How much emergency fund do you really need?
The classic advice is 3–6 months of expenses. But that range depends heavily on your situation. A salaried employee with no dependents and a stable employer is fine at 3 months. A freelancer with two kids and an irregular income should be closer to 9–12 months.
What counts as "essential expenses"?
Only the non-negotiables: rent/mortgage, utilities, groceries, minimum debt payments, insurance, transportation to work. Skip dining out, subscriptions, entertainment — those can be cut if you lose income.
Where to keep your emergency fund
- High-yield savings account (HYSA) — best for most people. Currently yielding 4–5% with full liquidity.
- Money market account — similar to HYSA, slightly higher minimums.
- Not in stocks — markets can be down exactly when you need the money.
Frequently asked questions
Should I invest before finishing my emergency fund?
Capture any employer 401k match first (it's a 50–100% guaranteed return). Then prioritize the emergency fund before additional investing, so a job loss doesn't force you to sell investments at a bad time.
Is my data saved?
No. Everything runs locally in your browser.
For educational purposes only; not financial advice.