Building an emergency fund

Building an emergency fund – step by step:

How much do you need?

• Single: 3 months' net salary (e.g. 3 × €2,200 = €6,600)
• Family: 6 months' net salary (e.g. 6 × €3,500 = €21,000)
• Self-employed: 6–9 months (irregular income!)

"But I can't save anything!"

• Start with €50/month. That's less than €2/day
• At €50/month: an emergency fund of €6,600 in 11 years
• At €200/month: in 2.75 years
• At €500/month: in 13 months

Where to keep it?

• A separate instant-access savings account (NOT in your current account – too easy to spend!)
• Good instant-access interest rates: 2–3% (2026)
• Available immediately, no risk

When is the emergency fund "done"?

• When you've reached 3–6 months' salary
• Then: redirect the standing order to an ETF savings plan
• Secure first, then invest!

When are you allowed to touch it?

• Real emergencies: job loss, car repair, broken washing machine, illness
• NOT: holidays, a new phone, bargains ("But it was on offer!")
• If you use it: top it up again as quickly as possible