Key points
- Three months of essentials is the standard target; six if income varies
- Keep the fund in a separate account you can't easily dip into
- Automate a fixed transfer on payday rather than relying on willpower
- Decide what counts as a genuine emergency before you need to decide under pressure
How much is enough
Three months of essential outgoings is the standard target for most people; freelancers or those with variable income are often better served by six.
Keep it genuinely separate
A savings account you can't tap with your everyday debit card removes the temptation to dip in for non-emergencies — physical or app-based separation both work.
Building it gradually
A fixed automatic transfer on payday, even a small one, builds the fund faster than an occasional larger transfer you have to remember to make.
What counts as an emergency
Boiler breakdowns, job loss and unplanned car repairs count; a sale on something you wanted doesn't — deciding the rules in advance makes it easier to stick to them under pressure.
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