Emergency Fund — Your Financial Safety Net
An emergency fund is money set aside for unexpected expenses: job loss, medical bills, car repairs, or home emergencies.
How Much to Save
| Situation | Recommended | Why |
|---|---|---|
| Dual income, stable jobs | 3 months expenses | Lower risk, partner can cover |
| Single income, stable job | 6 months expenses | Standard recommendation |
| Freelancer / Self-employed | 9-12 months expenses | Income is irregular |
| Single parent | 6-9 months expenses | No backup income source |
Where to Keep Your Emergency Fund
Best: High-yield savings account (4-5% interest). Accessible within 1-2 days. Not in stocks, not in CDs with penalties, not under your mattress.
How to Build It
Start with a goal of $1,000, then build to 1 month, then 3 months, then 6 months. Automate transfers on payday. Even $50/week builds to $2,600 in a year.