[00:01] of expenses for emergencies, but nobody mentions the fact that the gap between 3 months and 6 months could be $15,000 for some people. So, here is a framework to figure out exactly what you need. First, always start with 3 months of essential
[00:14] expenses. So, that's rent plus food plus insurance and any minimum debt payments. So, let's pretend it's $5,000 a month. Then, your baseline is 5,000 * 3 or 15,000. Now, you want to add one extra month for each of the following that is
[00:27] true. If you have one income in your household, I would add 1 month there's no backup paycheck in this case. If you have a variable income, like if you work on commission, tips, or you freelance, I would add another month. If you have
[00:39] or a parent, I would add another month. Then, if you own your own home, add a are pretty sporadic and they can be really expensive. So, if you're a single-income parent who owns your own house, you would need 6 months since
[00:53] three out of those four apply to you. That would be $30,000. That's nearly double what a dual-income renter with no kids might need. Now, the next time months of expenses in emergency fund, you'll know which number to actually
[01:05] how much you have saved in your emergency fund and follow me for more.