A savings reserve, also known as an emergency fund, is the money you set aside to cover unexpected expenses. This is not to be confused with traditional savings, which finance life projects such as holidays, the savings reserve will help you cope with unexpected expenses:
It's an essential part of your financial planning, enabling you to manage emergencies without having to resort to loans or other forms of credit. It's also an excellent way of reducing financial stress by providing you with a reliable source of funds. The savings reserve should be built up before any other type of savings and must be reconstituted as soon as it has been drawn on.
"}},{"componentType":"sectionTitle","title":"How do you determine the amount of your savings reserve?"},{"componentType":"paragraph","richBody":{"value":"There is no specific savings reserve amount that is right for everyone. This will depend on your personal situation, which includes a number of factors such as:
For example, a self-employed couple with 3 children, a house to renovate and two vehicles in poor condition will need to build up a larger financial reserve than a young employee with no children, renting a flat and cycling to work. That said, it is generally recommended that you build up a savings reserve of between 3 and 6 months' net monthly salary.
For example:
The difference in the savings buffer depending on income is explained by the fact that higher incomes generally go hand in hand with a higher standard of living. Calculating the ideal sum is therefore not an exact science; this is merely a recommendation (or guideline). The amount you need to save will depend on a large number of parameters and your ability, for example, to reduce your standard of living if necessary.
"}},{"componentType":"sectionTitle","title":"4 tips for building an effective savings reserve"},{"componentType":"paragraph","richBody":{"value":"Remember that it is important to replenish your emergency fund as soon as you use some or all of it. Once you have built up some contingency savings, you can opt for a pension savings plan in order to supplement your statutory pension. Then you can make your money grow by starting to invest.
"}}]},"hasMacro":false,"id":"d5f00091-ed3d-4e80-9d36-fd0412508f2c","legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"* The terms and conditions of ING savings accounts (general and special terms and conditions, regulations, fees, product sheets, key information for savers for regulated savings accounts and other additional information) are available from ING branches, at www.ing.be and over the phone at +32 (0) 2 464 60 04.
"}}]},"localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Saving","url":"/en/individuals/saving"}},"componentType":"editorialHeader","coreHeader":{"body":"Faced with financial uncertainty, how do you decide how much to set aside each month for your emergency fund or savings reserve? Is there somewhere you can invest your money that’s safe and accessible? You'll find the answers to these essential questions in this article.","title":"How much should you be saving for your emergency fund?"},"date":"2024-06-27","readingTime":3},"publishDate":"2026-07-31T11:05:43.518+02:00"}}