How big should an emergency fund be?

There is no official rule. Three to six months of essential spending is a common guide; more if you are self-employed, on a single income or in an insecure job. It should be in an account you can get at within days.

Why keep cash when investing pays more on average?

Investments can be down at the very moment you lose your income or face a big bill. Selling then locks in the loss, and may mean tax to pay. Cash costs some growth but is there when you need it.

Savings

Emergency fund first, or invest now?

Saving a rainy-day fund first, or investing straight away: what each leaves you after tax, and the cover it gives you.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

How big should an emergency fund be?: There is no official rule. Three to six months of essential spending is a common guide; more if you are self-employed, on a single income or in an insecure job. It should be in an account you can get at within days.
Why keep cash when investing pays more on average?: Investments can be down at the very moment you lose your income or face a big bill. Selling then locks in the loss, and may mean tax to pay. Cash costs some growth but is there when you need it.

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