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The general recommendation for an emergency fund is typically three to six months’ worth of living expenses, including loan commitments. However, the ideal amount varies depending on individual circumstances.

• Job Stability: Those with stable jobs might lean towards the lower end of this range, while self-employed individuals or freelancers with variable income should aim for six to twelve months to safeguard against income fluctuations.

• Personal or Family Needs: People supporting dependents or managing larger households should consider building a bigger reserve to cover additional expenses.

• Income Sources: If your passive income covers your needs, your emergency fund requirements might differ from someone relying solely on active income.