How much emergency fund should I have in Canada?

In Canada, a solid emergency fund target is 3–6 months of essential expenses. If your income is irregular, you’re self-employed, have dependents, own a home, or work in a volatile industry, aim for 6–12 months.

A practical way to size it:

1. Add up only essentials: rent/mortgage, utilities, groceries, insurance, debt minimums, transport, childcare, medication, phone/internet.
2. Multiply by your risk level:
   • Stable dual-income household: 3 months may be enough
   • Stable single-income household: 4–6 months
   • Self-employed/commission/contract work: 6–12 months
   • Homeowner or dependents: lean toward the higher end
3. Keep it liquid and safe: a high-interest savings account, not stocks or crypto.

Example: if your essential spending is C$3,500/month, a reasonable target is C$10,500–C$21,000; if you’re self-employed or high-risk, C$21,000–C$42,000 may be more appropriate.

If that feels too high, start with a first milestone of C$1,000–C$2,500, then build toward 1 month of essentials, then 3 months.