How Big Should Your Emergency Fund Be?

The standard advice for an emergency fund is to save 3 to 6 months of expenses. But "3 to 6 months" is a wide range — how do you know where you fall?

When 3 Months is Enough

• Two Incomes: If you are in a dual-income household where both jobs are stable.
• Low Dependents: If you don't have children or others who depend on your income.
• Liquid Assets: If you have other accessible savings (not in retirement accounts).

When 6 Months (or More) is Better

• Single Income: If your household relies on one paycheck.
• Variable Income: If you are a freelancer or have a commission-based job.
• High Deductibles: If you have high-deductible health or car insurance.

What Counts as an Expense?

An emergency fund is for needs, not wants. Calculate only your housing, utilities, groceries, and minimum debt payments to find your true target number.

Plan your emergency fund goal with our Savings Goal Calculator.