Financial experts typically recommend having 3-6 months of essential living expenses in your emergency fund. However, the ideal amount varies based on your personal situation.
Consider factors like:
- Job stability (contract workers or self-employed individuals might need 6-12 months)
- Number of income sources in your household
- Your fixed monthly expenses
- Any existing health conditions or other risk factors
Start with a minimum goal of $1,000, then work toward one month of expenses, and gradually build from there.
Keep your emergency fund in a liquid, easily accessible account like a high-yield savings account or money market account.