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?