Serious question, does anyone actually use the emergency fund rule of thumb?

I read that 63% of Americans can't cover a $500 emergency expense. But I also see financial gurus saying keep 6 months of expenses saved up. Which one is realistic for most people here, the hard stat or the general advice?

2 comments

2 Comments

wyatt_lee16d ago

$500 is a solid starting goal because it covers most real emergencies like a tow truck or a urgent care copay. I keep that in cash at home then work toward $1k - 3 months expenses in savings after that. Way more realistic than some guru's six month number when you're scraping by.

wright.jesse16d ago

Honestly laugh at the idea of six months of expenses when most people are one flat tire away from total financial collapse. The 'experts' who say that probably haven't paid a real electric bill since 1989. Ngl, I'd be thrilled just to have six days of savings that actually counted.