How big should your emergency fund be?

An emergency fund is cash you can reach in a day — for a job loss, car repair, or medical bill. It's the foundation everything else sits on.

The rule

Save 3–6 months of essential expenses (rent, food, utilities, transport, insurance — not dining out). If your income is steady, 3 months is enough. If it's variable or you're the sole earner, aim for 6.

Why before investing or extra debt payments?

Without a cushion, one surprise forces you to borrow at high interest or sell investments at a loss. The fund is what keeps a small problem from becoming a big one.

How to build it

Open a separate savings account so it's not mixed with spending money.
Automate a transfer the day you're paid.
Start with 1 month, then 3, then 6. Progress counts.

Try our free emergency fund calculator to get your number. And if you also have debt, see the snowball vs avalanche guide for where extra money should go.

Written by the ClearFin team · free tools, no account needed.