How Big Should Your Emergency Fund Be? (And Where to Keep It)

An emergency fund is the cash that stops a bad week from becoming a financial disaster — a job loss, a medical bill, a car that dies. The question isn't whether to have one; it's how big, and where to keep it.

The rule of thumb

When to lean smaller (3 months) vs larger (6–12)

Where to keep it: a high-yield savings account

Build it before you invest aggressively

Open PerfinLab — the personal finance app that shows its math.