Tool
Emergency fund
How many months of cash you need, from how replaceable your income really is.
Rent or mortgage, bills, food, transport. Not holidays.
How secure is the income?
Stable, but a search would take months.
Your target
£8,000 · 4 months
You have 2.5 months' worth. £3,000 to go.
Keep it in cash, in an instant-access account, and accept that inflation nibbles at it. The whole job of this money is to be there on the day something goes wrong - an emergency fund invested in the market has a habit of being down 20% exactly when you need it, because the same recession that costs you the job costs the market its value.
How this is worked out
- Three months as the floor, for anyone.
- Average job security: +1 month.
An illustration from the figures above, not a forecast. Facts, not financial advice.
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