The standard 3-6 months expenses advice doesn't fit everyone. Your ideal emergency fund size depends on income stability, dependents, and risk factors.
Emergency Fund by Situation
- Dual income, no kids, stable jobs: 3 months ($10K-15K)
- Single income with dependents: 6 months ($20K-30K)
- Self-employed or commission-based: 9-12 months ($30K-50K)
- Near retirement: 12-24 months ($50K-100K)
Keep your emergency fund in a high-yield savings account earning 4.8% — not under the mattress. At $30K, the interest alone ($1,440/year) essentially earns you a free month of expenses each year.
