How big should my emergency fund actually be?

Most financial experts recommend 3 to 6 months of essential living expenses, but the right amount depends on your situation. If you have a stable job, a working partner, and no dependents, 3 months is likely fine. If you're self-employed, work on commission, have kids, or work in a volatile industry, aim for 6 to 12 months. Calculate it based on actual necessities only: rent or mortgage, utilities, groceries, insurance, minimum debt payments, and transportation. Not your full monthly spending. For most people this lands somewhere between $10,000 and $30,000. Keep it in a high-yield savings account so it stays liquid but earns something while it sits there.