Sample article for this concept. General information, not financial advice.
Why bother
An emergency fund is money you keep for the things you can't plan: a broken phone, a vet bill, a month between jobs. Without one, a surprise often lands on a credit card.
Pick your number
A common starting goal is one month of essential costs: rent, bills, food and transport. Add them up and that is your first target. Later, you can aim for three months.
Start with one month. It's a goal you can see the end of.
Make it automatic
Divide your number by six. That is your monthly amount. Set it to move into a pot the day after payday, so you never see it in your spending money.
- Turn on round-ups for a little extra each week.
- Move any windfalls, like a tax refund, straight in.
- Check in once a month, not every day.
Keep it safe, and separate
Keep the fund in its own pot, away from everyday spending, where it still earns interest. Name it something that reminds you what it's for.