Module C · Saving & Investing Basics · Free
How big should an emergency fund be?
A starting target you can compute from your own numbers — and where people usually keep the money.
The common starting point
A widely used starting target is 3 to 6 months of essential spending — not your full income, just what it costs to keep the lights on: rent or mortgage, utilities, groceries, insurance, minimum debt payments, transportation. Discretionary spending (dining out, subscriptions, travel) isn't part of the base number, since the fund exists to cover needs while income is disrupted, not to maintain your normal lifestyle.
Why a range, not one number
Fewer months (closer to 3) is a common starting point for dual-income households with stable jobs and other safety nets. More months (closer to 6, sometimes more) is common for single-income households, irregular or commission-based income, or work in a volatile industry. The right number depends on how quickly you could realistically replace income if it stopped.
Try it with your own numbers
● Not saved anywhere
Where people usually keep it
- A separate savings account, not mixed with everyday spending money — separation reduces the temptation to dip into it for non-emergencies.
- Something you can access within a day or two without a penalty — an emergency fund locked in something illiquid defeats the purpose.
- Built gradually, often alongside minimum debt payments rather than strictly before or after — many people split new savings between the two.
In the app, your emergency-fund progress is tracked automatically against your real logged spending and savings — the "3.2 months" you saw on the homepage preview is a real, live number, not typed in each time. See how →