5 Things Most People Get Wrong About Emergency Funds

(Especially High-Earning 30-Somethings)

Most people wildly overestimate what their emergency fund needs to be.

And it’s not because they’re uninformed.

It’s because they care, about their families, their stability, their careers, their responsibilities, their mortgages, their kids, their pets. 

They want to “do it right,” and traditional advice makes it sound like “doing it right” requires a mountain of cash sitting on the sidelines.

If you’re a high-earning 30-something, you’ve definitely heard this one:

“Save 6 to 12 months of expenses in cash.”

A part of you thinks… that seems intense, but maybe that’s what responsible adults do?

Here’s the truth:

That advice wasn’t built for you.
Not your income.
Not your skill set.
Not your earning trajectory.
Not the speed at which people like you bounce back.

High-earning 30-somethings need a different approach, one that’s secure, strategic, and actually makes mathematical sense.

Let’s get into what most people get wrong.

1. Your Emergency Fund Is Your First Line of Defense, Not Your Entire Defense System

Some people treat an emergency fund like a bunker, a giant stash meant to cover every worst-case scenario imaginable.

But real-life emergencies don’t demand that kind of cash pile.

Flat tire? Broken phone? HVAC meltdown?

It goes on your credit card first. You transfer from savings after.

No scrambling. No suitcase of cash required.

Your emergency fund does not need to support your entire life for half a year.

It just needs to absorb life’s surprises without wrecking your plan.

And here’s a point almost no one talks about:

One of the biggest mistakes wealthy people make is keeping too little cash.

Back when I worked with ultra-rich clients on Wall Street, I saw this constantly. They hated keeping idle cash, so when something unexpected happened, the only place they could pull from was their investment account.

That is expensive (not to mention taxable).
That is avoidable.
And that is harmful to future you.

You’re not above life’s curveballs.

But you are above sabotaging your own compounding because you were irrational about holding cash.

A right-sized emergency fund keeps you from raiding your investments when you shouldn’t.

2. High-Earning 30-Somethings Don’t Sit Unemployed for Six Months

Generic finance content is built for the general population, not for high-income professionals in their prime earning years.

People like you:
• land jobs faster
• have stronger networks
• have skills that are in demand
• command salaries that companies compete for

That’s why our rule is simple:

Three months of fixed expenses.

Not six.

Not twelve.

Not “but I have a kid so maybe more.”

At Stash Wealth, we think of fixed expenses as the costs you can’t turn off if life went sideways, things like housing, groceries, insurance, utilities, transportation, childcare, and any other non-negotiables.

They’re the baseline it takes to keep your life running, not the extras you could pause or scale back.

Fixed expenses already capture your real life: rent or mortgage, childcare, insurance, groceries, utilities, transportation, pet meds, all of it.

The only people who might need more are those in industries with truly irregular hiring cycles (Broadway actors, niche performers, highly specialized roles). 

For everyone else, three months is the number.

3. Oversaving for Emergencies Slows Down Every Other Goal You Have

Every dollar you push into an oversized emergency fund is a dollar you’re not using to:

• invest
• build wealth
• reduce future tax burden
• fund life goals
• optimize your cash flow
• elevate your lifestyle responsibly

Even at today’s high interest rates, cash loses purchasing power over time.

So yes, you need an emergency fund, but an oversized one isn’t “extra responsible.”

It’s just costing you.

Security is important.

Stagnation is not.

4. Your Situation Is Almost Never the Exception

This is the pushback we hear the most:

“But I have a baby.”
“But I live in a high-cost city.”
“But we bought a house.”
“But my dog is medically dramatic.”
“But I’m self-employed.”

All valid concerns, and all already included in your fixed expenses.

Emergency funds aren’t calculated off some generic national average.

We base them on your unavoidable costs.

If it’s part of your real life, it’s baked into the math.

The number doesn’t change because of your circumstances.

It is your circumstances.

Only in rare industries with odd hiring rhythms does the number need adjusting.

5. What If You’re Truly Starting From Scratch?

Every now and then, you’ll see advice like:

“If you’re struggling, at least save $1,000.”

We don’t hate that.

If $1,000 is where you start, great, start.

Just don’t stop there.

That number is training wheels.

A beginner milestone.

A way to break the seal and build momentum.

But your true goal is still three months of fixed expenses.

That’s where the real protection kicks in.

So What’s the Real Number?

Three months of fixed expenses.

In a high-yield savings account.

Accessible when you need it, out of the way when you don’t.

That’s enough to keep you safe.

Enough to keep you smart.

And enough to make sure you never have to raid your investment account in a panic.

More than that?

It doesn’t buy you more stability.

It just slows you down.

The Bottom Line

The goal of an emergency fund is security, not fear-based stockpiling.

It’s a safety net, not a moat.

High-earning 30-somethings need a right-sized cushion that protects their life without sabotaging their long-term goals.

Build the cushion.

Stop at three months.

Then send the rest into the future you’re actually excited about.