How many months of essential spending should you keep in cash? Set your target, see your gap, and how fast you can close it.
Rule-of-thumb guidance, not personal advice. Keep emergency cash instantly accessible — an easy-access savings account or cash ISA, not investments.
Before investing or overpaying the mortgage, a cash buffer stops one bad month — job loss, a boiler, a car repair — turning into expensive debt. The right size depends on how replaceable your income is: a salaried couple with two incomes needs less than a self-employed sole earner. Self-employed workers should also hold their tax set-aside separately — that money is HMRC's, not an emergency fund; see our Tax Set-Aside Calculator.
The standard range is 3–6 months of essential outgoings — more like 9–12 months if you're self-employed, on commission, or the sole earner in your household.
Somewhere instantly accessible and protected: an easy-access savings account or cash ISA covered by the FSCS. Not stocks — a market dip and an emergency can arrive together.
High-interest debt (credit cards) usually comes first after a minimal buffer of around one month's essentials. Low-rate debt can generally wait until the full fund is in place.