Choose a target you can explain
Add the costs you must keep paying during an income interruption: housing, food, utilities, transport, insurance, minimum debt payments, medicines and essential care. Multiply that monthly figure by a range that reflects your risk.
- A smaller starting buffer can cover a repair, excess or urgent journey.
- A longer buffer may be prudent with variable income, one household earner, dependants, health costs or slow re-employment prospects.
- Stable dual income and strong income protection may reduce:but do not remove:the need for accessible cash.
The CCPC recommends budgeting from actual income and spending and keeping savings goals within the wider household plan. Use the CCPC budgeting guidance.
Balance savings with expensive debt
Do not empty your account to clear debt and leave no way to meet the next emergency. Equally, carrying costly revolving debt while building a very large cash balance can be expensive. Keep a minimum buffer, make required payments, and compare the guaranteed interest saved by reducing debt.
If bills or arrears are already unmanageable, MABS provides free, independent money and debt advice. Contact MABS.
Keep emergency money accessible
The fund’s job is resilience, not maximum return. Check notice periods, withdrawal penalties, account access and deposit protection. Separate it from everyday spending, automate a manageable transfer and replenish it after use.
Turn the target into a plan
Enter the target, existing balance and contribution without sending your inputs to a server.
Sources
- CCPC: Budgeting : accessed 11 July 2026.
- Money Advice and Budgeting Service : accessed 11 July 2026.
- Deposit Guarantee Scheme: What we cover : accessed 11 July 2026.