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An emergency fund is cash set aside for the things you cannot plan for: losing your job, a broken boiler, a big car repair. Having it means a bad month does not go on a credit card. Here is how big it should be and how long it takes to build.
MoneyHelper suggests keeping three to six months of essential outgoings in an emergency fund, in an instant access savings account so you can reach it straight away.
Count only the essentials
The target is based on what you must pay each month, not your full spending. That means rent or mortgage, energy, water, council tax, food, travel to work, insurance and minimum debt repayments. Holidays, eating out and subscriptions you could cancel are left out, because you would cut those first.
How big your fund should be
| Essential outgoings a month | 3 months | 6 months |
|---|---|---|
| £1,200 | £3,600 | £7,200 |
| £1,800 | £5,400 | £10,800 |
| £2,500 | £7,500 | £15,000 |
Three months or six?
Three months is a common starting point. Aim nearer six, or more, if:
- you are self-employed or your income goes up and down
- yours is the only income in the household
- your job is less secure, or it would take a while to find another
- you have children or others who rely on you
If you have income protection insurance or a generous sick pay scheme at work, that covers part of the risk, so a smaller fund may do.
How long it takes to build
With £1,800 a month of essentials, a three-month fund is £5,400. Starting from £2,000 and saving £250 a month at an example rate of 4%, it takes 1 year 1 month to get there. For six months, £10,800, it takes 2 years 9 months.
If that feels a long way off, start with a smaller first goal, such as one month of essentials, then keep going. Many people build a small buffer first, then clear expensive debt, then build the full fund.
Where to keep it
Somewhere you can reach quickly without losing interest: an easy access or instant access savings account. Keep it separate from your current account, so it does not get spent by accident, and separate from money saved for a holiday or a deposit. It should not be invested, because its value could fall just when you need it.
Work out your own fund
The emergency fund calculator works out your target from your essential outgoings and how long it will take at the amount you can save. For other goals, try the savings goal calculator.
Sources: MoneyHelper, Emergency savings: how much is enough?. The interest rate in the example is an example figure. Checked 1 November 2026.
This is general information, not financial or tax advice.
It explains published rules and figures. Your own position depends on your full circumstances,
so speak to a qualified adviser before acting on it.