The Personal Finance Podcast How Much Should Be in Your Emergency Fund (By Age!)
Jun 16, 2025
Discover the essential role of emergency funds and how they should evolve with age. Learn about the '136 method' to determine your savings goals, tailored for specific life stages. Explore the importance of maintaining these funds during significant life changes, from your 20s to home ownership. Hear how generational shifts in savings behavior reflect changes in priorities, particularly among Gen Z. This informative discussion will help you prepare for life's unexpected expenses with confidence.
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The One-Three-Six Method
- Use the one, three, six method to build your emergency fund starting with one month of expenses.
- Save this money in a high yield savings account to reduce financial stress and prepare for emergencies.
Emergency Fund in Your 20s
- In your 20s, focus on building your emergency fund foundation using the 136 method.
- Achieve at least six months of expenses saved to stabilize your financial future and investments.
Emergency Fund in Your 30s
- In your 30s, reassess your emergency fund needs especially if you have kids or a mortgage.
- Aim for a full six months of expenses to cover increased responsibilities and life changes.