Really depends on many factors in your specific situation. How stable is your industry? Do you live in high or low cost area? What is your overall financial situation? A good rule of thumb is at least 6 months. I’d be hard pressed to ever recommend less than that.
teakettle87 on
I am union with layoffs as a real possibility so I have 6-12 months saved up. No mortgage or other debt so I keep it small; If I had a Mortgage I’d step that up to 12 months minimum.
jvl777 on
Do whatever you can afford. Most Americans can’t even save 1k, but if you can do 1-3 months worth of expenses, do that.
MuffinMatrix on
The normal goal is around 6 months.
If you have other means and are in good positions, you can get away with 3.
If you have more uncertainly, go up to 12.
Grand-Waltz-3018 on
We have about $70k sitting readily available. About 10 months worth of “expenses.” I’d say in this current market to have 9-12 months.
Pure-Sherbert996 on
100k for now. No debt & house paid off last year.
That 100k can cover health deductible(s), car loss, major house repairs, or job loss if it all came down at once. Ironically, all of this happened to me in 2020. I never want to be in that spot again.
1991cutlass on
Couple years worth in hysa, cash and local bank. Another 3-4 years in a brokerage ready to pull out when the others run out. Anything less than that you are just asking for trouble.
StrainHappy7896 on
3 months is sufficient for me. You should aim for 3-6 months depending on your personal situation, field, etc.
BGEgger19821116 on
Wife and I both work, we keep 30k in hysa for emergency fund
50senseshort on
My opinion – depends on industry you work in. Healthcare/trades I think you can be safe with minimum ~6 month emergency fund.
If I was in tech/government/transportation, I would push it to 12 months if possible.
Personally, spouse and I are in healthcare and we feel safe with a 12 month HYSA emergency fund, knowing we might be missing out on potential “gains” by not having some of that in low cost ETFs.
Moon_Frost on
my job is pretty solid, and my area always has Help Wanted signs up every summer. I keep 6 months, which for me is $10k, working on bolstering it to a year because my bosses have been trying to sell for the last few years and its unknown if the new owners will keep my position. I may invest it depending on market conditions (leaving a minimum of 6 months.)
I dont have a career, I just go job to job for several years at a time. Last job i had was a gas station attendant for like 10 years, now im an embroidery machine operator for 4 years. It really depends on your job and how fluid you can be incase you lose it. Personally i can be anything in my area thats hiring.
MusicalTourettes on
I’m a cautious person. I grew up very poor and always felt anxious I’d be homeless. We typically keep ~4 months assuming $0 income. ~6-8 if there’s one earner. ~10-12 if there’s also income from unemployment or disability.
I’m quitting my job this month so I’ve piled up a bit more and am applying for disability. I still feel anxious even though we have a lot of savings.
Puzzled-Antelope- on
6mo expenses, which comes out to ~28k. Partner and I both work in p&c insurance, which feels fairly secure at the moment but you never know. It’s unlikely we’d both lose our jobs though, probably more likely that I’d lose mine and I’m the lower earner, and we can live off either single income.
ZeroFox14 on
Mine is about 4 months, but I also have a sinking fund (when fully funded is another 3 months, but varies based on home/auto Maintenance and repairs) and 6 months of student loan payments in a 529.
Job is stable, high demand field so could find something new quickly if needed.
If I can’t work, I have disability insurance that kicks in at 90 days.
jas_tastic on
I keep 6 months, with technically extra, since I have an emergency savings fund for my dog. However, I work in healthcare, so I’m not at all concerned about picking up a new job quickly. I can’t bring myself to do less than 6 months though.
Deep-Promotion-2293 on
I have about 3 months right now. Going to try to get it to 6 months this year.
Adventurous-Gur7524 on
Trying to keep a minimum 1-2 years. Currently trying to stay at about 30k.
ap9981 on
I have a full year of expenses plus a little in HYSA (figuring employment loss and then some other emergency hits at the same time)
When the interest takes me above that, I move it to a brokerage account
I’m in a tricky sort of field (I guess “tech” would be closest) and to stay in it at my current salary would take some hunting
I think I’d consider time to find a new job and double it. That’s the amount I’d keep in an emergency fund, so it’s very individual
munzter on
6 to 12 months. I feel more comfortable having 12 months of current monthly expenses in an HYSA though.
bondsman333 on
6-12 months.
I’ve been unemployed twice in 14 years and both times took me longer than 3 months to land.
Even in an employees job market the time between last paycheck of old job and first paycheck of new job is rarely less than 2-3 months. Corporate jobs usually do a couple rounds of interviews, job offer has to be approved by manager or board, start date is usually a few weeks out and first paycheck can take 2-4 weeks before it hits. All this to say – 3 months is almost certainly too light.
fusebLl on
12 months minimum liquid. for us that’s a little over $120k.
dh1971 on
I have about 5-6 months with access to cover close to 10. The plan is to build up a solid 8 months then pay down some debt. I should have the car paid off by December and if everything holds out the house will be paid off in 4-5 years.
Alithair on
I keep 12 months worth of expenses, but that’s because I have child support to pay and it gives me peace of mind knowing that I would have extra time to find a new job.
Ant10102 on
What ever i cant pinch together. Like 7k sadly
fragmentsmusic7 on
I have too much anxiety unless I have at least 12 months regardless of economic outlook. I’ve lived in my car. I’ve been homeless. I’ve tried hanging on with just six months and somehow I either have really bad luck or just don’t know how to get jobs quickly in my life so if I don’t have a year stowed away I lose sleep.
caelum_daemon on
I got like $50.
I’m also not super responsible financially. Working on it.
