How much emergency funds do I need if I am in a high paying, but not a secure job?

Hi anon,

As a general guide line I would recommend 12 months of expenses, but in your case, you might want to have more, say 18 months of expenses (this does depend on how easy you think you can get a job if you lose your current one). If your job is not secure, you are at higher risk of losing it, thus you'd probably want to have more backup funds so that you have a peace of mind and can focus on your job search instead of worrying if the money will run out.

Usually its recommended to have 3-6 months of income as emergency funds. So if you earn 5k a month, it should be around 15k to 30k of funds.

Another way to look at it is to have 6 months of expenses (instead of income) as emergency funds.

The number of months should be flexible to suit your needs. Ask yourself if you were to be out of a job, how many months would you need to secure another job?