Emergency savings

$17mma

Hello all :hello:

I am thinking ahead and was wondering how much would any of you super savers advise would be a good amount for an emergency savings pot?

All feedback appreciated.

codetown

Depends very much on circumstances.

Some questions to reflect on:
- Do you live alone or does anyone rely on you?
- Do you have a job? How secure and stable is the income?
- Do you have other income (rents, other activities)?
- Do you have a morgage? Do you have a backup for living (parents, friends) in case things get bad?
- Do you have any history of ilnesses in your family?

If you are settled, in good health, alone, owning your house and with a stable secure job, you might even leave only 1000 pounds for emergencies (minimum to survive a couple of months if every other form of income disappears).
But it is likely you will need more to cover at least one of the categories I mentioned above.

$17mma

I also heard that you should save roughly three times your monthly expenses just incase you are made redundant/ loose job then you are able to continue for a while without an income

Not sure if it was three times or five times.

cheerfulcat

Between six and twelve months' worth of expenses is a good rule of thumb - it depends on how cautious you are. I lean toward the twelve months' worth, personally, as it gives you a little extra leeway.