Before you begin saving or investing for your future, it’s important to have a certain amount of money stored away that you can easily access in the event of an emergency.

A financial buffer is money you set aside to cover unexpected but necessary expenses — like replacing a broken washing machine, repairing your bike or car, or paying an unexpected medical bill. It’s not about luxury spending or planned goals such as holidays or buying a house. It’s about being prepared when things inevitably break or need to be replaced, or life takes an unexpected turn. This is a key step in building your financial resilience.

A buffer should fit personal circumstances

There are a few different approaches to calculating what your financial buffer should be. Some people aim to save up to six month’s salary, others prefer to sporadically save whenever extra money is lying around. The problem with these methods is that they don’t involve any sort of risk assessment. That’s why we would suggest using a tried-and-tested tool built on well-researched formulas, developed by an authoritative organisation like Nibud, the Dutch Institute for Budget Education.

On their website, you can make use of a handy calculator that can help you understand what an appropriate amount of money would be, based on not only your financial situation but the likely cost of upkeep of your housing and possessions.

What is the Nibud BufferBerekenaar?

The BufferBerekenaar, or buffer calculator helps households estimate how much money they should ideally keep as a financial buffer, based on their personal situation. You answer a few simple questions about your household, income, and possessions, and the tool shows the recommended buffer for your situation — called the Adviesbuffer.

How it works

The calculator currently exists only in Dutch, but if you aren’t able to read Dutch and would still like to make use of the Netherlands-specific calculations, we’re here to help!

The calculation is based on three key categories:

1. Household items (Inboedel)  +  Home and garden maintenance (Onderhoud) – things like your computer, washing machine or bike or replacing a boiler, repainting your house.

2. Car maintenance or replacement (Auto) – the expected cost of replacing your current car, regular repairs and upkeep.

3. Unexpected costs (Onvoorzien) – such as medical excess, a tax correction, or a higher-than-expected energy bill.

Nibud assumes that most items last around ten years and that you might need to replace about 60% of them immediately when something breaks. The tool also assumes you’ll replace things with similar-quality products, not cheaper or second-hand ones — but you can adjust the amounts up or down to match your own reality. The result is your personalised buffer (aangepaste buffer).

If your buffer is temporarily lower after an expense, that’s perfectly fine. The goal is to replenish it gradually by setting aside a bit each month. Once you’ve built your buffer, you’ll have more financial peace of mind — and you can start focusing on other goals like saving or investing.

What isn’t included

The buffer doesn’t cover income loss (like unemployment or retirement), or big life goals such as buying a house or paying off your mortgage. Expenses like holidays and clothing also fall outside the buffer, because they’re regular and can be planned ahead.