A soon-to-be retired couple wants to know if they should start an emergency fund and how much they should put in it. Check out this blog post that explains it. When we went through the recession in 2008/2009, we were so thankful that our emergency fund was easily accessible. While a person’s emergency fund will vary from situation to situation, most financial experts agree that a fully stocked emergency fund should hold between three to eight months of monthly expenses. Perhaps the biggest perspective shift you can have with your Dave Ramsey emergency fund (whether it’s baby step 1 or baby step 3) is that it’s not an investment — it’s INSURANCE. Or as Dave Ramsey calls it, the Fully Financed Emergency Fund. What I learned from Dave Ramsey and his Financial Peace University is that until you have a fully funded emergency fund, financial peace is a breath away from disintegrating. Dave Ramsey: You always need an emergency fund. WoooHooo! On to the big 6 Month Emergency Fund! Dave Ramsey prefers three to six months of expenses, while Suze Orman prefers eight months of expenses in a fully stocked emergency fund. Curious why some charts are Free and others aren't? I’m 28 and debt-free, but I don’t have anything saved for emergencies. The idea of saving for a rainy day is nothing new. NEW - Both the Original black background and the Outline versions in one file, you get them both automatically! If your emergency fund won't cover the emergency you have, take a deep breath, and follow these steps. Dear Dave: Do you think I should stop making contributions to my 401(k) for a year so I can save up an emergency fund? Baby step #3 of Dave Ramsey’s Financial Peace University might just save you from falling back into the debt trap.