6 months expenses is a reasonable baseline for a lot of people strictly as an emergency fund in the event of job loss, sudden automotive or medical emergencies,

6 months expenses is a reasonable baseline for a lot of people strictly as an emergency fund in the event of job loss, sudden automotive or medical emergencies, or any other unplanned scenario that might otherwise put you into debt without the emergency fund. If you're in a very secure career that is highly likely to weather a recession, less might be appropriate. If you're in an unstable career or freelance, more might be appropriate. Money for short and mid-term savings goals should also be in something safe like a savings account, CD, or possibly bonds. Money you plan to use in under 3 to 5 years should generally not be invested in the stock market.