Emergency funds are the classic financial safety net: a small, flexible stockpile of cash meant to stop surprises from turning into disasters. The idea goes back to simple household budgeting practices but gained institutional momentum after the Savings & Loan crisis and the 2008 recession, when many households found short-term credit unreliable. Behavioral science shows people are more likely to spend windfalls and more likely to save when the process is automatic or earmarked. Practical placement matters: keep your emergency fund somewhere liquid and low-friction — accessible without penalty, but not so handy that impulse spending wins. Many people split goals into buckets: a 30-day buffer for immediate bills, plus an additional 2–6 months of essential expenses for longer disruptions. A good rule of thumb is to size the fund to cover essential recurring costs (rent/mortgage, utilities, insurance, groceries) rather than lifestyle extras. This question focuses on the common starting recommendation and why people choose it: it’s large enough to weather short job disruptions but small enough to build in months rather than years. Think practical, not perfect: the aim is to stay afloat while you regroup.