How much emergency fund should I have in Canada?

In Canada, a practical emergency fund target is usually 3–6 months of essential expenses, kept in cash or a high-interest savings account. If your job/income is unstable, you’re self-employed, have dependants, own a home, or have high fixed costs, aim closer to 6–12 months.

A good way to set the number:

1. Add up only essentials: rent/mortgage, utilities, groceries, insurance, debt minimums, transportation, childcare, medications, and basic phone/internet.
2. Multiply that monthly amount by your target months.
3. Start with a first milestone of $1,000–$2,500 if you’re building from zero, then work toward 1 month, 3 months, and 6 months.

Examples:

• Essentials are C$3,000/month: target C$9,000–C$18,000 for 3–6 months.
• Essentials are C$5,000/month: target C$15,000–C$30,000 for 3–6 months.
• Self-employed household spending C$5,000/month: C$30,000–C$60,000 may be more appropriate.

Keep it separate from your everyday chequing account, easy to access, and not invested in stocks or crypto. A TFSA can work only if you have room and the money is held in safe cash-like savings, but don’t use investments for money you may need urgently.