How much should you save for emergencies?
You know you need an emergency fund—but how much should you put in it? The general rule is six months, but everyone’s situation is different: A single person with few financial commitments may want to save three months’ worth of expenses, whereas a family with a single breadwinner should try for nine months’ worth. These sample cases can help you figure out how much you should save for emergencies.
Whatever size emergency fund fits your situation, it’s a good idea to keep your savings in a low-risk, accessible account. If you’re just starting to save, learn how you can build an emergency fund fast.