While the size of your emergency fund will vary depending on your lifestyle, monthly costs, income, and dependents, the rule of thumb is to put away at least three to six months' worth of expenses.

How much cash should I keep for emergencies?

Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months' worth of living expenses.

Why is it important to save for emergencies?

An emergency fund allows you to live for a few months if you lose your job or if something unexpected comes up that costs a fair chunk of money to cover. Many banks and financial experts suggest that you should save anywhere from three to six months' worth of salary in your emergency fund.