How Much Should You Really Have in Your Emergency Fund?

We say it all the time: everyone needs an emergency fund.

But once you’ve built the basics, what happens next? How much is too much? When should you stop topping it up and move on to other goals?

In this week’s episode of The Vault, we unpack a listener dilemma that so many people will relate to, especially if you’re a saver who still struggles with impulse spending and financial anxiety.

The Dilemma

Our listener is 28, works in the emergency services, and has been slowly building up strong financial foundations. She’s:

• Paid off most of her debt (just £1.5k left on a 0% card)
• Built a £1,000 starter emergency fund
• Saved £20,000 in a cash ISA as her big emergency pot
• Put away £13,000 in a Lifetime ISA for a future home
• Contributing 12.5% to her workplace pension
• Set up sinking funds for upcoming life events (including one for a future baby 👶)

But she’s still asking the question: Do I need more in my emergency fund… or is this just my anxiety talking?

Emergency Funds Are About More Than the Maths

The general advice is to save 3 to 6 months of essential expenses. For some, that’s £5k. For others, it’s £20k+. So technically? She’s already in a great spot.

But this isn’t just about maths, it’s about mentality.

If your job feels shaky, if you don’t have family support to fall back on, if your mental health is impacted by money stress, it makes sense to want more of a buffer than average.

When to Stop Building and Start Rebalancing

If the emergency fund is already making you feel secure, it might be time to ask:

• Could some of that excess be working harder elsewhere?
• Is it time to prioritise investing, debt payoff, or saving for shorter-term goals like travel or home decor?
• Would splitting your excess between financial goals give you more balance and momentum?

You don’t need to empty your emergency pot but topping it up endlessly might be more about soothing anxiety than moving forward.

There’s no one-size-fits-all number. But here’s your sign that if you’ve built your safety net and it’s starting to feel more like a crutch than a tool, it’s okay to shift your focus.

🎧 Listen to Episode 77 of The Vault
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