Budgeting - Emergency Fund(s)

What are folks thoughts on these?
Should you have multiple i.e. one to cover a certain amount of expenses and one to cover unexpected spends?

Or should savings be general and not given a "job".

Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.


  • I use one pot 3 ways as such.
    I have one emergency fund, Easy access at 5.2%, this is used to fund 5 regular savers at 8%, 7.5%, 7%, 7% & 6%.
    As these can be closed within 5 days with little penalty it’s a no brainier.
    I also have 2 isa’s with low penalty withdrawals.
    It’s about a years finances in total.

  • For me it depends on what you are classing as an emergency fund and do you have “true expenses covered”
    for example if your boiler goes does that come out of your emergency, or have you started to think of that as a true expense.

    I think things like boiler / car replacement are not funded from emergency but true expenses as they are known and will happen, what you don’t know is when so the emergency fund might come into play as you build those pots but ultimately they should be fully funded.

    An emergency fund for me is more one off and unexpected like a job loss etc and that is then just one general pot.
    MFW 2024 #35 - 1300 / 9000

    Completed Challenges
    Pay off all debts by 2023 - #18 8000 / 8000

  • Rob5342
    Rob5342 Posts: 1,358
    First Post First Anniversary Name Dropper
    There's more than one way to skin a cat as they say, the important thing is that you plan for all expenses and have enough to cover expenses as they crop up with a reasonable amount spare to cover anything unexpected.. Our finances are quite simple so we have some inheritance put aside in one savings account for a new car when necessary, and a second account that's for a few different things we are planning for including an emergency fund. We change it around sometimes and use the money for things we weren't planning for but always keep a certain amount reserved as spare.
  • theoretica
    theoretica Posts: 12,229
    First Post Name Dropper Photogenic First Anniversary
    I found it useful to think about several different categories:
    I know it will happen but not when: things that won't last forever, like fridge, boiler, car, kitchen, roof.  Some people call this emergency - I think of it more long term budgeting
    May or may not happen by surprise: sickness, redundancy, fire, flood, babies...
    Long term spend-as-I wish savings, whether this is a new house, retiring early, taking a career break for a while...

    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • IMO, "Emergency funds" are just another name for "having savings which attract highest % rate whilst being able to access easily"    (depending on what you decide is enough "emergency funding " for your own circumstances).
  • Volcane
    Volcane Posts: 303
    Name Dropper First Post First Anniversary Combo Breaker
    For things like boiler breakdowns, car repairs and the like my credit cards are those emergency funds.

    My savings across various accounts are my emergency funds for any unexpected loss of income.
    Best Regards,

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