How big should your emergency fund be, and how long will it take you to build it?
An emergency fund covers your essential expenses if your income stops or a big unexpected bill arrives. The usual guideline is three to six months of essentials: housing, utilities, food, transport, insurance and minimum debt payments. Leave out spending you could cut in an emergency.
Somewhere safe and available within days, separate from your everyday account. It is not an investment: its job is to be there when you need it.
Three months can be enough with a stable job and two incomes in the household. Six or more makes sense if you are self-employed, have one income or have dependants.
Many people build a small fund first (one month), then pay off expensive debt, then complete the fund.
Losing income, urgent repairs, medical or legal costs. Holidays and sales are not emergencies.
Indicative results. This is not financial advice.
Know how much you will have left at the end of the month
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