Whole_Day9866 on
10,210 but only because we came into a good amount of money at the beginning of the year. Before it was 3kish
PoolMotosBowling on
3 months bills and spending money in cash. Half of that in very diversified ETFs.
gab-a-pat-a-bob on
Québec, 4mo of expenses in emergency fund. 6mo if I add my travel and next car fund to it, which I would if I really needed it
30 Comments
Really depends on many factors in your specific situation. How stable is your industry? Do you live in high or low cost area? What is your overall financial situation? A good rule of thumb is at least 6 months. I’d be hard pressed to ever recommend less than that.
I am union with layoffs as a real possibility so I have 6-12 months saved up. No mortgage or other debt so I keep it small; If I had a Mortgage I’d step that up to 12 months minimum.
Do whatever you can afford. Most Americans can’t even save 1k, but if you can do 1-3 months worth of expenses, do that.
The normal goal is around 6 months.
If you have other means and are in good positions, you can get away with 3.
If you have more uncertainly, go up to 12.
We have about $70k sitting readily available. About 10 months worth of “expenses.” I’d say in this current market to have 9-12 months.
100k for now. No debt & house paid off last year.
That 100k can cover health deductible(s), car loss, major house repairs, or job loss if it all came down at once. Ironically, all of this happened to me in 2020. I never want to be in that spot again.
Couple years worth in hysa, cash and local bank. Another 3-4 years in a brokerage ready to pull out when the others run out. Anything less than that you are just asking for trouble.
3 months is sufficient for me. You should aim for 3-6 months depending on your personal situation, field, etc.
Wife and I both work, we keep 30k in hysa for emergency fund
My opinion – depends on industry you work in. Healthcare/trades I think you can be safe with minimum ~6 month emergency fund.
If I was in tech/government/transportation, I would push it to 12 months if possible.
Personally, spouse and I are in healthcare and we feel safe with a 12 month HYSA emergency fund, knowing we might be missing out on potential “gains” by not having some of that in low cost ETFs.
my job is pretty solid, and my area always has Help Wanted signs up every summer. I keep 6 months, which for me is $10k, working on bolstering it to a year because my bosses have been trying to sell for the last few years and its unknown if the new owners will keep my position. I may invest it depending on market conditions (leaving a minimum of 6 months.)
I dont have a career, I just go job to job for several years at a time. Last job i had was a gas station attendant for like 10 years, now im an embroidery machine operator for 4 years. It really depends on your job and how fluid you can be incase you lose it. Personally i can be anything in my area thats hiring.
I’m a cautious person. I grew up very poor and always felt anxious I’d be homeless. We typically keep ~4 months assuming $0 income. ~6-8 if there’s one earner. ~10-12 if there’s also income from unemployment or disability.
I’m quitting my job this month so I’ve piled up a bit more and am applying for disability. I still feel anxious even though we have a lot of savings.
6mo expenses, which comes out to ~28k. Partner and I both work in p&c insurance, which feels fairly secure at the moment but you never know. It’s unlikely we’d both lose our jobs though, probably more likely that I’d lose mine and I’m the lower earner, and we can live off either single income.
Mine is about 4 months, but I also have a sinking fund (when fully funded is another 3 months, but varies based on home/auto Maintenance and repairs) and 6 months of student loan payments in a 529.
Job is stable, high demand field so could find something new quickly if needed.
If I can’t work, I have disability insurance that kicks in at 90 days.
I keep 6 months, with technically extra, since I have an emergency savings fund for my dog. However, I work in healthcare, so I’m not at all concerned about picking up a new job quickly. I can’t bring myself to do less than 6 months though.
I have about 3 months right now. Going to try to get it to 6 months this year.
Trying to keep a minimum 1-2 years. Currently trying to stay at about 30k.
I have a full year of expenses plus a little in HYSA (figuring employment loss and then some other emergency hits at the same time)
When the interest takes me above that, I move it to a brokerage account
I’m in a tricky sort of field (I guess “tech” would be closest) and to stay in it at my current salary would take some hunting
I think I’d consider time to find a new job and double it. That’s the amount I’d keep in an emergency fund, so it’s very individual
6 to 12 months. I feel more comfortable having 12 months of current monthly expenses in an HYSA though.
6-12 months.
I’ve been unemployed twice in 14 years and both times took me longer than 3 months to land.
Even in an employees job market the time between last paycheck of old job and first paycheck of new job is rarely less than 2-3 months. Corporate jobs usually do a couple rounds of interviews, job offer has to be approved by manager or board, start date is usually a few weeks out and first paycheck can take 2-4 weeks before it hits. All this to say – 3 months is almost certainly too light.
12 months minimum liquid. for us that’s a little over $120k.
I have about 5-6 months with access to cover close to 10. The plan is to build up a solid 8 months then pay down some debt. I should have the car paid off by December and if everything holds out the house will be paid off in 4-5 years.
I keep 12 months worth of expenses, but that’s because I have child support to pay and it gives me peace of mind knowing that I would have extra time to find a new job.
What ever i cant pinch together. Like 7k sadly
I have too much anxiety unless I have at least 12 months regardless of economic outlook. I’ve lived in my car. I’ve been homeless. I’ve tried hanging on with just six months and somehow I either have really bad luck or just don’t know how to get jobs quickly in my life so if I don’t have a year stowed away I lose sleep.
I got like $50.
I’m also not super responsible financially. Working on it.
10,210 but only because we came into a good amount of money at the beginning of the year. Before it was 3kish
3 months bills and spending money in cash. Half of that in very diversified ETFs.
Québec, 4mo of expenses in emergency fund. 6mo if I add my travel and next car fund to it, which I would if I really needed it
I have around 35k emergency fund as DINKS