An emergency fund is the foundation of any personal finance plan, but the right amount depends on your situation. Here’s how to size yours as a beginner.

• Start with $1,000: The classic first milestone covers small surprises like car repairs or a medical copay and gets you moving quickly.
• Build toward 3-6 months of expenses: Aim for three months of essential costs, and stretch to six if your income is irregular or you’re a single-income household.
• Keep it liquid: Park the money in a high-yield savings account, not stocks. It needs to be there when you need it, not down 20% in a downturn.
• Automate contributions: Set up a small automatic transfer on payday so the fund grows without relying on willpower.
• Replenish after use: Treat the fund like a fire extinguisher. If you dip into it, refill it before saving for anything else.

Verdict: save $1,000 first, then build toward 3-6 months of essential expenses in a high-yield savings account with automated contributions.