As the dust settles following your recent rotation, now is the perfect time to take a breath, take stock of your finances and start thinking about an emergency fund. And no, it’s not just for your parents or those who casually leaf through the Financial Times over breakfast. Think of it as your personal financial safety net: a buffer that can turn panic into peace of mind when life throws the unexpected your way. More importantly, it gives you the breathing room to plan and stick to those plans with confidence.
This isn’t the enormous task you might think! You’re already navigating relentless night shifts, unpredictable rotas, and the ever-rising cost of living. It’s no surprise that many doctors feel uncertain about where their money stands, or where it’s heading – this is exactly where your emergency fund comes in.
What is an Emergency Fund, and why do you need one?
Put simply, an emergency fund is money set aside for life’s curveballs! Think unexpected expenses, car repairs, sudden travel, or even a gap in income if you find yourself between jobs, or you are ill, as you will still need an income if you are ill. Your very basic NHS Sick pay for young doctors could end before you are back to work! Perish the thought, you don’t have any income protection.
(If you have not yet added income protection to your arrangements, please see information about how helpful and affordable income protection can be.)
What an emergency fund isn’t for: holidays, new tech, or treating yourself after a rough week (as tempting as that may be). It’s there to keep you afloat when things go wrong – so that one financial hiccup doesn’t spiral into chaos.
How much should you aim for?
The classic advice is three to six months’ worth of essential expenses. But let’s be realistic, most junior doctors aren’t sitting on piles of spare cash. So here’s a more practical approach:
- Start with £500 – £1,000: Enough to cover a car repair or emergency travel.
- Build towards one month of expenses: Rent, bills, food, transport. Start by grabbing your online banking app and totalling your fixed outgoings.
- Eventually aim for 3–6 months: Especially if you’re planning to locum later in your career or take a career break / live and work abroad.
The key is to start. Even £50 a month adds up over time, and it’s far better than nothing.
Where should you keep it?
Your emergency fund needs to be:
- Accessible: You don’t want it locked away where you can’t access it when you need it quickly.
- Separate: So, you’re not tempted to dip into it for everyday spending.
- Safe: No risky investments. This isn’t the place for crypto or shares.
A simple instant-access savings account works well. Some of my clients use Monzo or Starling to set up dedicated “pots” or “spaces” for their emergency fund. They are right there on your phone, should you need to move funds into your current account. You could also enhance tax efficiency by using a Cash ISA. Others prefer traditional banks with a linked savings account. Whatever works for you, just make sure it’s easy to reach, just in case you need it.
Why it matters more than ever in 2025
NHS pay uplifts have been hard won. For those, locuming rates fluctuate with demand falling in some areas. Rent in cities such as Bristol, Manchester, and London continues to climb. And the cost of living remains stubbornly high.
Add to that the unpredictability of junior doctor life and the stress of ongoing exams and rotation, and it’s clear that financial stability isn’t just about long-term planning. It’s about having breathing space and something you don’t need to worry about because you know it’s sorted.
An emergency fund gives you options. It means you can say “no” to an extra shift if you’re running on fumes, you’re not panicking when your car fails its MOT the week before payday, and you’re not relying on credit cards or overdrafts to get through the month.
Tools to help you build it
If you’re not sure where to start, here are a few apps that work well:
- Plum: Automatically sets aside small amounts based on your spending habits.
- Monzo: Lets you create savings pots and set goals.
- Emma: Tracks spending and helps you spot areas to cut back.
- Snoop: Flags subscriptions and bills you may be able to reduce.
You don’t need to be a spreadsheet expert. Just pick an app, set a monthly savings target, and get started. From little acorns, big oaks can grow!
Final thoughts
Emergency fund planning isn’t glamorous. It won’t make your Instagram feed. But it’s one of the most empowering financial moves you can make as a young doctor. It’s about giving yourself space to breathe, to recover, to choose. To be proactive, not reactive.
Start small. Be consistent. And remember, your future self will thank you. Do get in touch if you need help and advice on building your emergency fund.
Are you now ready to start your emergency fund? Let us know by adding a comment below.