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?
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…
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.
I am sure, emergency fund is a must have.It’s a thing that will help me to save money and when I have an emergency – I do not have a need to borrow cuz I know that I have money for a rainy day.How much you can put to your emergency fund depends on your wish and earnings, I try to put $ 100 every month, but any amount of money is better than nothing.Emergency fund protects me from unexpected financial problems and I feel more confident about my financial situation.