Practical guide

A simple way to plan an emergency fund

Choose a target you understand, and work out a realistic gap without relying on forecasts.

Start with essential spending

Review costs that must still be paid if your circumstances change, such as housing, utilities, food and necessary transport. Avoid assuming every household has the same essential spending.

Choose your own buffer

Multiplying essential monthly costs by your chosen number of months provides a starting target. The appropriate buffer depends on your situation; the calculator does not provide personal financial advice.

Work out the remaining gap

Subtract what you have already set aside. You can then use the savings goal timeline to explore how regular deposits might close the gap.

Keep the plan practical

Do not overlook high-priority arrears or immediate bills. Free impartial UK money guidance is available from MoneyHelper.

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Illustrative examples only. Use your own tariffs, measurements and circumstances when making decisions.