How Much Should You Save in Your Emergency Fund?
When life throws the unexpected your way—whether it’s a flat tire, medical bill, or sudden job change—an emergency fund can be the difference between staying afloat and falling behind. But how much should you actually set aside? The answer depends on your lifestyle, your monthly expenses, and how stable your income is. Let’s break it down, together.
Start with the Basics: What Is an Emergency Fund?
An emergency fund is money you set aside to cover unplanned expenses or financial emergencies. Think of it as your personal safety net when you need it most. According to financial experts like the Consumer Financial Protection Bureau, Bankrate, and NerdWallet, a healthy emergency fund should typically cover 3 to 6 months of living expenses. But every household is different, and your number might be too.
So, How Much Do You Need?
The right amount to save depends on your income, household size, job security, and monthly bills. Here’s a general guideline to consider:
3 months: If your household has dual incomes and your jobs are relatively stable, saving 3 months of essential expenses is a solid foundation. This includes things like rent or mortgage, utilities, groceries, insurance, and minimum debt payments.
6 months: If you’re self-employed, work on commission, or rely on freelance or gig income, aiming for 6 months is safer. With more variability in your income, you’ll want a larger buffer.
More than 6 months: If you’re navigating a major life transition—like starting a business, expecting a baby, caring for a loved one, or managing ongoing medical costs—having more than 6 months saved could offer added peace of mind.
Calculate Your Number
Not sure where to start? Add up your essential monthly expenses. Focus on the costs you couldn’t cut, like:
Housing
Utilities
Groceries
Insurance premiums
Transportation
Loan payments
Once you have that monthly number, multiply it by 3, 6, or more, depending on your situation. That’s your emergency fund target. Need help running the numbers? Try our free Budget Calculator to map out a realistic savings plan.
Make It Easy to Start Saving
At Voyage, we know starting is often the most challenging part. That’s why we try to make it simple.
Open a separate savings account, set up automatic transfers, use payroll deduction, and take advantage of bonuses and refunds. All these practices will ensure a savings boost and stability in emergencies.
Stay Focused and Flexible
Once your fund is growing, check in on it regularly. Is it enough to meet your needs today? Could it cover you for a few months if something unexpected happened tomorrow? And remember: your emergency fund is there for emergencies. Try not to dip into it unless absolutely necessary. If you do use it, make a plan to rebuild when the time is right.
You’ve Got This—And We’ve Got You
Building an emergency fund takes time, but it’s one of the smartest financial decisions you can make. At Voyage, we’re here to help you stay prepared for life’s surprises with tools, resources, and support that meet you where you are.
Ready to build your safety net?
Open a savings account today or stop by your local branch to get started. Let’s build something strong—together.
