$4,000
6 months
$2,000
$400
4.50%
Emergency Fund Target
$24,000
Time to Goal
4 yrs 7 mos
Total Contributions
$24,000
Interest Earned
$1,247
Savings Growth Over Time
Contributions
Interest Earned
Goal Amount

Why an emergency fund changes everything.

An emergency fund isn't about being pessimistic — it's about buying yourself options. When the unexpected hits (job loss, medical bill, car repair), having 3-6 months of expenses in cash means you make decisions from stability, not panic. That changes every calculation.

Where you park that cash matters more than most people think. A regular savings account at 0.01% APY barely keeps up with checking. A high-yield savings account at 4-5% APY turns your safety net into a quiet growth engine — earning hundreds or thousands in interest while staying fully liquid.

The exact amount depends on your situation. Freelancers and single-income households lean toward 6-9 months. Dual-income households with stable jobs can get away with 3-4 months. The right number is the one that lets you sleep at night.

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