Saving 10% of your income is a solid general rule for retirement or long-term goals, but it’s not directly related to emergency funds. Emergency savings are measured not as a percentage of income, but in terms of monthly expenses — because the purpose is to replace lost income for a period of time. If your monthly expenses total $3,000, then an emergency fund of $9,000 to $18,000 (3–6 months) is appropriate, regardless of whether that’s 10%, 20%, or even more of your annual income. Relying on a flat 10% of income might leave some people underprepared and others with too much idle cash. It’s important to calculate your actual living expenses and tailor your emergency fund to those costs. While saving a consistent portion of your income is a great financial habit, the emergency fund should be customized to your lifestyle, not a one-size-fits-all percentage.