An emergency fund covers essential expenses during job loss, major illness, or other income disruption. The right size depends on your income stability.
Target sizing
- Dual-income stable jobs: 3 months
- Single income stable: 4 months
- Variable income or sector volatility: 6 months
- Self-employed or commission-based: 9 months
Hold it in a high-interest savings account or TFSA-wrapped HISA. Prioritize liquidity over yield for this money.