The size of your emergency fund is a personal matter, but there are some general rules you can follow. CNBC’s expert guide on emergency funds recommends starting with an aim of saving $2,467 for low-income households.
Due to its nature, an emergency fund should be liquid, but that doesn’t mean you should be hiding money in a piggy bank. It’s best to separate it from your checking or main savings account. Two popular options for doing so are high-yield savings accounts and money market accounts.