Set aside an emergency fund equal to 3–6 months of living expenses in a readily accessible account

There is no direct monetary cost. The trade-off is forgoing higher returns; the funds must be kept in a checking account, money market fund, or any deposit account that allows immediate withdrawals. The real challenge lies in resisting the urge to dip into the fund while saving it up.

An emergency fund eliminates the need to borrow money or sell investments at a loss during unexpected events like job loss or illness. For details on the minimum annual interest rates for consumer loans and credit card payments, see Section 7 of this chapter (which advises against relying on minimum credit card payments).

国务院 (2015). 存款保险条例（国务院令第 660 号，第五条）. https://www.gov.cn/zhengce/content/2015-03/31/content_9562.htm；中国人民银行、国家金融监督管理总局、中国证券监督管理委员会 (2025). 金融机构客户尽职调查和客户身份资料及交易记录保存管理办法（令〔2025〕第 11 号，第七、二十八、五十二条，2026 年 1 月 1 日起施行）. https://www.pbc.gov.cn/tiaofasi/144941/144957/5916164/index.html；中共上海市委金融委员会办公室 (2025-12-01). 央行等三部门发布新规，银行取钱不再「一刀切」式询问：「文件删除了“个人存取现金超5万元需登记资金来源”」. https://jrj.sh.gov.cn/ZXYW178/20251201/1da352ee5150414b8db1ce248f4e37c6.html

The 3–6-month guideline is common experience, without an identified official or academic original source, so it is grade C. Base the amount on fixed monthly expenses, not income. The new anti-money-laundering rules effective January 1, 2026 no longer require all individuals depositing or withdrawing more than 50000 yuan in cash to register the source. Banks must understand the source and use of funds when money-laundering risk is higher, rather than ask everyone indiscriminately. Even when restricting transactions, banks must ensure basic, essential financial services such as healthcare and social security. Medical bills can be paid directly by transfer or card without first withdrawing cash. This is not investment advice.