An emergency fund exists to keep one bad month from becoming a debt spiral. It is held in cash, kept boring and accessible, and not invested.
Part 01
The lesson
A common general guideline is several months of essential expenses, built gradually. Even a small buffer changes how you handle a broken car or a lost contract.
Reflection
Questions to sit with
- 01Do you know exactly what you spent last month, or are you estimating?
- 02If your income stopped today, how long could your household continue?
- 03What are you actually building toward financially, and by when?
Put it into practice
Action points
- 01Track every expense for 30 days and categorise them at the end. Do not change your spending in week one — just observe.
- 02List every debt with its interest rate on a single page and choose a repayment order.