The emergency fund debate, three months or six?

[Tel86]

Standard advice says keep three to six months of essential expenses in cash before doing anything more interesting with money. That range is doing a lot of work though, the difference between three and six months is enormous for most households

The case for the smaller fund is opportunity cost, inflation quietly eats cash and that extra buffer could be working elsewhere. The case for six or more is that emergencies cluster, the boiler dies the same month the car fails and the hours get cut. Anyone who lived through a redundancy tends to sit at the larger end

Where did you land and what pushed you there? Also curious whether people count things like insurance excesses and known annual bills as part of the fund or separately, since that changes the maths completely

[RainyDayFund]

Six months, self employed, non negotiable. Feast and famine income makes three months feel like a coin toss