Financial wisdom says keep 3-6 months expenses accessible. Here's how to calculate yours and where to keep it.
The Rule: 3-6 Months of Expenses
| Your Situation | Recommended |
|---|---|
| Stable job, no dependents | 3 months |
| Stable job, dependents | 4-6 months |
| Variable income/freelance | 6-12 months |
| Single income household | 6 months |
Calculate Your Emergency Fund
Step 1: Monthly Essential Expenses
| Category | Your Amount |
|---|---|
| Rent/Mortgage | € |
| Utilities | € |
| Groceries | € |
| Transport | € |
| Insurance | € |
| Debt payments | € |
| Total | € |
Step 2: Multiply
- 3 months: Total × 3
- 6 months: Total × 6
Example
Monthly essentials: €2,500
- 3 months: €7,500
- 6 months: €15,000
Where to Keep Emergency Fund
Your emergency fund needs:
- Instant access (no notice periods)
- Safe (deposit guaranteed)
- Decent return (inflation protection)
Best Options
| Account | Rate | Access | Safety |
|---|---|---|---|
| Bunq | 2.01% | Instant | €100k guaranteed |
| Trade Republic | 2.00% | Instant | €100k guaranteed |
| Revolut | 1.50% | Instant | €100k guaranteed |
| AIB | 0.25% | Instant | €100k guaranteed |
Don't keep emergency funds in fixed-term accounts.
Emergency Fund vs Other Savings
| Purpose | Where to Keep It | What Matters Most |
|---|---|---|
| Emergency fund | Bunq/instant access | Quick access |
| House deposit | Bunq or short-term fixed | Balance of access and rate |
| Long-term (5+ yrs) | State Savings | Best rate |
| Monthly savings | Regular saver (3%) | Best rate |
Common Mistakes
1. Keeping It in Current Account
Current accounts earn 0%. Move to Bunq and earn 2% while keeping instant access.
2. Locking It Away
Fixed-term accounts defeat the purpose. You can't access money in emergencies.
3. Too Little
One month's expenses isn't enough. Job loss can take 3+ months to resolve.
4. Too Much
Beyond 6-12 months, consider investing the excess for better long-term returns.
Building Your Emergency Fund
Starting from Zero
- Open Bunq savings account
- Set up automatic transfer on payday
- Start with €100-500/month
- Increase as able
- Don't touch until real emergency
What Counts as Emergency?
✅ Job loss ✅ Medical emergency ✅ Essential home repair ✅ Car repair (if needed for work)
❌ Holiday ❌ New phone ❌ Sale items ❌ Non-essential purchases
Quick Reference
| Monthly Expenses | 3 Months | 6 Months |
|---|---|---|
| €2,000 | €6,000 | €12,000 |
| €2,500 | €7,500 | €15,000 |
| €3,000 | €9,000 | €18,000 |
| €3,500 | €10,500 | €21,000 |
| €4,000 | €12,000 | €24,000 |
Last updated: January 2026