Best States for Emergency Savings
The size of the emergency fund you need depends heavily on where you live. In low-cost states, 3–6 months of expenses might mean $8,000–$15,000, while the same safety net in a high-cost state could require $20,000–$40,000+. This guide ranks all 50 states by how affordable it is to build an adequate emergency fund.
- Oklahoma ranks #1 with the lowest cost of living at 83.5.
- Hawaii ranks last at 184.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Mississippi, Kansas, West Virginia.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by cost of living
| # | State | Cost of Living | Median Rent (2BR) | Median Income | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83.5 | $1,136 | $66,148 | Emergency Fund Calculator |
| 2 | Alabama | 85 | $1,087 | $66,659 | Emergency Fund Calculator |
| 3 | Mississippi | 86.2 | $1,041 | $59,127 | Emergency Fund Calculator |
| 4 | Kansas | 87.6 | $1,129 | $75,514 | Emergency Fund Calculator |
| 5 | West Virginia | 87.9 | $1,000 | $60,798 | Emergency Fund Calculator |
| 6 | Indiana | 88.3 | $1,255 | $71,959 | Emergency Fund Calculator |
| 7 | Iowa | 88.6 | $1,112 | $75,501 | Emergency Fund Calculator |
| 8 | Missouri | 88.6 | $1,154 | $71,589 | Emergency Fund Calculator |
| 9 | Tennessee | 88.9 | $1,363 | $71,997 | Emergency Fund Calculator |
| 10 | Arkansas | 89.1 | $1,083 | $62,106 | Emergency Fund Calculator |
| 11 | New Mexico | 89.9 | $1,308 | $67,816 | Emergency Fund Calculator |
| 12 | Georgia | 90.6 | $1,551 | $79,991 | Emergency Fund Calculator |
| 13 | North Dakota | 90.7 | $1,088 | $77,871 | Emergency Fund Calculator |
| 14 | Texas | 90.7 | $1,557 | $79,721 | Emergency Fund Calculator |
| 15 | Louisiana | 91.1 | $1,138 | $60,986 | Emergency Fund Calculator |
| 16 | Nebraska | 91.3 | $1,200 | $76,376 | Emergency Fund Calculator |
| 17 | South Carolina | 91.9 | $1,352 | $72,350 | Emergency Fund Calculator |
| 18 | Kentucky | 92.5 | $1,125 | $64,526 | Emergency Fund Calculator |
| 19 | Minnesota | 93.4 | $1,504 | $87,117 | Emergency Fund Calculator |
| 20 | Ohio | 93.7 | $1,238 | $72,212 | Emergency Fund Calculator |
| 21 | Wyoming | 93.7 | $1,079 | $75,532 | Emergency Fund Calculator |
| 22 | Michigan | 93.9 | $1,327 | $72,389 | Emergency Fund Calculator |
| 23 | South Dakota | 94.1 | $1,094 | $76,881 | Emergency Fund Calculator |
| 24 | Illinois | 95.1 | $1,579 | $83,211 | Emergency Fund Calculator |
| 25 | Pennsylvania | 96.2 | $1,501 | $77,545 | Emergency Fund Calculator |
| 26 | North Carolina | 96.6 | $1,410 | $73,958 | Emergency Fund Calculator |
| 27 | Wisconsin | 97.4 | $1,287 | $77,488 | Emergency Fund Calculator |
| 28 | Virginia | 99.1 | $1,735 | $92,090 | Emergency Fund Calculator |
| 29 | Utah | 100.6 | $1,582 | $96,658 | Emergency Fund Calculator |
| 30 | Florida | 100.7 | $1,973 | $77,735 | Emergency Fund Calculator |
| 31 | Nevada | 100.7 | $1,733 | $81,134 | Emergency Fund Calculator |
| 32 | Delaware | 101.7 | $1,675 | $87,534 | Emergency Fund Calculator |
| 33 | Idaho | 101.7 | $1,410 | $81,166 | Emergency Fund Calculator |
| 34 | Colorado | 101.8 | $1,895 | $97,113 | Emergency Fund Calculator |
| 35 | Montana | 105.9 | $1,558 | $75,340 | Emergency Fund Calculator |
| 36 | Arizona | 107.6 | $1,709 | $81,486 | Emergency Fund Calculator |
| 37 | Oregon | 109.6 | $1,738 | $85,220 | Emergency Fund Calculator |
| 38 | New Hampshire | 110.1 | $2,040 | $99,782 | Emergency Fund Calculator |
| 39 | Rhode Island | 111.2 | $1,765 | $83,504 | Emergency Fund Calculator |
| 40 | Vermont | 113 | $1,684 | $82,730 | Emergency Fund Calculator |
| 41 | Connecticut | 114.2 | $2,027 | $96,049 | Emergency Fund Calculator |
| 42 | Maine | 114.6 | $1,681 | $76,442 | Emergency Fund Calculator |
| 43 | Washington | 114.6 | $2,072 | $99,389 | Emergency Fund Calculator |
| 44 | New Jersey | 118.8 | $2,282 | $104,294 | Emergency Fund Calculator |
| 45 | Maryland | 121.1 | $1,955 | $102,905 | Emergency Fund Calculator |
| 46 | New York | 124.7 | $2,520 | $85,820 | Emergency Fund Calculator |
| 47 | Alaska | 129 | $1,591 | $95,665 | Emergency Fund Calculator |
| 48 | California | 140.5 | $2,745 | $100,149 | Emergency Fund Calculator |
| 49 | Massachusetts | 147.8 | $2,527 | $104,828 | Emergency Fund Calculator |
| 50 | Hawaii | 184.8 | $2,568 | $100,745 | Emergency Fund Calculator |
Methodology
How we collected and ranked the data
States are ranked by cost of living index (ascending). Lower cost-of-living states require smaller emergency funds because monthly expenses for rent, utilities, food, and transportation are lower. Data from BLS, Census Bureau, and HUD Fair Market Rent data.
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View all 107 state comparisonsFrequently Asked Questions
How many months of expenses should an emergency fund cover?
Most financial experts recommend 3–6 months of essential expenses. If you have variable income, are self-employed, or are the sole earner in your household, aim for 6–12 months. Start with a $1,000 starter fund, then build toward the full target.
What expenses should an emergency fund cover?
Your emergency fund should cover essential monthly expenses: rent/mortgage, utilities, food, transportation, insurance premiums, minimum debt payments, and any other non-negotiable bills. It should NOT need to cover discretionary spending like entertainment or dining out.
Which states need the smallest emergency fund?
Low cost-of-living states like Mississippi, Oklahoma, Kansas, and Arkansas require the smallest emergency funds because housing, utilities, and food costs are well below the national average. A 6-month fund in Mississippi might be $12,000–$15,000 versus $30,000+ in California or New York.