Emergency Fund Calculator
Determine how much you should save in your emergency fund based on your monthly expenses, employment stability, and financial situation.
Important Note: Financial experts generally recommend having 3-6 months of expenses saved in an emergency fund, but your specific needs may vary based on your personal circumstances.
Calculate Your Emergency Fund
About Emergency Funds
Why You Need an Emergency Fund
An emergency fund is a financial safety net that helps you deal with unexpected expenses without going into debt. It provides:
- Financial security during unexpected life events
- Peace of mind knowing you can handle emergencies
- Flexibility to make better financial decisions
- Protection from high-interest debt during crises
Common Emergency Expenses
- Job loss or income reduction
- Medical emergencies
- Urgent home or car repairs
- Unexpected travel needs
- Family emergencies
How to Build Your Emergency Fund
- Start small - Begin with a goal of £1,000
- Automate savings - Set up regular transfers to your emergency fund
- Use windfalls wisely - Direct tax refunds, bonuses, or gifts to your fund
- Cut expenses - Identify areas where you can reduce spending
- Increase income - Consider a side hustle or overtime work temporarily
- Track progress - Celebrate milestones along the way
Where to Keep Your Emergency Fund
Your emergency fund should be:
- Liquid - Easily accessible when needed
- Safe - Not subject to market fluctuations
- Separate - In a different account from everyday spending
Good options include instant access savings accounts, premium bonds, or cash ISAs.