Been seeing different accounts of how much emergency funds to put aside, some saying 6-12 months expenses while others preach 6-12 months of salary. How much is too much emergency funds ?

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Currently, I have around 4 months of take home pay set aside for emergency funds. I have been allocating around $650 every month to it with the intention of getting it to reach around $20k (~6 months salary) .

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I have seen many different accounts of emergency fund amount online, with some simply advocating for 6-12 months of expenses while others advocate a much higher amount.

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For myself, I do not spend much every month (around 400-500/month) and don't have much big ticket items lined up as well. However, my parents are retiring soon and I expect to see my expenses growing in the future, both due to inflation and also new expenses that I may have to take up as I am set to be the sole breadwinner of my family.

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On the other hand, being someone who is relatively young (mid 20s) with a long investment horizon, I find the opportunity cost of setting aside money in a rather safe and liquid account for emergency as compared to investing in assets that gives higher returns i.e equities to be pretty significant too.

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As the title suggests, what should be the appropriate amount of funds that should be set aside for emergency right now ? Am I setting aside too much or too little ? Do I need to factor in family expenses into the fund or just my own expenses ?

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