Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Emergency Fund: The Ultimate Guide to Financial Security

7 Jul 2025 · 1 min

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0:39

Ndubuisi 'Andy' Egwim explains how to calculate an emergency fund: three to six months of living expenses, not salary. If you spend £2,000 monthly, aim for £6,000 to £12,000. People without steady income or pensions should save 12 months instead.

Questions this video answers

Three to six months' worth of your living expenses.

On living expenses (not salary).

Salary £4,000 versus living expenses £2,000; emergency fund = £2,000×3–6.

Twelve months of living expenses (example given as £2,000×12).

Chapters

So emergency fund is like your cushion. What is the emergency fund? Three to six months worth of your living expenses. Three to six months. Now, people have asked me on the YouTube channel and in different platforms, are you saying three to six months of my salary? I'm like, no, not them. Your living expenses. Your salary is? 4,000, but your living expenses is 2,000. Your emergency fund is 2,000 times three or 2,000 times six. Or in my case, if you haven't got a job, you haven't got a pension, all that stuff. 2,000 times 12. Just what makes you comfortable, what you're happy with. But for most of you here who've got a regular salary, job, and you've got NHS pension and you've got all of that in place, three months might be okay.