Cash set aside to cover roughly 3–6 months of essential expenses.
An emergency fund is easily accessible cash — usually in a high-yield savings account — reserved for surprises like a job loss, medical bill, or major repair. Having 3–6 months of essential expenses saved lets you handle a shock without taking on debt or selling investments at a bad time.
If your essentials are $4,000 a month, a 6-month emergency fund is about $24,000.