How do I decide between three months and twelve months of emergency savings?

The right number depends on how quickly your income could recover and how stable it is. Point to a smaller cushion, roughly three months of essential expenses, if you have a stable dual income, a marketable skill, and no dependents. Point to a larger cushion, six to twelve months, if you are the sole earner, work in a volatile industry, are self-employed, are on a work visa, or have people depending on you. Also weigh your fixed costs: a household with a big mortgage and childcare needs more buffer than a lean renter. Rather than guessing, size it to your actual bills, not your take-home pay, since you only need to cover necessities in a true emergency. Model your specific number with the Emergency Fund Calculator at wealthserene.com/tools/emergency-fund.