Overview
- The guidance sets a target of roughly three to six months of essential living expenses as a financial buffer.
- HSBC advises keeping the fund in a separate, easy-access savings account rather than in locked accounts or investments.
- The bank recommends setting up a standing order on payday to build the reserve consistently over time.
- The suggested amount should reflect personal circumstances, with higher earners often needing larger cushions due to higher expenses.
- Examples of emergencies cited include car repairs, unplanned travel and job loss, with the aim of providing peace of mind.