Emergency Fund Basics: How Much Should You Save?

How many months should you cover?

A common starting point is 3–6 months of essential expenses (rent or mortgage, bills, food, transport, minimum debt payments). Closer to 3 months if you're in a stable employed role; closer to 6 months — or more — if you're self-employed, have dependants, or your income is variable.

Essentials, not lifestyle

Size your fund against the bills you can't avoid, not your full monthly spending. In a true emergency you'd cut takeaways, subscriptions and discretionary spending — so you don't need to fund them.

Where to keep it

An easy-access savings account paying competitive interest is the sweet spot. You want the money safe, instantly available, and ideally earning at least something to keep up with inflation.

Avoid tying it up in fixed-term bonds, stocks, or anything with notice periods.

How to build it

Set a monthly transfer on payday and treat it like a bill. Use our savings goal calculator to work out how long it'll take to hit your target at different monthly amounts.

Once it's full, you can redirect that monthly transfer towards a house deposit, pension top-ups, or mortgage overpayments — whatever comes next in your plan.