An emergency fund is money set aside for unexpected costs such as a broken boiler or a gap between jobs. It keeps a surprise from turning into debt.
How much is enough
A common approach is to cover several months of essential costs: rent, utilities, food, insurance and transport. People with irregular income usually aim higher.
Where to keep it
Use an account you can access quickly that does not fluctuate in value, separate from everyday spending so it is not used by accident.
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