Income volatility changes how you should size a safety net. People with steady W-2 paychecks might be comfortable with a 3–6 month emergency fund because pay is predictable and benefits like unemployment insurance exist. Self-employed workers, freelancers, or contractors — whose revenue can swing monthly and whose benefits may be limited — are often advised to aim for a larger cushion. A larger fund reduces the risk of forced asset sales or high-interest borrowing during slow periods and provides time to find new clients or pivot. Advisors differ on exact numbers based on expense structure and risk tolerance, but the common conservative recommendation for those with variable income is substantially higher than the baseline.