Financial experts typically recommend building an emergency fund that can cover 3 to 6 months of essential living expenses. This includes things like rent or mortgage, utilities, groceries, insurance, and transportation — the basic costs necessary to maintain stability during a job loss, medical emergency, or unexpected financial shock. The goal is to provide a cushion so you don't have to rely on credit cards or loans during hard times. The exact size of the emergency fund may vary depending on your job stability, number of dependents, and overall financial risk. For someone with a high-risk job or variable income (like freelancers), a 6-month fund is often better. For those with a very stable job, 3 months might suffice. This reserve should be kept in a highly liquid, low-risk account — like a high-yield savings account — so it’s accessible when needed. Building this fund is a key first step in financial planning and long-term resilience.