If one income disappears, how long could your family cope?

Sorted's budget planner uses income available after deductions. Put both income and spending on the same monthly basis: use weekly figures multiplied by 52 and divided by 12, and annual bills divided by 12. Four weeks is not a full monthly average.

List the costs that would continue, those that could stop, and those that might increase. Childcare could rise if another adult takes on more work, or fall if arrangements change. Use a realistic adjusted budget rather than assuming the current total stays identical.

Write down the source and date of each figure. Keep the base case simple, then add a separate case for support whose amount and timing have been confirmed. The calculation below is an original planning worksheet, not a Sorted calculator or a recommended savings target.

Illness, injury, a job ending and time away to care for someone are different situations. A policy name is not evidence that every loss of wages is covered. Sorted distinguishes income protection from death benefits and other personal cover; use your own documents to identify the insured event.

For any benefit you want to include, ask about the trigger, waiting period, benefit period, proof of earnings, exclusions, other-payment adjustments and the claim assessment process. A waiting period is not a guaranteed first-payment date. Keep a proposed or unassessed benefit out of the base budget.

A household tests a temporary income interruption. Its first worksheet treats the entire savings balance as available, but some of it is earmarked for an annual bill. The household separates that commitment, updates the remaining income and asks for written employer-benefit and policy details. It compares an unconfirmed-support case with its cash-only starting point. The exercise assigns no claim, treatment or return-to-work outcome.

This illustrative scenario combines common questions and has no corresponding real client. Actual decisions and outcomes depend on personal circumstances, policy wording, underwriting and the insurer's decision.

Sorted recommends keeping emergency savings accessible and separate from everyday spending. A buffer estimate helps identify the period you would need to fund and which assumptions need confirmation. Revisit it when household costs, care arrangements, debt or employment change.

FMA describes insurance advice as a discussion of needs, premiums and policy terms. This worksheet is general information, not advice on a savings target, cover amount or product. Personal advice needs current written disclosure and an assessment of your circumstances. There is no promise of a price, acceptance, payment or processing time.

Can I divide savings by our current total spending? That ignores income still coming in and money already committed. Work out the adjusted shortfall first.

Does income protection cover any reason my pay stops? Do not assume so. Check the insured event and exclusions in the actual policy, including any conditions about losing a job.

Can I budget for payment as soon as the waiting period ends? Do not treat that as a promised payment date. Confirm the assessment requirements and timing with the insurer.

Does this give me a recommended number of months to save? No. It describes the resources and gap in your own assumptions. A suitable plan needs a wider assessment of responsibilities and risks.