Is it 3 months or 6 months of expenses?

Both are defensible, it depends on how steady your income is and how fast you could replace it. Two stable incomes lean toward 3 months; a single or variable income leans toward 6. Start with a 1-month buffer either way so you are never at zero.

Should the emergency fund be based on income or expenses?

Expenses, specifically your lean, must-pay expenses. Sizing it off income overstates the target, because in a real emergency you cut discretionary spending first.

Where should I keep it?

A separate high-yield savings account: liquid (same-day access), safe (not invested), and out of your everyday chequing so it is not accidentally spent. The goal is certainty, not returns.

Emergency fund or invest first?

Secure a small starter buffer first so a flat tire does not become credit-card debt. After that, many people build the fuller fund and invest in parallel rather than fully finishing one before starting the other, momentum matters.

How does Wiggle Budget help me hold the line?

Keep the fund as a separate savings account so it stays out of your spendable "chequing" balance, and let the timeline project your real cash forward, so you can see what is genuinely safe to spend without dipping into the fund.

How much emergency fund you need: 3 to 6 months of lean expenses, how to size it, and where to keep it

How many months to keep, how to size your number from real monthly costs, where to keep it, and how to build it without stalling your investing.

How many months to hold

Starter, 1 month. While you still carry high-interest debt, enough to avoid new debt for a small shock.

Standard, 3 months. Stable, predictable income with two earners or in-demand skills.

Cautious, 6 months. Single income, variable pay, commission, or a role that takes longer to replace.

Size it on needs, not your whole budget

Add up only what you must pay in a lean month, rent, utilities, groceries, insurance, minimum debt payments, transport. That bare-bones number is what one month of runway actually costs, and it is smaller than your normal spend.

Pick your month count

High-interest debt? Hold a 1-month starter and attack the debt first. Otherwise 3 months for stable dual income, 6 for single or variable income. Multiply your lean monthly number by that count.

Keep it boring and reachable

A high-yield savings account, separate from your chequing so it is out of sight but same-day accessible. Not invested, not locked up, the job of this money is certainty, not growth.

Build it without stalling everything else

Fund the starter fast, then split new savings between the fund and investing so momentum on both continues. Automate the transfer on payday so it happens before you can spend it.

Emergency fund questions

Is it 3 months or 6 months of expenses?: Both are defensible, it depends on how steady your income is and how fast you could replace it. Two stable incomes lean toward 3 months; a single or variable income leans toward 6. Start with a 1-month buffer either way so you are never at zero.
Should the emergency fund be based on income or expenses?: Expenses, specifically your lean, must-pay expenses. Sizing it off income overstates the target, because in a real emergency you cut discretionary spending first.
Where should I keep it?: A separate high-yield savings account: liquid (same-day access), safe (not invested), and out of your everyday chequing so it is not accidentally spent. The goal is certainty, not returns.
Emergency fund or invest first?: Secure a small starter buffer first so a flat tire does not become credit-card debt. After that, many people build the fuller fund and invest in parallel rather than fully finishing one before starting the other, momentum matters.
How does Wiggle Budget help me hold the line?: Keep the fund as a separate savings account so it stays out of your spendable "chequing" balance, and let the timeline project your real cash forward, so you can see what is genuinely safe to spend without dipping into the fund.