Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money. If you have a question or need help, you can chat to them here.
Your car has broken down, your teeth are screaming in pain, or your phone has fallen down a drain. Everything seems gloomy, dark and, in your phone’s case, damp.
This is where having some money put aside will make an awful day a tiny bit better.
WRONG... The answer is 6 weeks outgoings
Experts suggest 3-6 months wages, but that's for older people with mortgages, and other serious commitments...like children. We'd suggest around six weeks outgoings will do it (saving a months rent is handy anyway in case you have to move house and need the deposit).
To work out your personal six-week sum, sit down with a piece of paper and list everything you spend a month. Stick to the necessities:
Food
Bills, heating, electricity, internet, council tax, phone
Rent
Transport, say to and from college
Tot up the total and make that your saving goal for your rainy day fund.
WRONG... The answer is False
After paying your rent, bills, and debt, and ensuring you’ve got a solid emergency savings fund it can be tricky to find any money left, at the end of the month.
But remember that this fund doesn’t have to be huge. Hopefully you'll barely have to use it. Did you know that saving just £3 a day (that’s a supermarket meal deal) can total £1,095 a year?
WRONG... The answer is True
They tend to have low interest rates in return for making your money available in seconds, when you need it. Just be sure that you’re eligible and that you can easily transfer money between accounts with no restrictions. Finding one that’s accessible online is great too.
NextWell done!
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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money. If you have a question or need help, you can chat to them here.
