A practical UK guide to working out your own number and building it up steadily.

An emergency fund is simply money you can reach quickly if life throws you a nasty surprise. Think boiler breakdown, car repair, or a sudden drop in income. The right amount is not one magic figure. It depends on your essential monthly costs and how stable your income is.

A simple rule of thumb that works for most people

A widely used guide is to keep three to six months of essential outgoings in easy access savings. MoneyHelper uses this three to six months approach, based on the costs you cannot avoid such as housing, food and heating. The Financial Conduct Authority also refers to three to six months of outgoings as a common benchmark before investing.

If your work is less secure, you are self employed, or your household relies on one income, leaning closer to six months can give more breathing space.

How to work out your personal target

1. Add up your essential monthly outgoings
   Housing, council tax, utilities, food, travel, insurance, minimum debt payments
2. Multiply that figure by 3, then by 6
   That gives you a sensible range
3. Choose a target that matches your situation
   More stability usually means you can aim lower in the range

Clockwise Credit Union suggests starting with one to three months if you are tackling debts, then building up towards three to six months when you can.

How to build it without feeling the squeeze

A Clockwise Credit Union article recommends trying to save around 10 percent of what you earn, adjusting if that feels too tight. If it helps, you can split savings into two pots
A short term pot for emergencies you might need this year
A longer term pot once your basic emergency fund is in place

The key is consistency. Even small, regular amounts add up and reduce the chance you will need to borrow when something breaks.

Where to keep your emergency fund

Prioritise instant access so you can use it quickly, without penalties. Clockwise suggests keeping emergency money in a current account or instant access savings account for this reason.

Financial disclaimer
This article is for general information only and is not personal financial advice. Tax rules and financial products can change, and what is right for you depends on your circumstances. If you are unsure, consider speaking to a regulated financial adviser or using free guidance services.