How to Calculate an Emergency Fund

According to a Bankrate and U.S. News survey in 2026, about half of American households would struggle to cover a $1,000 unexpected expense without going into debt. One car repair. One emergency room visit. One broken appliance.

Now think about what it costs to run your family every month. If something went wrong tomorrow — a job loss, a medical emergency, a major home repair — how long could your family keep going?

That is the question an emergency fund is designed to answer. And for most families, including a lot of families doing well on paper, the honest answer is not very long.

In this episode of the Dad Math Podcast, Zachary Mineur, CFA, CFP® breaks down emergency funds: how much you need based on your specific situation, where to keep it, and the most common mistake people make that leaves them exposed when things go sideways.