By Gabriele Denaro · Published 20 September 2026 · Updated 6 October 2026
An emergency fund is money set aside for the unexpected: a job loss, a medical bill, a car that dies. It exists so that a surprise costs you some stress instead of forcing you to borrow or to sell investments at a bad moment. It is not for holidays, gifts or things you can see coming. Those belong in a sinking fund.
A commonly cited rule of thumb is three to six months of essential expenses, not of income. If rent, food, utilities, transport and insurance cost €1,800 a month, that is €5,400 to €10,800. Closer to three months suits a stable job, two incomes and low fixed costs. Closer to six or more suits irregular income, a single earner or dependents. It is a starting point, not a verdict.
The money has to be easy to reach and worth the same tomorrow, so keep it in a current account, a savings account or a deposit you can access at short notice. Do not put it in anything whose price moves or that locks the money for years. It will not earn much, and inflation will slowly eat into it. That is the price of having it available on the one day you need it. If the amount is large, check the deposit guarantee limits of your bank.
A common order is to build a first cushion before investing more seriously, because without it a single bill can force you to sell investments after a fall. High-interest debt, such as a card balance, usually argues for tackling it alongside the cushion. How you balance the two depends on your situation. The point is that the cushion's job is to exist, not to earn.
Keep it in its own account or pot so you can see it and are not tempted to spend it. If you use it, rebuild it before anything else. In Patrimony it lives in the liquid category, which lets you check each month how many months of expenses your liquid money covers.
General educational information, not personal financial, tax or legal advice. It may be incomplete or out of date. Terms of use.