I Have 3 Months of Expenses in an Emergency Fund. Should I Keep Padding My Savings or Invest Instead?

A recent SecureSave survey found that 67% of Americans don't have enough money in the bank to cover an unplanned $400 expense. So if you have enough money in your savings account to cover three months of essential expenses, you're clearly in pretty good shape.

In fact, at that point, you may be inclined to consider yourself done on the emergency savings part. And you may be eager to take all of your incoming money that you don't need for bills and invest it in a brokerage account instead. That way, you might snag a higher return than what your savings account pays you in interest, even with rates being more generous today.

But should you really call it quits on the emergency fund front when you've reached the three-month mark? Or should you be aiming higher?

Some people need extra protection

A three-month emergency fund buys you a lot of protection in the face of unplanned bills and job loss. But in some cases, saving beyond that point could be a good idea. In fact, some financial experts, such as Suze Orman, will tell you that you ought to aim for enough emergency savings to cover six months to a year of bills.

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If you're not sure whether to really call your emergency fund complete at the three-month mark, you may want to ask yourself these questions:

Am I the sole earner in my household? If you are, and you have multiple dependents who aren't capable of contributing financially to your household (say, kids in elementary school), then you may want to boost your emergency fund in case you lose your job.

Do I have many non-negotiable bills? It's one thing to cut back on leisure spending and things like cable and streaming services if you're forced out of a job and money gets tight. But if you have many locked-in bills you can't shed, like a mortgage and car payment, you may want to save beyond three months of expenses.

Do I work in a niche industry or have a highly specialized role? If you're a bookkeeper and lose your job, chances are, you'll find another company that needs your services in due time. But if you work a very specific job with unique skills and requirements, you may want to pad your savings in case you're laid off and it takes a lot longer than three months to become gainfully employed again.

A personal but important decision

Investing your money in stocks and other assets could help it grow beyond what a savings account will allow for. So if you have your three-month emergency fund, you may feel comfortable putting your extra cash to work in a brokerage account.

But in some cases, a three-month emergency fund may not cut it. So run through the above questions and ask yourself whether you're really set with three months' worth of savings. If not, you may want to hold off on investing just a bit longer so you can build up more cash reserves.