What is an emergency fund and why is it important?

How to build an emergency fund

Whether you rent, own your home, have a family or live alone, an emergency fund is essential for everyone. This funding is different from your bank account and any other savings you may have. Put simply, an emergency fund is for when life throws you a curveball, leaving you with unexpected expenses that your usual income simply cannot cover.

Need help getting started? Here we’ve pulled together everything you need to know about building an emergency fund - what it is, where to keep it and how much you need.

Woman with hands on her head and a worried expression.

What is an emergency fund?

An emergency fund is money set aside specifically for emergency expenses. These are usually unplanned (and unwelcome) circumstances - for example, a broken boiler, a blown car engine or a leaking roof. An emergency fund is vital for keeping your personal finances healthy, should an emergency arise.

Your emergency fund can also provide a much-needed lifeline if you’re ever unfortunate enough to suffer a loss of income. Whether it’s losing your job or developing an illness, having those funds aside means there’s one less thing to worry about while you get back on your feet.

What should an emergency fund cover?

Should I have an emergency fund?

Where should I keep my emergency fund?

Is an emergency fund different from savings?

How much emergency fund should I have?

How do you build an emergency fund?

How long does it take to build an emergency fund?

Start building an emergency fund today

Let us help you build your emergency fund with a Furness Building Society savings account. To get you started, read our article: "6 Top tips for choosing a savings account"

Setting up an account with us is easy - you can apply either online, by post or in-branch. Once set up, simply sit back and watch your emergency fund grow!