Start with essential monthly spending
Add housing, utilities, basic food, insurance, transportation, minimum debt payments, health costs, and required family expenses. Exclude spending you could pause quickly.
Three months can be reasonable with stable dual income and strong insurance. Six months or more can make sense for variable income, one-income households, dependents, or specialized work with a longer job search.
Keep the money reachable
Use a federally insured savings account with no meaningful withdrawal barrier. Yield matters, but access and principal safety are the job of this money.