Can your investment ISA also be your emergency fund?

boingy

In the same way that it's really easy to be over-insured it's also really easy to be over-cautious with emergency funds. You need a month or so of money available at a few days notice. Anything bigger and it's fine if you can get to some money within a couple of weeks. 

Having most of your emergency funds in an S&S ISA is fine as long as you accept the risk of having to sell when markets are down.

Eyeful

We are shaped by our experiences in life. Not having a job for over 6 months, at a time when the markets where not doing, well does tend to make you believe that an emergency fund of 6 months rather 1 months cash, in a savings account  is a good idea and not just a theoretical.one.

boingy

Eyeful said:

We are shaped by our experiences in life. Not having a job for over 6 months, at a time when the markets where not doing, well does tend to make you believe that an emergency fund of 6 months rather 1 months cash, in a savings account  is a good idea and not just a theoretical.one.

Well, yes and no really. We're all different but if you hold too much in cash in fear of the worst for too long then it's likely to be worth less than the same amount invested in something that goes up and down even at the down-est. Yep, I'm making words up but the worst usually does not happen.