Emergency Fund Target Calculator
Standard advice says 3-6 months of expenses, but the right number depends on job stability, dependents, health, and debt. Dual-income no-kids needs 3 months; single-earner with kids needs 9-12 months.
How Much Emergency Fund You Need
Baseline 3 months expenses. Add 1 for stable job, 3 for low job stability. Add 2 for single-income household. Add 4 for variable income (freelance, commission). Add 1-2 for dependents. A dual-income corporate household with no kids: 3 months. Single-parent freelancer: 9-12 months.
Where To Park Emergency Fund
High-yield savings account (HYSA) — Ally, Marcus, Discover at 4-5% APY in 2026. Money market fund (Vanguard VMFXX, Fidelity FZDXX) — slightly higher yield. 4-week Treasury Bill ladder — highest yield + state tax exempt. Never put emergency fund in stocks or long-term bonds — volatility kills the emergency function.
Building From Zero
Start by saving $1,000 'starter' fund — covers most short-term cash crises. Then build to 3 months while paying off high-interest debt. Once 3 months saved + high-interest debt eliminated, expand to full target. Standard rule: never delay 401(k) match for emergency fund — match is 100% guaranteed return.
Source: Federal Reserve Survey of Consumer Finances 2024, Vanguard 2025 How America Saves. Last updated: May 2026.