Emergency fund
How Big Should My Emergency Fund Be on $6,000 a Month?
The rule of thumb is “three to six months”. On $6,000 of monthly expenses that is a $18,000 spread — which is a lot of money to leave to a rule of thumb.
The short answer
Three months is $18,000, six is $36,000, nine is $54,000. Which one you need is set by how replaceable your income is, not by the rule. Building the $36,000 at $800 a month takes 45 months in a checking account and 42 months at 4% — the account earns you three months of the work.
What each target costs
| Target | Months of expenses | Balance | Months to build at $800/mo |
|---|---|---|---|
| Thin | 3 | $18,000 | 23 |
| Standard | 6 | $36,000 | 42 |
| Conservative | 9 | $54,000 | 60 |
Build times assume a 4% annual rate compounded monthly on the balance as it grows. At 0% the same three targets take 23, 45 and 68 months.
Which number is actually yours
| Your situation | Target |
|---|---|
| Two incomes, in-demand skills, no dependants | 3 months |
| One income, or a specialised role with a long search | 6 months |
| Self-employed, commission-based, or a single income with dependants | 9 months |
| A known large expense inside 12 months | 6 months plus that expense |
The variable is how many months of searching stand between you and the next paycheck. Someone with a 3-week replacement time and someone with a 7-month one do not need the same number.
Where it sits matters more than people think
| Account | Rate assumed | Interest on $36,000 in one year |
|---|---|---|
| Checking | 0% | $0 |
| High-yield savings | 4% | $1,467 |
| Money market | 4% | $1,467 |
The rate is an assumption, not a quote — check what is actually on offer. The point is the shape: the same money, doing the same job, differs by roughly $1,500 a year depending only on which account it sits in. An emergency fund must stay liquid and principal-stable, which rules out anything that can be down 20% on the day you need it.
What this assumes
- $6,000 a month of essential expenses — housing, food, insurance, minimum debt payments, transport. Not your current total spending.
- $800 a month available to save toward the fund.
- A 4% annual rate on savings, compounded monthly.
- No withdrawals during the build.
Every one of these is an input, not a fact about your situation. Change them in the calculators below and the answer changes with them.
Run the math yourself
These calculators give you the same numbers we used above — with your own inputs.
Bottom line
Work out your essential monthly expenses first — most people guess high, because they count their whole budget rather than the part that would survive a job loss. Multiply by the number of months your income would realistically take to replace. Keep it somewhere liquid and boring. Then stop adding to it and send the $800 somewhere it can grow.
Disclaimer. This is educational, not personalized financial advice. Numbers depend on your specific tax bracket, state, and goals. Verify with the IRS, SSA, or a CPA before acting. See our Financial Disclaimer.
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