How to build an emergency fund
Building an emergency fund can help prevent you from needing to borrow money. Saving for unexpected expenses gives you peace of mind and keeps you in control of your finances.
In this guide we will cover:
Emergency fund calculator
Find out how quickly you could build up your emergency fund.
You can use our emergency fund calculator to work out how much you may want to save. You can input your essential spending for the month. The calculator will work out how much you need to save and how long it would take you to reach this goal.
Decide how much you need
How much you need, and what an ‘emergency’ is, will depend on your situation.
As a general guide, it’s recommended you have at least 3 months’ worth of living expenses in an emergency fund. If your total monthly outgoings – including rent or mortgage payments – are £2,000, you should aim to set aside £6,000. However, the more you can save, the better.
A larger fund can help you handle a bigger financial shock. To be extra safe, you may want to aim for 6 months’ worth of living expenses. If your monthly outgoings are £2,000, for example, you’d ideally have £12,000 in your emergency fund.
It may take you a while to save up, but even a small emergency fund is better than nothing, so don’t be discouraged.
Start by looking back at your expenses over the last 3 months to see how much you spend. Then use a budget to work out how much you could save each month.
You could use our budget planning tool to help.
Start saving
Based on the amount you’ve decided to save, how long will it take to reach your emergency fund goal?
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Set a target date to reach your goal so you can celebrate your progress along the way. Use our savings goal calculator to help see how long it would take to reach your target.
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Open a separate savings account so you aren’t tempted to spend the money. Make sure it’s an account you can access quickly.
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Set up a standing order to move money into a savings account each month. If you schedule it for the day you get paid, you’ll lower the temptation to spend it.
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If you have money left over at the end of a month, why not add it to your savings?
Explore: How to save money
Make a clear plan
It’s helpful to define exactly what an emergency is before you start saving. This stops you from spending the money on something you might regret later.
A genuine emergency might include:
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Sudden job loss or drop in your income
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Vet bills if you have a pet
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Urgent car or home repairs
Keep it topped up
If you do have to dip into your emergency fund, plan how to top it up again. It’s important not to let your safety net shrink over time.
You should also review your emergency fund on a regular basis. Your expenses can change, so what was 3 months’ worth of expenses a year ago may no longer be enough.
This article was last updated: 26/06/2026, 05:13
