How much to set aside for the unexpected, where to keep it and how to build it step by step.
A broken car, a lost job, an unexpected repair or medical bill – every family faces these. The difference is whether you handle them calmly or with a quick high-interest loan. An emergency fund is the money that gives you that calm.
How much is enough?
A good target is 3 to 6 months of essential expenses – rent, bills, food, transport, loan payments. If your family spends €1,500 a month on these, aim for €4,500 to €9,000.
Go for the higher end if there is only one income, if your work is seasonal or freelance, or if you have young children.
Where to keep it?
- A separate savings account – not the one you spend from every day, so you don’t use it “by accident”.
- Quick access – you should be able to withdraw within a day or two, without fees or losing interest.
- No risk – an emergency fund is not for stocks or crypto. Its job is to be there when you need it.
Bank deposits in Bulgaria are guaranteed by the Bulgarian Deposit Insurance Fund up to €100,000 per person per bank.
How to build it step by step
- First small goal: €500–1,000 – enough for most small surprises.
- Automatic transfer: set up a transfer on payday, even if it’s €50–100.
- Add “unexpected” money: bonuses, tax refunds, cash gifts – at least half goes to the fund.
- Refill after use: if you take from the fund, refilling it is your next priority.
When to use it?
Only for things that are unexpected, necessary and urgent. A new phone on sale is not an emergency. A broken washing machine in a family with a newborn is.
