Emergency Fund

Money set aside as a personal financial safety net, separate from the business, covering 3-6 months of personal living expenses if business income stops.

Without a personal emergency fund, a business cash flow crisis becomes a personal financial crisis. Having one lets founders make better business decisions without desperation.

A founder keeps £12,000 in a separate personal savings account, 4 months of her personal expenses. When her biggest client pauses work, she has time to replace that income without panic.