Reachable is the word that matters. Money locked in a term deposit cannot be reached in an emergency, so it does not count. For coverage, divide unworked income by essentials, then multiply by one hundred to get the percentage.
Example: PKR 30,000 saved against PKR 55,000 of essentials is 0.5 months. Half a month. One dental appointment ends it.

Savings divided by essentials gives months. Unworked income divided by essentials gives a percentage.

Now you

What you could reach tomorrow, and what arrives without you working.

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