How Big Should Your Emergency Fund Be? 3 and 6 Months by Salary
Three and six months of take-home pay at four salaries, how long it takes to save at $500 or $1,000 a month, and where to keep it.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
An emergency fund is money set aside for a job loss, a car repair or a big bill, so you don't reach for a credit card. A common target is 3 months of take-home pay, or 6 months if your income is less steady.
How big, and how long to build
| Salary | Take-home a month | 3 months | 6 months | 3 months, saving $500/mo | Saving $1,000/mo |
|---|---|---|---|---|---|
| $55,000 | $3,921 | $11,764 | $23,528 | 23 months | 12 months |
| $80,000 | $5,323 | $15,970 | $31,940 | 31 months | 16 months |
| $110,000 | $7,023 | $21,070 | $42,140 | 40 months | 21 months |
| $150,000 | $9,203 | $27,608 | $55,215 | 51 months | 27 months |
Making it work
- Base the target on your essential spending (rent or mortgage, food, bills, transport), which is usually less than take-home pay.
- Keep it in a separate account you can reach the same day, such as a high-interest savings account or a home loan offset.
- Set up an automatic transfer on payday, even a small one.
- Once it's built, only top it back up after you use it.