How much should I save for emergencies?

Budgeting, saving and investing can help keep your financial goals on track, but life often brings unexpected events that can be costly and easily derail these goals. That’s why it’s important to save some cash for a “rainy day” in an emergency fund.
An emergency fund can prepare you financially and emotionally for the unexpected, giving you more confidence and flexibility to accomplish your goals.
An emergency fund is a pool of money used to pay for unexpected but necessary expenses, or to cover essential expenses after a temporary loss of income. Should an emergency happen, you’ll be able to use this money to cover your losses without derailing your financial goals.
For example, an emergency fund can help you save and prepare for:
For most people, maintaining three to six months of total expenses in emergency savings is appropriate. The specific amount to target depends on:
The greater your risks and the more confidence you want, the more money you should save for emergencies. That could mean maintaining more than six months in your emergency fund. A financial advisor can help you assess your specific situation to help determine where within the range, or even above it, you should be.
If you’re wondering how to start an emergency fund or save more money in the one you have, here are a few actions you can consider:
As you can see, your emergency fund need is as individual as you are. Your Edward Jones financial advisor can help you answer questions like these: