How much emergency cash fund to keep?

FirstTimeSolo

Thanks @MaxiRobriguez I have just checked and I am indeed covered by the Long term sick and disability benefit scheme provided by my company. I am in my early 30s with no health conditions so on the lower end of long term sickness risk (annual full health check done). Of course, risk of injury is the same as for most office workers. 

AlanP_2

Of course, risk of injury is the same as for most office workers. 

Those paper cuts can be really bad 

This is the proverbial piece of string question. My wife works in HR and has had people of on long term illness with cancer and the like for 12 months plus. It was public sector and they got 6 months full pay followed by 6 months half-pay so a reasonable cushion. If you were the only / main earner and had dependents and a mortgage that cushion would be feeling a bit thin by the time you were on half-pay (and who needs those additional concerns when you are seriously ill).

Personally we have always been happy to sacrifice some potential gains for peace of mind so had about 9 months of "spend" when there were 3 kids at home. Have lowered it now to around 5 months as could access pensions / sell large family home if the absolute worst was to happen, and we realise even that is too much cash in reality. 

FirstTimeSolo

I think £20k is more than sufficient for me based on what people have suggested here. Should the ‘worst’ happen, I can cash my investments. £20k would cover 6-8 months for me. If I lose my job I would also move into a cheaper flat so that would reduce monthly expenses. 

MX5huggy

 Of course, risk of injury is the same as for most office workers. 

But at weekends you like taking part in motorcycle racing when you’re not BASE jumping and wing suit flying? 

I don’t think of the emergency fund in terms of not being able to work, but in terms of large unexpected expenditure, new car, boiler, tooth reconstruction, private medical treatment etc. There’s credit cards in the first instance then the emergency fund to tied me over to cashing in assets.