Building Your Emergency Fund

What Counts as Essential Expenses?

Only non-negotiable costs: rent/mortgage, utilities, food, transport to work, minimum debt payments, insurance. Do NOT include restaurants, subscriptions, entertainment, or savings. These can be cut in a genuine emergency.

Where to Keep It

An emergency fund should be: (1) instant access — no notice period, (2) separate from your current account — so you don't accidentally spend it, (3) earning interest — high-yield easy-access savings account. Premium Bonds are suitable for larger funds.

When 6 Months Isn't Enough

Self-employed, freelance, or commission-based workers should hold 9–12 months. Single-income households should hold 6+ months. People with health conditions or in specialist roles should also aim for the higher end.

Emergency Fund Calculator

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