How many months of expenses to keep in cash
Emergency fund = cash for job loss, medical bills, or a broken car. Non-negotiable. Target: 6 months of expenses. Below, your numbers. See where you are and how long until 6 months.
"You must gain control over your money or the lack of it will forever control you."
Your emergency fund status
Uses your monthly expenses and emergency savings from Enter your current finances.
Little or no emergency fund? Prioritize this before aggressive investing. Risk score and Margin Score both reward a solid safety net.
Why 3–6 months
Three months = minimum buffer. Six = enough time to find a new job or handle a big expense without debt. Irregular income or dependents? Aim for 9 months.
Where to keep it
High-yield savings account. Accessible, not invested. Safety and liquidity—not growth. Once you hit 6 months, focus on sinking funds and long-term investing.
Related research
The ideas in this guide are backed by academic and policy research. We organize fundamental studies by Margin Score pillar on our Research page.
View research for this pillar →Key studies: The Nature of Precautionary Wealth.