How much you need
Most planners suggest 3 to 6 months of essential expenses, and up to 12 months if you are self-employed or your income varies. Keep it in a high-yield savings account or money market fund you can access right away.
Example
With $3,500 of essential monthly expenses and a stable job, the target is $21,000. Saving $500 a month, you get there in about 3 years and 6 months, before interest.
Frequently asked questions
Should I invest before I have one?
Usually build the fund first, but grab any 401(k) employer match at the same time.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.