Save 3-6 months of essential expenses. If monthly essentials are $4,000, target $12,000-24,000. Stable dual-income households: 3 months. Single earners or variable income: 6 months. Self-employed or job insecurity: 9-12 months.
- Calculate based on ESSENTIAL expenses only, not full budget
- Consider: How long to find new job in your field?
- Health issues? Age of car/home? Add buffer.
- Dual income = lower risk, can save less
- Start with $1,000, then build to full amount
| Situation | Recommended Months | Example ($4,000/mo expenses) |
|---|---|---|
| Dual income, stable jobs | 3 months | $12,000 |
| Single income, stable job | 4-6 months | $16,000-$24,000 |
| Variable income/commission | 6-9 months | $24,000-$36,000 |
| Self-employed/freelancer | 9-12 months | $36,000-$48,000 |