Think you have enough money stashed away in case of a job loss or emergency? Think again.

Many rainy-day funds are failing to keep up with the still-grim reality of today's job market and the higher prices for necessities like food and gas. And many savers aren't making adjustments even after a life-changing event like a wedding, new baby, home purchase or illness.

The oft-quoted rule of thumb is to save three to six months of living expenses in your emergency fund, says Todd Barnhart, executive vice president and head of branch banking at PNC Bank. But many people these days will need nine months to a year of expenses covered just to get by.

Consider that the average duration of unemployment is nearly 40 weeks. That means even if you have six months of expenses saved, there's a good chance you'll use it up before landing a new job. On top of that, falling home values and tighter lending standards have made it harder for many homeowners to rely on a home-equity line of credit in a crisis.

According to a 2011 study by Bankrate.com, 46% of Americans haven't saved enough to cover three months of expenses. And only 24% have saved enough to cover six months or more.

'I think three out of four households need a bigger savings account,' says Greg McBride, seniorfinancial analyst at Bankrate.com. 'The economic climate has changed such that even the people who had a large cushion need a bigger one today.'

Of course, setting aside up to a year's worth of expense money is easier said than done. Start by taking stock of your monthly expenses-mortgage or rent, insurance, utilities, food, clothing, car payments and other bills-to see exactly how much money you would need to get by for nine months to one year.

Then see where you can easily cut back, says Mr. McBride. This may mean fewer meals out, taking less-expensive vacations and reducing other discretionary expenses. That's the money that will help fill the gap in your emergency fund.

Also keep in mind that you'll need to increase the amount you set aside by 3% to 5% a year to keep inflation from eating away at the fund, says Ken Weingarten, a financialadviser in Lawrenceville, N.J.

If trimming spending doesn't get you to that magic number, consider temporarily cutting back on contributions to your individual retirementaccount or 401(k) and using that money to bolster your emergency fund, says Mr. Weingarten. Set a dollar amount that you'll divert to your emergency fund, but don't lower your 401(k) contribution below the amount needed to get a full employer match, he says. Once you've reached your goal, boost your contribution to the retirementaccount back to your previous level.

Then there's the question of where to stash the money. 'You want it to be accessible, you want it to be liquid, but you want it to be out of your immediate reach,' says Mr. Barnhart.

The bad news is the obvious places-savings accounts and certificates of deposit-are still offering almost nil returns. One option is to open a savings account through an online bank, where interest rates tend to be higher. These banks also are less likely to have minimum balance requirements or chargemonthly fees. And having a savings account separate from where you have your checking account lowers the chances that you'll dip into it unnecessarily.

Ally Bank was recently offering online saving accounts with a 0.84% interest rate and Utah-based CIT Bank was offering 0.85%-compared with a 0.1% national average.

Another option is to use a so-called CD ladder. For instance, you can put a smaller amount in a six-month CD, which will have a low interest rate, and larger amounts in higher-yielding nine-month and one-year CDs.

You also can put some of your savings into a Roth IRA, where the money will grow tax-free. For instance, this is a good place to put funds that would otherwise have gone into your regular IRA or 401(k) because you'll still be able to invest the money. And the principal can be withdrawn penalty-free in case of an emergency, says Mr. Weingarten.