Work out how much emergency savings you need, how long your money would last if income stopped, and what real-life costs your safety pot could cover.
Enter your essential monthly costs, current savings and how much you can add each month.
This is where the number becomes real. Your emergency fund is there for the things you cannot perfectly predict.
A good safety pot protects you from borrowing when life throws something expensive at you.
A starter fund stops small problems becoming credit card debt.
Car MOTs, Christmas and known repairs should have their own planned savings pot.
Your emergency fund should be quick to access, but not so visible that you spend it casually.
Mortgage changes, children, pets, self-employment or a new car can all increase the target.
If you already have 12 months covered, extra cash may be better used for debt, pension, ISA or investments.
A monthly standing order makes the fund grow without relying on willpower.
Common questions people ask when building a financial safety net.
A common target is three to six months of essential expenses. Some households need less, while families, homeowners and self-employed people may need more.
Many people benefit from building a small starter fund first, such as £500 to £1,000, then focusing on expensive debt while continuing to save gradually.
Keep it somewhere safe and easy to access, such as an easy-access savings account. Avoid locking all of it away where you cannot reach it quickly.
An emergency fund is for unknown problems, such as sudden job loss or a roof leak. A sinking fund is for known upcoming costs, such as car maintenance, Christmas or planned repairs.
It depends on your risk. A 12-month fund can be useful for self-employed people or families with high commitments. If you are already very secure, excess cash may work harder elsewhere.
Use these to work out where the emergency fund money can come from.
The best emergency fund is built before the boiler breaks, the car fails or income stops.
