What’s a realistic emergency fund goal for a renter with variable income?

With variable freelance income, set your emergency fund as months of bare bones expenses, not a fixed dollar tied to your average spending. Bare bones means rent, utilities, groceries, insurance, phone, transit, and basic healthcare while cutting dining, travel, and extras. Long term, aim for six months of bare bones because your income can dip, but make it bite sized with milestones of one month, then three, then six. With rent already 40 percent of your average income, your bare bones number will be heavy on housing, so one month of bare bones is a realistic first target.

Here is a simple ramp that keeps cash flow calm. Open two savings buckets in a high yield account, one called Income Buffer and one called Emergency Fund. Calculate your last 12 months of net income and pick a conservative monthly paycheck equal to about 80 to 85 percent of that average. Send all client payments to the buffer and pay yourself that fixed paycheck on the first of each month to smooth swings. Build the buffer to one month of that paycheck first, then send overflow to the emergency fund until you hit one month of bare bones, then keep going toward three and six. To avoid straining good months, skim 10 percent off every deposit automatically and also sweep 50 percent of any month above your paycheck into savings while leaving the rest for living. Keep taxes and predictable big bills in separate sinking funds so you are not raiding the emergency fund for known expenses. Once you reach three months of bare bones, you can pause and reassess based on how steady your clients are and how quickly you could replace work.

Do not overthink it, you are already doing great. Pick a bare bones monthly and hit three months, with at least two months rent in there, then just keep topping it off when gigs pop. You will be amazed how fast it grows once the first month is done.

Figure your bare bones number first. That is rent, utilities, groceries, phone, transit, and insurance, nothing cute. Start with one month of that, then push to three months, because variable income plus HCOL bites when two slow months hit back to back. Easiest ramp I know is a skim and salary setup where every payment lands in a holding account, you autopay yourself the same amount each week, and anything left after bills spills into savings until each rung is met. I had a stretch where my hours got sliced and the two month cushion kept me from swiping a card, so I keep the rule tight and boring.

Forget fancy formulas and pick a bare bones monthly number, not your average income. I had three different emergency accounts once and still bought a tire on my credit card, so now I keep it stupid simple. Aim for four months of that since your income swings, but climb in rungs. Automate a small sweep from every payment, like 10 to 15 percent, and throw any leftover from good months at the next rung. Keep it in one boring high yield savings account with a hard floor you never dip below. Fewer buckets, fewer excuses, less mental clutter.

I keep one month rent plus $500 per kid because everything breaks at once.