Estimates from the figures entered, not advice. Made at aurumwealth.co.uk.
This is not financial advice. The results are estimates worked out from the figures you enter. They do not take account of your circumstances, interest on your savings, or changes in your spending.
How much cover is right depends on your job, your household and your other support. Speak to a regulated adviser if you are unsure.
What counts as essential spending
Include the bills you would still have to pay if your income stopped: housing, utilities, food, transport to get to work or appointments, insurance, council tax, childcare and minimum debt payments. Leave out holidays, eating out, subscriptions you could cancel and other spending you could pause.
How much cover to aim for
- Three months is often used as a starting point, particularly with steady work and no dependants.
- Six months or more is often chosen with variable income, self-employment or people depending on you.
- Where to keep it. Emergency money is usually kept somewhere you can reach it quickly, rather than somewhere its value can fall.