How much emergency fund should I keep?

An emergency fund protects you from selling investments at the wrong time. Once you have a buffer, investing can make more sense for long-term goals.

A simple rule of thumb

Many people aim for 3–6 months of essential expenses in a high-interest savings account. Your number depends on job stability and obligations.

Once your emergency fund is solid, you can compare the long-term impact of investing vs keeping everything in savings using the calculator.

Should I invest before I have an emergency fund?

Usually it’s safer to build a buffer first. Investing can drop at the wrong time.

Where should I keep my emergency fund?

Typically in an accessible savings account. The priority is liquidity and stability.

Does keeping cash mean I’m losing out?

Possibly on long-term returns — but emergency funds are insurance, not an investment.

How can I compare outcomes?

Use /ETFvSavings.html to compare a savings rate vs an investing return assumption over the same timeline.

What’s a good next step?

Set a buffer target, automate contributions, then invest consistently for long-term goals.