How much should you have in an emergency fund?

How to calculate your number

Add up the costs you would still have to pay if your income stopped: housing, utilities, groceries, insurance, transport and minimum debt payments. Leave out things you could pause.

How to build it

1. Set a first goal of one month of essential costs.
2. Set up an automatic transfer just after payday.
3. Add extra payslips, bonuses and tax refunds when you can.
4. Refill it after you use it.

Where to keep it

Keep it somewhere safe and easy to reach, separate from your everyday account. A savings account is a common choice, because you can usually reach the money quickly.

What counts as an emergency

Job loss, urgent repairs and unexpected medical costs usually count. Holidays and yearly bills don’t, so save for those separately.

This is general information, not personal financial advice.

Common questions

Should I save or pay off debt first?

Many people build a small starter fund, then focus on expensive debt. The right order depends on your interest rates and situation.

Is six months always better than three?

It gives you more security, but money set aside is also money not used elsewhere. Choose based on how stable your income is.

Do couples need one fund or two?

Either can work. Base the amount on your shared essential costs and how likely you are both to lose income at once.