Lesson 10 of 10
How much should be in your emergency fund?
Your starter fund covers small surprises.
Now grow it to cover big ones, like losing a job.
A common goal is 3 to 6 months of essential expenses.
Essential means what you must pay: rent, food, utilities, insurance, minimum debt payments.
Example: $2,000 a month in essentials
3 months$6,000
6 months$12,000
Your goal$6,000 to $12,000
Aim for the higher end if your income changes a lot or you're the only earner.
Keep it in a high-yield savings account, so it earns interest. At an FDIC-insured bank, deposits are protected up to $250,000.
Key idea
Your emergency fund isn't for investing. Its job is to be there, safe, the day you need it.
Go deeper: high-yield savings accounts, explained.
You finished all 10 lessons
Put it to work: see your real take-home pay, then build a plan for it.
Sources: FDIC: Deposit insurance