How many months' worth of expenses should an emergency fund ideally cover?

An emergency fund is designed to provide a safety net for unexpected expenses or loss of income. It is generally recommended that an emergency fund cover approximately six months' worth of living expenses. This amount is considered sufficient for most individuals and families to weather unforeseen financial challenges, such as medical emergencies, job loss, or urgent home repairs.

Having six months' worth of expenses set aside gives people enough time to find new employment or adjust their financial situation without the immediate pressure of paying daily expenses. While some financial advisors may suggest differing amounts depending on personal circumstances — such as job stability or health considerations — six months is the commonly accepted benchmark for an adequate emergency fund, allowing individuals a reasonable buffer in times of financial distress.