As well as paying for day-to-day necessities, we often like spontaneously treating ourselves to holidays, new clothes and other luxuries. But then there are those unwelcome payments that crop up every so often – like car and utility bills which we’re sometimes not prepared for.
These extra costs could:
- Add strain to your regular budget, which could result in you dipping into debt every now and again. As easy as this may be for some people, borrowing extra money through loans and credit cards isn’t the most effective way to keep on top of your spending.
- Interfere with saving for the future. Either your future savings – which you may need in retirement – could dwindle over time, or you might not be able to save as much as you’d prefer to.
So what could you do?
It’s really difficult having two types of money pots: one for short-term expenses and one for your long-term financial needs. This could help prevent you from dipping into the money you need for the future or creeping into debt.
Whilst this may seem difficult at times, putting money aside whenever you can afford to could really help you build a pot of money you can access whenever you need it. That way, you can feel much more prepared when anything unexpected arises.
Our Life Goals Tool can help get you started on building your emergency fund
- By following each simple step, you can tell us how much money you can afford to save each month, and we’ll tell you the amount you can approximately build over a certain length of time.
- As the tool is fully interactive, you can make adjustments to test a range of scenarios and see what impact any changes make.
- You can then download an illustration of your summary, which we can email to you if you wish. That way, you’re able to reference back to it whenever you want.
- We’ll also look at the most appropriate route for your money, between saving and investing.
- As well as saving for the unexpected, our Life Goals Tool can help with a range of other financial objectives, including saving for a specific goal or making more of your money.
If you’d like to experience the journey yourself or if you have another goal in mind, simply click here to visit our Life Goals Tool.