Creating an emergency fund
Ever heard of the term ‘saving money for a rainy day’? This is exactly what we mean! You need to be able to set some money aside each month to put towards your emergency fund so that you know you are covered in case anything bad does happen. Unfortunately, life can be unpredictable and emergencies can happen every now and again from home damages to work uncertainty so it’s important to ensure you have money set aside dedicated to being able to cover you during these times. This allows you to continue saving money for the good things like that dream holiday or your new home fund without having to erase all of your hard work.
Each month, factor into your saving budget a small amount of money that you can set aside from your regular savings into your emergency fund. Even if this £50 a month, this will quickly add up to give you that extra level of financial security.