Sleep Well at Night
The emergency fund isn’t an investment. It’s insurance.
It does not need to earn high returns. It just needs to be there when:
- Your car explodes.
- Your boss fires you.
- Your roof leaks.
The Framework
- Single, Stable Job: 3 months expenses.
- Variable Income / Freelance: 6-9 months expenses.
- Retiree: 12-24 months expenses (cash cushion).
Keep it in a HYSA (High Yield Savings Account) and forget about it. It is not “idle cash”. It is “deployed safety”.