Build your safety net
Knowing my target and my date changed everything. I stopped thinking “I should save more” and started thinking “eleven months to go”.
You now know why saving matters, how big your emergency fund should be, where to keep it, how inflation affects it, and how to save for goals. Time to make your plan.
Your safety net in four steps
- Work out your essential costs. Use the needs number from your Level 2 budget.
- Pick a target. Start with one month if you’re starting from zero, then work towards three to six.
- Open a separate easy-access account with deposit protection, and give it a clear name.
- Automate a monthly transfer on payday.
Plan it
Plan your emergency fund
Nothing you type here is saved or sent anywhere.
Your target
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Time to get there
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Fill in your essential costs to see your target.
Stay on track
- Raise your transfer when your income goes up. Before you get used to spending the extra.
- Put windfalls to work. A bonus, a gift or a tax refund can jump you months ahead.
- If you use it, refill it. That’s not failure; that’s the fund doing its job. Make refilling it your next goal.
- Review it once a year. If your rent or bills go up, your target goes up too.
The first time my emergency fund saved me from borrowing, I didn’t feel lucky. I felt prepared. That’s a much better feeling.
