Skip to site content
Logo

Change your life by
managing your money better.

Subscribe to our free weekly newsletter by entering your email address below.

  • Topics
    Topics
    • Financial Planning
    • Investing
    • Budgeting
    • Debt Management
    • Money Mindset
    • Tax Planning
    • Retirement Planning
    • Estate Planning
    • Wealth Management
    trending
    • Car Buying
    • Saving Money
    • Insurance
    • Real Estate & Mortgages
    • College
    • Life Events
    Financial Order of Operations
    a Money Guy Course

    Get on the fast track with Money Guy’s nine steps to financial success. Let’s go →

    Explore Topics →
  • Shows
    Shows
    • The Money Guy Show
    • Making a Millionaire
    • Ask Money Guy
    • React
    • Mini Show
    Making a Millionaire
    Featured Show

    Brian and Bo analyze the financial lives of real, everyday people on their way to financial independence. Watch Now →

    Explore the show →
  • Articles
    Articles
    • Beyond Basics
    • Financial FAQs
    • Ultimate Guides
    Beyond Basics
    Make the most out of every dollar.

    A biweekly newsletter about personal finance – go beyond common sense and dig deeper into money topics that matter. Read the Articles →

    Explore Articles →
  • Products
    Products
    • Financial Order of Operations
    • Know Your Number
    • The Money Guy Net Worth Tool
    • Millionaire Mission (Brian's Book)
    Know Your Number
    a Money Guy course

    This deep dive and interactive tool shows you how much wealth you need to retire, when you’ll get there, and how to get there faster! Let’s go →

    Explore products →
  • Resources
    Resources
    • Where To Start
    • Interactive Tools
    • Free Downloads
    Where to Start
    New to the Money Guy universe?

    Jump in and kickstart your financial journey with one of these 3 easy options. Start Here →

    Explore resources →
  • About
    About
    • About the Show
    • About Brian
    • About Bo
    • Press
    • Join the Team!
    The Origin Story
    How it all began...

    Get inside the mind and the major milestones of Brian Preston and Bo Hanson. Unlock the Money Guy Origin Story →

    Get to know Money Guy →
About Us

Change your life by
managing your money better.

Subscribe to our free weekly newsletter by entering your email address below.

Not receiving our emails and want to resubscribe? Click Here

Watch, Listen, Connect

Master your finances in 35 minutes →

ARTICLES

3-Month vs 6-Month Emergency Fund: Which Is Right for You?

Posted January 26, 2023

In this highlight, we discuss the difference between a three month and a six month emergency fund and help you understand which one would be right for you.
Transcript
When it comes to emergency savings, the question of how much to save is an important one. In the wealth accumulation stage, the recommended emergency fund is between three to six months of living expenses. However, as you get later in life and enter the stage of financial independence and retirement, the recommended emergency fund increases to 18-24 months of living expenses. Harley and his wife are currently at two months of emergency savings and are thinking about beefing that up. The question is how to decide if they should aim for six months of living expenses or stick with three months. The answer is not a one size fits all as it depends on individual factors. One factor to consider is how fast you could replace your job. Be honest with yourself and consider the current economic climate and unemployment rates. The longer it would take to replace your job, the more of an emergency fund you should aim for. Another factor to consider is how many people in your household are working. If both you and your spouse have jobs, the risk of both of you losing your job is less than just one breadwinner, so you can aim for a smaller emergency fund. Additionally, if you have been investing long enough and have passive income coming in from sources such as real estate, you can take that into account when deciding on your emergency fund. It's important to remember that your emergency fund needs may change as your life circumstances change. As you progress through different seasons of life, your emergency fund may need to adjust. It's important to consider the worst case scenario and make sure you have enough savings to protect yourself during difficult times.
To learn more about our Financial Order of Operations, click here.

The Money Guy Blog

Read through our thoughts and tips on how to manage your money better.

View more posts

Categories

Saving Money

Tags

emergency fund, personal finance, savings

Free Resources

When Should I Claim Social Security?

Social Security can have big impacts on your retirement. But knowing when to draw Social Security can depend on a…

View Resource

Financial Order of Operations®: Maximize Your Army of Dollar Bills!

Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and…

View Resource

Wealth Multiplier By Age

How much to save every month to become a millionaire.

View Resource

Episodes

time to worry

The State of the Economy in 2025: The Market, Inflation, and More!

Watch Now
maxresdefault 91

How to Master Your Money in 9 Steps

Watch Now
Baby Steps vs. FOO

The Truth About Dave Ramsey’s 7 Baby Steps

Watch Now

Financial FAQs

  • How Much do I Need to Have Saved for Emergencies and Where Should I Keep it?
  • When Is It Ok To Stop Saving So Aggressively and Spend Money On Things I Want?
  • How Does My Pension Factor Into My Net Worth Statement and Retirement Calculations?
  • How Much do I Need to Have Saved for Emergencies and Where Should I Keep it?
  • What’s a Good Stock or Fund to Invest in?

Courses & Tools

How about more sense and more money?

Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.

https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-book.png

Millionaire Mission (Brian’s Book)

Buy Now
https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-book.png

Roth IRA Guide

Buy Now
More Courses And Tools

Articles & Insight

A little knowledge is an amazing thing.

Get your money's worth of answers to your financial questions and more niche topics.

time to worry

The State of the Economy in 2025: The Market, Inflation, and More!

Watch Now
maxresdefault 91

How to Master Your Money in 9 Steps

Watch Now
Baby Steps vs. FOO

The Truth About Dave Ramsey’s 7 Baby Steps

Watch Now
More Blog Posts

Change your life by
managing your money better.

Subscribe to our free weekly newsletter by entering your email address below.

Not receiving our emails and want to resubscribe? Click Here

Watch, Listen, Connect

  • The Money Guy Show
  • Articles
  • Products
  • Resources
  • FAQs
  • About Us
  • Become a Client
  • Media Kit
  • Visit Abound Wealth
Disclaimer   |   Privacy Policy   |   Terms of Use   |   Store FAQs & Return Policy

Copyright © 2025 Money Guy, All Rights Reserved