Does having a working spouse mean I can keep a smaller emergency fund?

Often yes, but be careful about how you calculate it. With two incomes, one job loss still leaves the other paycheck covering part of your bills, so a three-to-four month cushion may be reasonable instead of six. The trap is sizing the fund to a single salary while your fixed costs assume two. Run the math on whether the surviving income actually covers your essentials; if it does not, you need a bigger buffer to bridge the gap. Also consider correlation risk: if both of you work for the same employer or in the same shaky sector, a downturn could hit both incomes at once, which argues for saving more, not less. Reassess whenever one partner's job situation changes.