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How much should you keep in an emergency fund?
A practical way to choose a target and build it in stages.
A common guideline is three to six months of essential expenses. Start by adding up rent or mortgage, utilities, food, insurance and minimum debt payments.
If your income varies or you support others, aim toward the higher end. Build it in stages: one month first, then three, then six.
Keep the fund somewhere safe and easy to reach, such as a high-yield savings account, and give it a name so you do not spend it by accident.
