According to financial experts, what is the general rule of thumb for saving for emergencies?

The general rule of thumb for saving for emergencies is three to six months' worth of living expenses, which is why this choice is considered the best answer. Financial experts suggest this range because it provides a cushion to cover unforeseen circumstances such as job loss, medical emergencies, or unexpected repairs. Having an emergency fund of this size helps ensure that individuals can maintain their standard of living without falling into debt during difficult times.

This length of time gives people a solid timeframe to find a new job or recover from an unexpected financial hit without the added stress of immediate financial insecurity. Extra savings beyond this range can be beneficial, but the three to six months' guideline is widely recommended as a balanced approach to safeguard one's financial stability during emergencies.