We’ve all seen the headlines. While it might not feel like everyone is getting fired, finding a new job is taking much longer than it used to. Many experts used to say you only needed three months of savings to be safe. In today’s market, that isn’t enough.
If you want to feel secure, you need a six-month safety net. Here is a simple guide on how to build one, where to keep it, and how to use the tools already available to you.
Why Six Months is the New Goal
The way companies hire has changed. Even if your industry is doing well, the process of interviewing and getting a new offer can drag on for months. This means if you lose your job, you might be out of work for a while. Having six months of cash gives you breathing room so you don’t have to panic or take a job you hate just to pay the bills.
Step 1: Find Your “Must-Have” Number
Before you can save, you need to know exactly how much you spend on the basics. This isn’t your normal monthly budget where you include movie tickets or fancy dinners. This is your “survival budget.”
Focus only on what you need to keep your life running:
Housing: Your rent or mortgage, plus basic electricity and water.
Food: Groceries for simple meals at home.
Debt: The minimum payments on your credit cards or car loans.
Health: Your insurance and any medicine you need.
The Basics: A simple phone plan and internet.
Once you add these up, multiply that number by six. That is your target goal.
Step 2: Pick the Best Place for Your Cash
You want your money to be easy to reach, but you also want it to grow. Don’t just leave it in a standard checking account where it earns nothing.
In 2026, many banks are offering much better deals to get you to save with them. Look for accounts with high interest rates. In the UAE, some digital banks like Wio or Mashreq NEO offer rates as high as 6%.
A quick tip: Always read the fine print. Some of these high rates only work if you move your salary to that bank or keep a large amount of money in the account.
Step 3: Use the Safety Net That’s Already There
If you work in the UAE, you are likely already paying for the Involuntary Loss of Employment (ILOE) insurance. This is a huge help that many people forget about.
If you lose your job, this insurance can pay you 60% of your basic salary for up to three months.
If you earn less than 16,000 AED: You can get up to 10,000 AED a month.
If you earn more than 16,000 AED: You can get up to 20,000 AED a month.
This insurance buys you time. It means you won’t have to dip into your personal savings as quickly, making your six-month fund last even longer. Just make sure you have been paying your premiums for at least a year to qualify.
Step 4: Create a Backup Plan (The Legal Side Job)
The best safety net is having more than one way to make money. In places like Abu Dhabi, it is now much easier to get a “Freelancer Licence.”
This allows you to take on small projects or consulting work legally while you still have your main job. If your primary income disappears, you already have the paperwork and the setup to start earning elsewhere immediately.
Step 5: Put It on Autopilot
Building a big savings pile feels hard if you have to think about it every month. The best way to succeed is to make it automatic.
Most banks let you set up a “saving space” or a separate folder for your money. Set your account to move 10% of your paycheck into that folder the moment you get paid. If you never see the money in your main account, you won’t spend it.
The Bottom Line
A safety net isn’t just about the money; it’s about your peace of mind. When you have six months of expenses tucked away, you aren’t at the mercy of a weird job market. You have the power to wait for the right opportunity instead of rushing into the first thing that comes along. Start small, make it automatic, and give yourself the gift of time.
