How much should be my Emergency fund?

crafty*kate

What an interesting thread...I do agree that there's a difference between an emergency fund, and proper budgeting for car maintenance etc.

I am also young, single & childless, and renting (although I do have a pet). BUT - 18 months ago I was diagnosed with cancer, and it's been a massive financial blow (apart from everything else, of course). I got full pay for 3 months, half pay for 3 months, and then onto benefits, and they just do not cover everything. ESA is something like £65 a week? And Housing Benefit is only the local housing allowance, so it doesn't cover my whole rent because I'm not living in a one-bedroom flat. It has been really, really hard. I'm back at work now, but I need more surgery so I'll be going off again...I have about one month's salary put by, but it's not been easy to save that and I don't think it will cover everything while I am off.

In an ideal world, I'd like to aim for about 3 month's salary - but remember that anything over £6000 is counted if you ever need to apply for benefits.