Ndubuisi 'Andy' Egwim argues UK doctors need three to six months of living expenses saved before investing. Without an emergency fund, unexpected costs like a broken boiler or car repair combined with a market downturn could force you to sell investments at a loss, locking in losses and derailing long-term growth.
Number 3, if I were starting again and there was a market crash, or even if there wasn't a market crash, I will keep a proper emergency fund even before I invest a penny. 3 to 6 months' worth of your living expenses saved, because needing cash during a crash is dangerous. If your boiler breaks down, your car fails, your income drops, or someone, a loved one, needs, you know, help, or life hits you at the same time the market is down, you may be forced to sell your investment at a loss. It's hard to recover. That locks in the loss. It's hard to recover from that, and it removes your ability to benefit from the Recovery and compounding.
