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Do You Need An Emergency Fund?

Do you have an emergency fund or have you heard of one? Is it something that everyone should have? While the answer can vary based on who you ask, almost all financial experts will answer with a resounding "yes"! It is also not a one size fits all approach. With all of the changes and uncertainty right now, having an emergency expense plan might offer some serious peace of mind. Read on to see what financial experts suggest for having an emergency fund depending on your situation/stage of life.

Dual Earners

Dual-earning families are recommended to have 3 to 6 months of expenses in cash. Experts recommend the smallest emergency fund for dual earners compared to the other categories below, due to the fact that in the event that one earner loses their job, they still have the other earner's income to help keep the family afloat.

Single Earners

For individuals, or single-earner homes, experts recommend keeping at least 6 months (or more) of expenses in cash. Having this extra cash surplus can help cover expenses while searching for a new job in the event of a layoff, for example, and not leave you or your family in a serious bind.


Keeping 1 year's worth of business expenses is the recommendation for entrepreneurs by financial experts. Having significant excess cash reserves can help small business owners with the economic uncertainty the U.S. is facing, in addition to other unexpected emergency expenses.


Experts are recommending retirees keep 1 to 3 years of cash on hand. They point to the rising inflation and interest rates, and suggest that having excess cash on hand can help protect your assets by not needing to sell investments while the markets are down.

It is important to note that every situation is different, and it is important to discuss your specific situation with your own financial advisor or accountant. This post is not meant as a substitute for professional financial advice.


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