How big should my emergency fund be?
Monthly essentials
Total $4,000 a month
Rent or mortgage, with property tax and HOA.
Power, gas, water, internet and phone.
Groceries, not eating out.
Car payment, gas and upkeep, or transit.
Health, car, home or renters, life.
Minimum payments on cards and loans.
Daycare, after-school care, support.
Medicine, pet care, anything you can't skip.
Your savings
Cash you could reach within a few days.
A month, toward the fund.
Your situation
Incomes in your household
One income adds a month.
Your work
A less secure job adds a month; self-employment or irregular pay adds two.
Children or others who rely on you
Dependents add a month.
Your home
Owning adds a month for repairs a landlord would cover.
Your emergency fund target
$16,000
That's 4 months of your $4,000 a month in essentials. The usual guidance is 3 to 6 months ($12,000 to $24,000); one income adds 1 month to the 3-month base.
Your $6,000 covers 1.5 months. Setting aside $500 a month, you reach $16,000 in 1 year, 8 months.
- Target
- $16,000
- 4 months of essentials
- Covered now
- 1.5 months
- $6,000 saved
- Still to save
- $10,000
- 37% of the way there
- Time to target
- 1 year, 8 months
- At $500 a month, before interest
How your target adds up
- Everyone starts at
- 3 months
- One income
- +1 month
- Your target
- 4 × $4,000 = $16,000
Milestones · at $500 a month
| Milestone | Amount | Still to save | Time |
|---|---|---|---|
| Starter fundHalf a month or $2,000 | $2,000 | $0 | Done |
| 3 months | $12,000 | $6,000 | 1 year |
| 4 monthsYour target | $16,000 | $10,000 | 1 year, 8 months |
| 6 months | $24,000 | $18,000 | 3 years |
How big should my emergency fund be? by Points Frog ↗ · An educational estimate, not financial advice.