✅ Step 1: Set Your Target

• Standard guidance: 3 to 6 months of essential outgoings.

• UK-based workers with a stable job: aim for 3 months minimum.

• Freelancers, zero-hour contracts, or families: aim for 6+ months.

💡 Tip: If that sounds intimidating, start with a first goal of £500–£1,000 for small emergencies.

✅ Step 2: Work Out Your Essentials

Make a list of core monthly expenses, such as:

• Rent or mortgage

• Council tax

• Utilities (gas, electric, water)

• Food & toiletries

• Insurance (car, home, health)

• Childcare or transport costs

• Loan or minimum debt payments

💡 Tip: Use Monzo, Starling, Emma, or Moneyhub to break down your spending.

✅ Step 3: Open a Separate Savings Account

• Use a separate easy-access savings account, ideally with high interest (easy access ISAs or HY savings).

• Skip accounts with withdrawal penalties — emergencies need instant access.

• Online banks or digital challengers (Monzo, Starling, Chase UK) offer great options.

💡 Tip: Look for interest rates of 4%+ AER (check current deals via MoneySavingExpert or MoneySuperMarket).

✅ Step 4: Automate Your Savings

• Set up a standing order or scheduled transfer from your main account on payday.

• Start with what you can: £25–£100 per month adds up quickly.

💡 Tip: If paid monthly, align your savings with your salary date so you "pay yourself first."

✅ Step 5: Use Windfalls or Bonuses

• Put in part (or all) of:

  • Work bonuses

  • Birthday or Christmas money

  • Tax refunds (e.g. from overpaid PAYE or student loans)

  • Side hustle or overtime income

💡 Tip: Save at least 50% of any “unexpected” money to supercharge your fund.

✅ Step 6: Cut Back Without Pain

• Cut down or switch:

  • Subscriptions (streaming, apps, gym)

  • Utility providers (use Compare the Market or Look After My Bills)

  • Food shopping (use apps like Too Good To Go or Olio)

💡 Tip: Do a “no-spend weekend” and transfer what you didn’t spend into your fund.

✅ Step 7: Track Your Progress

• Create milestones: e.g. £500 → £1,000 → £3,000.

• Use tools:

  • Budget apps (MoneyDashboard, Emma)

  • Spreadsheets

  • Savings pots/goals in your banking app (Monzo and Starling do this well)

💡 Tip: Label the account "Emergency Fund Only" to resist dipping into it.

✅ Step 8: Use Only for Real Emergencies

Legit UK emergency examples:

• Redundancy

• Boiler breakdown

• Car MOT failure

• Emergency dental/medical costs

• Emergency travel to care for family

Not emergencies:

• Holidays, concert tickets, gifts, upgrades.
  

💡 Tip: Ask yourself: Is this urgent, unexpected, and essential?

Summary

1. Set your initial target £500–£1,000

2. Know your essentials- Use apps like Emma or Starling

3. Open separate account - Easy access, 4%+ AER

4. Automate saving - Set up a Standing order on payday

5. Use windfalls - Save 50%+ of bonuses/refunds

6. Trim expenses - Switch providers, cut subscriptions

7. Track it - Use pots/goals in apps

8. Use it wisely - Only true emergencies