Everyday money2 min read · Updated October 19, 2026
How big should an emergency fund be? A simple way to work it out
A simple rule for how much to keep as an emergency fund, how long it takes to build, and where to keep it.
The rule
Add up essentials: rent or mortgage, utilities, food, transport, insurance, minimum debt payments. Multiply by three to six. Freelancers and single earners should aim higher.
Where to keep it
A savings account at an FDIC-insured bank. Automatic transfers on payday make it happen.
Common questions
How much should I have in an emergency fund?
Three to six months of essential spending.
Where should I keep it?
In an easy-access, FDIC-insured savings account.