Emergency fund: how much should you save?
An emergency fund absorbs unexpected costs without disrupting your long-term goals.
Calculate from essential expenses
Add housing, food, transport, insurance, energy and mandatory repayments. This monthly total is a more reliable reference than an abstract percentage of salary.
The more variable your income, the more your household depends on one income source, or the harder your expenses are to reduce, the larger the reserve may need to be.
Choose a progressive target
You can begin with a first milestone equal to one month of essential expenses, then gradually work towards several months. The important point is to keep this reserve separate from daily spending.
Prioritise access and stability
An emergency fund should remain quickly accessible. Its primary goal is not maximum return, but reducing the risk of selling an investment at the wrong time.
Frequently asked questions
How many months of expenses should you keep?
There is no universal amount. Income stability, dependants and the flexibility of your expenses determine the suitable level.
Should an emergency fund be invested?
Accessibility and stability come first. A risky asset can lose value precisely when you need the money.