Emergency Plan Preparedness

When to Choose a 6‑Month Emergency Fund Over 3 Months

Use the following checklist to determine whether you need a 6-month (or larger) emergency fund instead of the standard 3-month cushion.

✅ Choose a 6-Month Emergency Fund If Any of These Apply:

• You have inconsistent or variable income
  You’re self-employed, work in sales/commission, do freelance or contract work, or are in a business with seasonal ups and downs.
• Your job is in a high-risk industry
  Industries like tech, manufacturing, retail, startups, or oil & gas are more prone to layoffs, restructures, and downturns.
• You are a one-income household
  If your family depends on one person’s income, losing that income would be a major disruption — so you need a longer financial runway.
• You have dependents or special family circumstances
  Young children, aging parents, special needs, or ongoing medical expenses leave less flexibility to cut back in a crisis.
• You live in an area with a slower job market
  If jobs are hard to find in your field or region, or if relocating is a likely scenario, you’ll need more time and cash buffer.
• You have high fixed monthly expenses
  A large mortgage, car payments, student loans, or daycare costs can make it harder to “trim the budget” in a pinch.
• You value peace of mind
  If you’d rather avoid stress or lifestyle cuts altogether, a 6-month fund gives you the margin to breathe and regroup without panic.
• You face multiple risk factors at once
  For example: a one-income household and industry risk and high debt. These compound your need for a larger emergency fund.