Money · Practical guide
Emergency savings: work out how much you need.
Last verified: 1 November 2026· Based on MoneyHelper, GOV.UK and the FSCS· Next review 1 February 2027
The problem
A broken phone, a late wage payment or a sudden bill can push you into expensive borrowing. An emergency fund is money set aside only for surprises — this page helps you work out a realistic target and how to reach it.
Applies to: UK-wide
Takes about 2 minutes. Nothing you type is saved or sent anywhere.
What you need to know
- Your target is simple: your essential monthly costs × the number of months you want to cover.
- Essential costs are the things you must pay to keep a roof over your head and keep working: rent, council tax, energy, water, food, travel to work, phone, minimum debt payments and childcare.
- MoneyHelper (the government-backed money guidance service) suggests, as a rule of thumb, enough to cover essential outgoings for three months. It is a starting point, not a rule.
- The right number of months depends on you: how stable your income is, whether you have dependants, your visa or job situation, and whether anyone could support you.
- Start with any amount. MoneyHelper says saving small, regular amounts is often more effective than saving larger amounts now and again.
- Keep the money where you can reach it quickly, but separate from your everyday account so it does not get spent.
Emergency savings calculator
Enter what you pay each month for essentials. Leave anything that does not apply blank. Nothing is saved or sent.
Your target
£0
£0 a month × 3 months
Choosing your number of months
- Steady salary, no dependants, someone who could help in a crisis: fewer months may be enough to start.
- Irregular income (shifts, zero-hours, self-employed), dependants, or a job tied to your visa: consider more months.
- Three months of essentials is a common rule of thumb (MoneyHelper). Your own target depends on your income stability and circumstances.
This is a planning tool, not financial advice.
Step by step
- 1
List your essential monthly costs
Use last month's bank statement. Include only the costs you would still have to pay in a bad month. Leave out takeaways, subscriptions you could cancel and shopping you could pause.
- 2
Choose how many months to cover
Use the guidance below the calculator. If your income is irregular or you support others, aim for more months. If that feels impossible, set a first goal of one month — or even £100 — and build from there.
- 3
Set up a separate easy-access savings account
Look for an account you can withdraw from without long notice periods. Check it is with a firm protected by the Financial Services Compensation Scheme (FSCS).
- 4
Automate a regular amount
Set up a standing order for the day after payday, so the money moves before you can spend it. Even a small fixed amount builds the habit.
- 5
Decide in advance what counts as an emergency
For example: urgent repairs, travel for a family emergency, essential costs while waiting for pay or benefits. Writing it down makes it easier not to dip in for other things.
- 6
Top it back up after you use it
Using your fund is what it is for. Restart your standing order straight away to rebuild it.
If you are on a low income: Help to Save
Help to Save is a government-backed savings account. According to GOV.UK:
- You can open one if you receive Universal Credit and you (with your partner if it is a joint claim) had take-home pay of £1 or more in your last monthly assessment period.
- You can save between £1 and £50 each calendar month.
- You get a bonus of 50p for every £1 you save, paid at the end of the second and fourth years.
- The account closes 4 years after you open it, and you cannot open another one.
- Check the full rules on GOV.UK before applying — your situation may differ.
Rules can change and depend on your situation. Confirm on the official page before acting.
Common mistakes and warnings
Waiting until you can save a 'proper' amount
Small regular amounts build the habit and still help. A first goal of one month of costs is far better than nothing.
Keeping your emergency money in your current account
It quietly gets spent. A separate account makes the fund visible and harder to dip into.
Locking it in a fixed-term account
Fixed terms can pay more interest but may charge penalties or not allow withdrawals. Emergency money needs to be reachable.
Saving while paying high interest on debt
MoneyHelper notes you are unlikely to earn more interest on savings than you pay on borrowing. Many people keep a small buffer and focus extra money on expensive debts first.
Sending money to 'investment' offers promising quick returns
Genuine savings accounts do not promise guaranteed high returns. If you are pressured to move money quickly, stop and check — it may be a scam.
Frequently asked questions
How many months should I aim for?
There is no single right answer. Three months of essential costs is a common rule of thumb. People with irregular income, dependants, or a less secure job often aim higher. If three months feels out of reach, start with one.
Is my money safe in a UK bank?
The FSCS protects eligible deposits up to £120,000 per person per firm. Some banking brands share one licence, so check on the FSCS website if you hold money with more than one brand.
Should I save or pay off debt first?
It depends on the interest rates and your situation. Many people keep a small emergency buffer to avoid new borrowing, then put extra money towards the most expensive debt. Free, impartial help is available from MoneyHelper.
Will savings affect my benefits?
Savings can affect means-tested benefits such as Universal Credit. Check the rules for your benefit on GOV.UK before saving large amounts.
Is the calculator storing my numbers?
No. Everything is worked out on your own device and disappears when you leave the page.
Official resources
Verified official services. Each opens in a new tab — you choose when to go.
Next step
Ready to act on this?
Takes about 2 minutes. Nothing you type is saved or sent anywhere.
Related guidance
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Sources and last verified
Last verified 1 November 2026; next review 1 February 2027. This guide summarises:
- MoneyHelper — Emergency savings: how much is enough?
- MoneyHelper — Eight ways to start saving successfully
- GOV.UK — Help to Save
- GOV.UK — Help to Save eligibility
- FSCS — Check your money is protected
MyAgumba explains official guidance in plain English. It is not legal, immigration, tax or financial advice, and MyAgumba is not part of, or endorsed by, the government. Always confirm the detail on the official page before acting.