What should be the ideal amount for my Emergency Fund?

What is an emergency fund for?

It pays your costs when something goes wrong. For example, a loss of income, an illness or an expensive repair.

With it, you do not need to borrow to fill the gap. And it protects your mortgage repayments.

How much should I save?

In the official sources we checked, there is no set figure. So think in months of fixed costs: the ones you cannot cut from one month to the next.

• Add up your monthly fixed costs: repayment, condominium fees, insurance, water, electricity and food.
• Choose how many months to cover. For example, 6.
• Multiply.

If your income varies a lot, or if there is only one income at home, cover more months.

What if my repayment goes up?

On a variable rate, your repayment can rise with Euribor. Table B of the ESIS shows what you would pay in a worse scenario. Count that difference when you size the fund.

An example with the sums

Your fixed costs add up to €1,200 a month, with your mortgage repayment included. For 6 months, the fund is €7,200, because 1,200 × 6 = 7,200.

If you save 10% of a €2,000 income, you put aside €200 a month. You reach €7,200 in 36 months. These are example figures.

How do I build it?

Set the saving aside at the start of the month, as if it were a fixed cost. Do not wait for what is left at the end.

Todos Contam gives an example: save 10% of your income, or 20% if you want to go faster.

Where do I keep it?

Somewhere you can reach quickly and without losses, such as an account or a deposit you can withdraw. Interest on deposits is taxed, as a rule at 28%.

Before or after buying a home?

Before. The purchase uses up the deposit, the taxes and the deed costs. It is best not to be left without a reserve the next day.

What if I still cannot pay my repayment?

Tell the bank straight away. The bank must give you a document with your rights and look for a solution.

You have 10 days to hand in the documents the bank asks for. If you can avoid default, the bank has 15 days to propose solutions, such as a longer term. It cannot raise the spread or charge fees for this.

Where FINOVA helps

We work out the purchase with you, with the deposit, costs and reserve. See How can I create a family budget I can actually stick to? and the home purchase simulator.

Sources

• Todos Contam — Saving and investing (in Portuguese)
• Todos Contam — Drawing up the budget (in Portuguese)
• Banco de Portugal — How to draw up a household budget
• Banco de Portugal — Arrears prevention
• Banco de Portugal — Time deposits: interest rates
• Banco de Portugal — Lost in your home loan documents? How to read them (in Portuguese)

Sources checked on 22 September 2026.