The amount of money you should have saved in an emergency fund depends on your financial situation.
If you’ve been saving for retirement, you probably have a lot of money saved up. Then again, if you’re young and just starting out, it may be difficult to save much on a regular basis.
The minimum amount you should have in your emergency fund is 3-6 months of expenses. This is because you need to be able to pay your bills, and you need some money to cover unexpected expenses.
When I say “emergency” I mean things like car repair, medical bills, etc. The most important thing with an emergency fund is having enough money to cover these unexpected expenses.
If you don’t have an emergency fund, then you’ll be forced to make payments on any credit card debt while waiting for your next paycheck or tax return.
This is a very risky situation because if something goes wrong with the car or your health then those payments will be missed and could lead to debt collectors calling on you for payment.
In general, I recommend that people have three to six months’ worth of living expenses in their emergency fund. That way, if something unexpected happens like job loss or medical bills you’ll have enough money to get back on your feet quickly.