money

How you could build an emergency fund from scratch

4 min | 10 February 2025

Chanté Joseph
Chanté Joseph

Starting an emergency fund from scratch might feel overwhelming, but once you have one, the feeling of security is unmatched. This guide will help you create a savings plan to help reach your goal.

Do you feel confident you have enough money to see you through an emergency without feeling squeezed for cash? If not, you might need to build an emergency fund. If the idea of building from nothing fills you with dread, know you're not alone and that it's never too late to start.

Not everyone received a financial education growing up so don't be hard on yourself if you've yet to reach any money goals you have in mind. It's never too late to overhaul your finances and devise a new strategy.

Understanding and building an emergency fund

How much should I aim to save in my fund?

This will vary from person to person, but you should aim to save three to six months' worth of living expenses. If the emergency is losing a job, for example, you’ve bought yourself enough time to figure out your next moves without feeling pressured to make ends meet.

Where do I start?

You may have a budget already and are thinking, 'Where do I find this extra money?' Take time to analyse your finances and consider how to make minor cuts, such as cancelling unused subscriptions, cutting back on dining out (or ordering in), or postponing non-essential purchases.

How do I go about saving it?

You’ve got to start with a realistic commitment; if you know you can’t save £1,000 a month, don’t give yourself that target. As much as you want to save quickly, don’t put yourself in a position where you get comfortable dipping into your savings. When you save too much too fast, you might find it unsustainable and give up on adding to the fund because it feels too restrictive.

Think about automating your savings with a standing order on payday, so it happens without you having to think about it.

What if I have debt to clear first?

Don't let debt stop you from taking steps to save. Starting small is better than not starting at all. Maybe you aim for 2–5% of your weekly pay first and slowly build on that while paying off any debts, especially if the interest charged on those debts is greater than any interest you could earn. More than anything, the intent will keep you focused and help you achieve your goals.

Can this be fun?

Of course! Saving doesn’t have to feel like a punishment. Using apps or even making your own tracker sheets can help you visualise your goals and make the process more enjoyable. You can reward yourself at certain milestones and share your journey with friends and family. This helps to make saving a collective activity to motivate each other to save.

How do I manage bumps in the road?

Just because you have a plan doesn’t mean everything else will fall in line. Unfortunately, you may face situations that cause you to dip into your fund, but that's what it’s there for, so you should feel proud that you’re prepared. When you’re ready to start saving again, just follow these steps and keep going.

OK, I’ve taken all of these steps and have an emergency fund, now what?

Congratulations! Ensure you keep your emergency fund in a separate account, so you don’t mistakenly use it or feel tempted to spend it. Keep reviewing your monthly expenses and top it up when you can. If you’ve saved for three months, try six months next, and if you want to be extra cautious, try 12 – you can never be too prepared.

Looking for somewhere to keep your savings? Bank with Chase and you can open a saver account. Start saving with as little as you like, and we’ll calculate your interest daily and pay it monthly.

18+, UK residents. A Chase current account is required to open a saver account.


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