How to Use the 3-6-9 Rule to Save for Emergencies Depending on Your Income

When an unexpected expense hits Kenyans like a job loss, a hospital bill, or a car breakdown, many Kenyans turn to mobile loans, friends, or shylocks. But these quick fixes often come with high interest rates and financial stress.

On the other hand, an emergency fund gives you breathing room and provides a financial cushion that keeps your life running smoothly when things go wrong.

For many Kenyans, the big question is ‘how much should you actually save for emergencies?’

That’s where the 3-6-9 rule comes in. It’s a simple yet helpful guide that helps you decide how much your emergency fund should be, depending on your income stability and lifestyle.

What is the 3-6-9 rule?

The 3-6-9 rule suggests that one should save three to nine months’ worth of living expenses, depending on how secure your income is. The idea is that the more uncertain your income, the bigger your emergency fund should be.

• 3 months – This is ideal for those with a stable income (government employees, long-term contract staff, or dual-income households). This is also ideal if you have dual incomes in your household or when you have no dependents (like children).
• 6 months – This is suitable for those with moderate income stability (private-sector workers, small business owners with regular cash flow). This is also ideal when you are the sole earner in your household or you have dependents who rely on your income. Also suitable in cases when the individual owns their own homes.
• 9 months – This applies to those with unstable or irregular income (freelancers, casual workers, or small traders whose earnings vary month to month).

How to Apply the 3-6-9 Rule 

Step 1: Calculate Your Bare-Minimum Monthly Expense

Before you can calculate your 3, 6, or 9-month target, you must determine your essential monthly expenses. This is the non-negotiable amount you need to survive, such as rent, food, utilities like tokens, transport, health insurance, and loan repayments.

In this case, we can use an example of someone whose expenses are Ksh55,000.

Step 2: Apply the 3-6-9 Rule

Now, depending on your income situation, multiply that monthly amount by 3, 6, or 9 to find your emergency fund goal.

For instance, those with stable income need to build an emergency fund of Ksh165,000 (Ksh55,000 × 3) while those with moderate stability aim to raise Ksh330,000 (Ksh55,000 × 6). Those with unstable income need to raise Ksh495,000 (55,000 × 9). So if you’re a government teacher earning a steady salary, aim for about Ksh 165,000, and if you run a small business or work on commission, Ksh330,000 to Ksh495,000 would be more realistic for your safety net.

Step 3: Build the Emergency Fund

You don’t have to do it all at once. Let’s say your goal is Ksh330,000 (six months’ worth). You can break it down into smaller, achievable targets, such as saving Ksh10,000 per month. At the end of the year, you’ll reach Ksh120,000 in a year.

If you keep saving at the same rate, you’ll hit your full goal in about two years and nine months.

The best way to build your fund gradually is to start small and stay consistent.

Step 4: Where to Keep Your Emergency Fund

Ideally, your emergency fund should be easy to access so that emergencies require you to make payments almost immediately. You can, therefore, explore;

1. Money Market Funds (MMFs) – These are great for emergency savings because they earn interest (often 10–12% per year) and allow quick withdrawals.
2. Savings SACCO Account – If your SACCO allows easy access for savings.,
3. Mobile saving platforms

After choosing the best option, set up a standing order or mobile transfer on payday so the money moves into your emergency account before you can spend it.

Your emergency fund isn’t for holidays or school shopping. It’s for genuine, unexpected expenses that threaten your financial stability, such as a job loss or salary delays, major medical bills not covered by insurance, urgent home or car repairs, and unexpected travel for family emergencies.