The recommended amount to save in an emergency fund is generally three to six months' worth of your current living expenses. This amount provides a financial buffer to cover unexpected events like sudden car repairs, medical emergencies, or job loss without incurring debt. Some experts suggest that if you have other assets or a higher risk tolerance, three months might suffice, while others recommend saving up to nine months' worth especially if you want more security and don't have additional resources to fall back on. More conservative advice even suggests 12 to 18 months of living expenses for greater safety. If saving that much seems difficult, starting with a smaller goal like $500 or a smaller amount and building it up over time is still beneficial. To calculate your emergency fund size, find your average monthly expenses (not just income) including housing, food, insurance, debt payments, and utilities, then multiply by the number of months you want your fund to cover. In summary:

• A good target is 3-6 months of essential living expenses.
• More cautious savers may aim for 9-12 or even 18 months.
• Start saving whatever you can if the full amount feels overwhelming.
• Keep the fund in liquid, accessible accounts like a savings account.

This approach balances risk coverage and financial practicality for most people.