How to build an emergency fund (even if you feel like you can’t)
The amount you should save into an emergency fund depends on your circumstances so as a financial expert I have shared what I would recommend. Emergency funds help prevent debt. Payday loans and credit cards charge a lot of interest. By having an emergency fund you have money there you can dip into when things crop up in life that need money to get the problem sorted.
✅ 3 to 6 months’ worth of essential expenses
Write a list of what expenses are essential each month and multipy that by three. Here is a list of what you would include:
- Rent or mortgage
- Utilities
- Food
- Transport
- Insurance
- Debt repayments
For example: If your essential monthly expenses are £1,500, aim for £4,500 to £9,000 in your emergency fund.
Next consider your personal cicrumstances.
If you have a stable income, rent & no dependents then the goal would be 3 months of expenses.
If you are a homeowners, freelancers, or families then your goal would be 6+ months of expenses
More coverage is wise if you have variable income, children, or own property (where things like boiler breakdowns are on you).
How to Build an Emergency Fund
Let’s be honest the idea of saving for an emergency fund can feel impossible when moneys already tight. But having even a small buffer can reduce stress, prevent debt, and give you breathing room when life throws the unexpected your way.
Save what you can consistently and build it up over time. Even £10–£20/week adds up fast.
Emergency funds aren’t about wealth. They’re about peace of mind. Start where you are and grow it as your situation improves. Here are some tips to build that emergency fund step by step no matter your starting point:
1️⃣ Start small and I mean really small
You don’t need £1,000 overnight. Your first goal might be just £50, then £100. Tiny, consistent amounts matter. Think “progress, not perfection.” Try this:
- Round up your spending to the nearest £1 and save the difference.
- Save £1 a day. That’s £30/month before you even notice.
2️⃣ Name it & separate it
Create a dedicated savings account called Emergency Fund. This keeps it psychologically and practically separate from your everyday money.
📲 Most banks now let you set up a “savings pot” or sub-account in minutes.
Check out Money Supermarket for Saving Accounts and their rates here
3️⃣ Automate it
Even £5 a week on autopilot builds momentum. Treat it like a non-negotiable bill — “pay yourself first”, even if it’s tiny.
4️⃣ Save money where you can
Find small savings in your current budget -even freeing up £10/week gives you £520 in a year.
- Cancel subscriptions you rarely use.
- Do one no-spend weekend a month.
- Switch grocery brands or shop later in the day for yellow-sticker deals.
- Coffees and lunches all add up- think about cutting back
- Parking costs- park further away and save money and you get the exercise!
5️⃣ Save the windfalls
Any unexpected money a tax rebate, birthday cash, selling unused stuff can give your emergency fund a big boost.
🎁 Tip: Don’t think of it as “extra” money think of it as “future-you” money.
6️⃣ Define what counts as an emergency
Clarity helps you protect the fund.
✔️ Emergency = car repair, broken boiler or anything which is unexpected!
❌ Not an emergency = last-minute holiday or sale item
7️⃣ Celebrate milestones
Every £100 saved is a win. Share it, reward yourself (in a free way!), and build that sense of achievement.
🌱 Remember:
Building an emergency fund isn’t about having money to spare it’s about giving yourself stability and choice in the future.
You don’t have to do it all at once.
You just have to start.
Want more help on budgeting ideas?
Read more about Intentional Budgeting here
You can read more about the 50/30/20 Budgeting rule here
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