Emergency Fund 101: How Much Do You Really Need?

You've heard you need 3-6 months of expenses saved. But is that really right for everyone?

The Standard Advice

Most financial experts recommend:

• 3 months of expenses (minimum)
• 6 months (comfortable)
• 12 months (extra security)

Finding Your Number

Your ideal emergency fund depends on:

Job Stability

• Stable job = 3 months might be enough
• Variable income/freelance = 6+ months
• Single income household = lean toward more

Monthly Expenses Calculate your true essentials:

• Housing
• Utilities
• Food
• Insurance
• Debt minimums

You don't need to cover your full spending—just survival expenses.

Getting Started

Don't let the big number overwhelm you:

1. Start with $500 (handles most small emergencies)
2. Build to $1,000
3. Then work toward 1 month
4. Keep going from there

Any emergency fund is better than none. Start where you are.