Maintain 3-6 months of total housing expenses including PITI and maintenance in liquid savings. On a $2,500/month PITI, that means $7,500 to $15,000. This covers unexpected repairs, job loss, or major system failures without financial stress.
How Much to Save
3-6 months of PITI plus maintenance. Minimum $5,000 for immediate repairs.
What It Covers
Major HVAC replacement, roof repair, plumbing emergency, job loss, or medical emergency.
Where to Keep It
High-yield savings account, accessible within 1-2 business days.
How to Build It
Save $100-$500/month until target reached. Automate the savings.