Tiffany's Take: How Much Should My Emergency Fund Be? | Ep. 176

• If starting from nothing, the first goal is to save $1,000. This aligns with Dave Ramsey's concept of a baby emergency fund, which Tiffany agrees with despite disagreeing with many of his other teachings.

It gives you the confidence that you can actually do this. And that's what I love about having such a small goal to begin with, is that once you hit that goal, you're like, oh, you know, I can actually do this.

• Tiffany offers a savings challenge on her website to help reach $1,225, which covers the baby emergency fund goal.

• Once past $1,000, aim for at least three months of expenses. Determine this by reviewing your budget to calculate monthly survival costs.

• For those in stable positions, three months may suffice. The next target is six months, which should be enough for most people.

If you feel comfortable, because I have some clients where they're like, no, Tiffany, I need a year's worth. If that's what makes you comfortable... go to the year.

• Tiffany recommends high-yield online savings accounts like Ally Bank (not sponsored), Marcus, or Capital One.

• Higher interest rates than brick-and-mortar banks
• Out of sight, out of mind prevents unnecessary checking and spending
• Transfer delays of a few days discourage impulsive withdrawals

• Tiffany sets up automatic recurring transfers to savings and rarely checks the balance except during account reconciliation.