How Much Emergency Fund Is Enough
The honest answer depends on your income stability, not a round number.
By James Okonkwo · 6 min read
Start with one month
The jump from zero savings to one month of expenses removes more stress than any later milestone. It converts most emergencies from crises into inconveniences.
Chasing six months from a standing start is why many people never begin.
Then size it to your risk
Two stable salaries and no dependants? Three months is reasonable. Freelance income, a single earner, or a specialised job with a long search time? Aim for six to nine.
Count essential expenses only — rent, food, utilities, transport, minimum debt payments — not your current lifestyle.
Where to keep it
Somewhere boring, separate, and reachable within a day. A high-interest savings account at a different bank than your current account is the sweet spot: earning something, not one tap away from a takeaway.
Do not invest it. This money's job is certainty, not growth.