How emergency funds should change after a job switch

A job change resets your risk. New employers often have a waiting period for health insurance, a different pay cycle, and no paid leave in the first months. The three-month cash cushion that felt fine at the old job can be too thin. Recount monthly essentials under the new paycheck: rent, food, transport, and the real health premium, not the old payroll deduction. If you moved from salary to hourly or contract work, stretch the fund toward six months. Income that varies week to week needs a larger buffer. Keep the money in a separate high-yield savings account, not in the checking account that gets the new direct deposit. The point is friction. If it sits next to grocery money, it will be spent on the first uneven month. Rebuild the fund before you raise retirement contributions above the match. A 401(k) loan or a credit card is a worse backup than three months of cash, even if the market is up in the first quarter at the new job.