How Much Is In Your Emergency Fund?
April 11th, 2007
There’s a school of thought which suggests that you should have a minimum of 3-6 months worth of your salary saved up for emergencies, but how many of us can say that we have such savings to dip into in times of crisis?
Emergencies can, of course, come in many different guises - from your washing machine breaking down, to having to look after an elderly relative, and will require a varying amount of money.
Recent research from Birmingham Midshires suggests that over 90% of people would not have enough set aside to look after an elderly relative, with 80% saying they’d struggle if they lost their jobs. In both cases, it’s difficult to know just how much money you’d require to deal with the emergency, but giving yourself 3 to 6 months worth of salary would be a good start.
How much is in your emergency fund?
3 Comments on “How Much Is In Your Emergency Fund?”
Kirsten, April 12th, 2007 at 9:01 am
I’m working on my emergency fund at the moment, but probably won’t put much more money in it than 3 months’ worth of expenses… beyond that I think my money is better off earning more than 5 or 6% in interest…
everysec, April 12th, 2007 at 9:16 pm
I have just over 3 months salaray in my emergency fund - €7,000. Given the uncertainty facing people in the modern job market I think it’s a must-have to be able to cover 3-6 months worth of average expenses.
How Much Should You Have In Your Emergency Fund? / UK Personal finance blog and money information, tips and links / Money Watch, October 15th, 2007 at 10:01 pm
[...] in April I reported on a survey which suggested that 80% of us do not have enough to live on if we were to lose our [...]
