How Big Should Your Emergency Fund Be?

Why you need one

An emergency fund is cash set aside for unexpected costs — a job loss, medical bill, or car repair. It keeps a setback from becoming high-interest debt and gives you breathing room to make good decisions.

How much to save

• Starter goal: $1,000 to handle small emergencies.
• Standard: 3–6 months of essential expenses.
• If your income is variable or you support a family on one income: aim for 6–12 months.

Where to keep it

Keep it liquid and safe — a high-yield savings account is ideal. It should be separate from your checking account so you are not tempted to spend it, but accessible within a day or two.

Set your target

Our Emergency Fund Calculator turns your monthly expenses into a concrete savings goal and shows how much you still need.