Now that you have determined that you need $8,200 per month, go back to the original guidelines to see if you fall into the three month emergency fund category or the six month emergency fund category.
If your emergency fund needs three months of cash, you’ll want to have $24,600 in your fund. If your emergency fund needs six months of cash, you’ll need $49,200.
Remember, your emergency fund is for emergencies only! A new pair of shoes is not an emergency. Nor is upgrading your vehicle or taking a cruise. This fund serves as your insurance to keep your head above water in case you are faced with an event that has a major impact on you and your family.