How much emergency savings should someone with a 15,000 baht salary have? Many might think to simply multiply their salary by 3 or 6 months, resulting in 45,000-90,000 baht. But in reality, emergency savings should be calculated based on “ essential monthly expenses ” rather than income alone.
The Bank of Thailand (BOT) recommends having emergency savings of at least 3 to 6 times the essential monthly expenses plus monthly debt payments. This is to cover unexpected events like illness, accidents, reduced income, or unemployment without having to rush into loans or borrow from others.
Having emergency savings for 3-6 months does not mean directly multiplying the “salary” by 3 or 6. Instead, it should be based on the necessary monthly expenses if income suddenly stops. The Bank of Thailand suggests this basic formula:
Emergency savings = (Essential monthly expenses + Monthly debt payments) × 3 to 6 months
For example, with a 15,000 baht salary but essential expenses and debts totaling 7,000 baht per month, 3 months’ emergency savings would be 21,000 baht, not 45,000 baht.
Meanwhile, the Stock Exchange of Thailand (SET) offers a similar guideline, recommending emergency savings of at least 3-6 times monthly expenses, kept in low-risk, easily accessible accounts.
Before setting an emergency savings goal, ask yourself, “If I have no income tomorrow, how much do I need at minimum per month to live and pay debts as usual?” This figure serves as the base to calculate a suitable emergency fund for yourself.
Assuming a 15,000 baht salary and after cutting reducible expenses, essential expenses like rent, food, transport, utilities, phone bills, and debt payments total about 10,000 baht per month.
Using the 3-6 month principle, the calculation is:
So, if essential expenses are 10,000 baht monthly, the emergency fund target could be 30,000-60,000 baht. If essential expenses are as high as 15,000 baht, the fund would increase to 45,000-90,000 baht.
Therefore, there isn’t a fixed answer that everyone earning 15,000 baht must have the same emergency savings; the appropriate amount depends on each person’s essential expenses.
This table is an example using the formula essential expenses × 3 to 6 months to illustrate, not a mandatory standard. Try assessing your expenses and compare them with 3-6 month targets as follows.
Essential monthly expenses | 3-month emergency savings | 6-month emergency savings |
7,000 baht | 21,000 baht | 42,000 baht |
8,000 baht | 24,000 baht | 48,000 baht |
9,000 baht | 27,000 baht | 54,000 baht |
10,000 baht | 30,000 baht | 60,000 baht |
12,000 baht | 36,000 baht | 72,000 baht |
15,000 baht | 45,000 baht | 90,000 baht |
First, distinguish between “how much emergency savings should I have” and “how much should I save monthly for emergencies” as these are different.
The 3-6 month rule calculates the total target savings amount. The saving percentage is how much you set aside monthly to reach that goal. Not everyone needs to save 10%, 20%, or 30% of their salary.
A common simple guideline is to save about 10% of your salary monthly. For example, 15,000 baht × 10% = 1,500 baht per month.
However, saving 10% isn’t a strict rule. If setting aside 1,500 baht monthly affects essential expenses, you can reduce the amount to fit your capacity. Bonuses or extra income can be added to speed up reaching your goal.
For those just starting to save, a target of tens of thousands might seem far off. You don’t need to save for 3-6 months all at once; accumulate gradually and set step-by-step goals according to your ability.
For example, if essential expenses are 10,000 baht monthly, you might set goals as follows:
Starting with small goals helps make saving manageable. Once you reach 1 month’s expenses saved, aim for 3 months, then 6 months gradually without rushing to the point it affects daily necessities.
Ultimately, those earning 15,000 baht don’t need to start with a large lump sum. The key is knowing your monthly essential expenses and building your emergency fund from 1 month to 3 and then 6 months as you can. This way, if income stops or unexpected costs arise, you have money to support yourself and reduce the chance of new debts.
References:Bank of Thailand (BOT)andStock Exchange of Thailand (SET)