How Big Is Your Emergency Fund?

How Big Is Your Emergency Fund?

The topic of emergency funds seems to be harmless enough. But there’s actually quite a bit of debate over them. Experts don’t always agree on how big an emergency fund should be, or even where that money should be parked. We want to know what your emergency fund looks like.

Picture: Jacob Edward

If you have an emergency fund, how much do you have saved, and how did you decide on this number? You don’t need to give an exact amount — it’s probably better to tell us how many months’ worth of living expenses you have saved. Some experts say it should be three, others say nine, and some even say one months’ worth will work.

We also want to know where you’re saving this money. Is it in a traditional, liquid savings account? Is part of it invested in the stock market?

So tell us: How big is your emergency fund, and why?


  • About 3 months, and sitting in cash offsetiting the mortgage interest. I also have a small amount of cash in the safe at home in the event of mass power outage etc and you can’t get money out of ATMs.

    I’m a bit of a doomsday prepper! 😀

    • ^same. About 3 months in a savings account offsetting the mortgage. Also have paid off about 6 months in advance on the mortgage so can drop payments for a few months if required. No cash at home though, it’s a bit scary how much I rely on the piece of plastic in my pocket.

    • Why hold Fiat money? Go get yourself some gold bars, son! When Doomsday comes, nobody will want your polymer notes.

  • We have a 12 month safety net, split between blue-chip shares, mid-risk Index funds and high-interest bank accounts.

    Took a lot of self-control to start, but now it’s just a normal part of life to save. Still get to go on nice holidays etc, so not crazy about it.

    Combine that with zero debts and it takes away almost all the work-related background stress. Things get bad at work? Hate our bosses? Want to start a business, work for ourselves? No problem, and no worries about ending up on the streets.

      • ING etc. You’re absolutely right though, it’s only ‘high’ interest in the context of everything else being worse.

  • What is an emergency fund anyway? Isn’t that just your savings? Sure you keep some sort of minimum level in your savings account “for emergencies” but why bother with a whole seperate account?

    I just have an offset home loan account. All my savings sit in there. That’s where I store money, have emergency funds and lower my home loan interest.
    I keep a grand or two in the “everyday account” for direct debits etc… but 90% of everything else just runs through credit cards.
    I could actually pretty easily get rid of my everyday account.

    I’d probably keep about a month’s pay in the savings account as a bare minimum, but other than that, credit cards give me a month’s grace for emergencies automatically and everything else is insured… I’m not too sure what other emergencies could come up?

  • $1200 paid extra into my mortgage account plus Credit card and family.
    It grows every pay packet, no number decided, just let it grow

  • A buffer of liquid funds is a priority for all those who have a budget and everyone should have a budget unless you live day to day.
    As spending changes from month to month you need to look at the approaching monthly spend.
    A three month buffer is ideal but do not let it drop below one month.
    Keep in mind that if you have shares it will take around 5 working days to access money from them. Selling assets in an emergency is never a good idea.

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