Emergency fund
Set a cash buffer target from your monthly essentials and see how long it'll take to build at your saving rate.
The target is your essential outgoings — rent or mortgage, bills, food, transport, minimum debt payments — multiplied by the months of cover you want.
The target is your essential outgoings — rent or mortgage, bills, food, transport, minimum debt payments — multiplied by the months of cover you want. Three to six months is a common range; the right number depends on how secure your income is and how many people depend on it.
The buffer exists so that a surprise becomes an inconvenience rather than a debt. It should be boring, instant-access cash, not invested.
Formula
target = essentials × months; time = (target − saved) ÷ monthly saving
Ignores interest on the savings — over a year or two it barely moves the answer.
- 01No interest earned on savings.
- 02Saving rate constant; no windfalls or setbacks.
- 03Essentials only — discretionary spending is what you would cut in an emergency.
Holding everything else at your inputs
Each row changes one variable and shows the result. It illustrates which assumptions the answer is most sensitive to — it does not suggest which to choose.
| Variable | Changed to | Months to target | vs your result |
|---|
Reminder: general education only, not a personal recommendation. Where to hold cash savings — and whether FSCS deposit protection covers your provider — is worth checking on any account you open. For personal advice, see an FCA-authorised adviser via our toolkit.