Save Emergency Money for the Future

No matter how organised you are or how good you are at planning your finances, one thing’s for sure, unplanned expenses will arise at some point in the future. It is, therefore, a good idea to put aside a little money each month to build up an emergency fund to pay for any unexpected bills.

But what if you don’t have any spare cash to set aside each month? because you have overstretched your existing borrowing. Well, don’t worry, by making a few economies you can save a small amount each month without having to compromise your lifestyle (an even more drastic but sometimes more cost effective, is to take out a debt consolidation loan)

Here are five tips to help you build an emergency fund:

1. Open a separate savings account

It may seem obvious but this step is often missed and it’s one of the most important. By keeping your savings in your current account, it is far too easy to spend the money you save. So don’t give in to temptation and open up a separate savings account.

2. Make saving a priority

Arrange for a small amount to be transferred each month from your salary into your savings account. It doesn’t matter how much it is, even a few pounds each month soon adds up over time. Just make sure you pay it in each month and treat it as a bill which must be paid. Check out our article on getting your finances in order to see how much money you can realistically put aside each month.

3. Use savings apps

Savings apps are a great and painless way to top up your savings. These apps round up to the nearest pound every time you make a purchase and deposit the difference into your savings account. For example, if you purchase something for £4.55 the app will deposit £0.45 into your account. These small amounts can soon add up to a tidy sum without you even noticing.

4. Make the most of discounts

Get into the habit of shopping smartly. Collect coupons to get discounts on your favourite goods and keep your eyes open for the best deals. Don’t buy big brands if you can help it. Buying supermarket own brands can save you a pretty penny on your groceries bill. Just make sure you put the money you save into your savings account.

5. Cut something out

One of the most effective ways of saving money is to cut something out of your routine. For example, cutting back on your daily Starbucks Caffe Latte can save you £2.85 a day. That adds up to £712 a year which makes a nice emergency fund to fall back on.

Building up an emergency fund doesn’t have to be hard, make use of some or all of the tips above and you’ll soon have a nice little nest egg ready for those rainy days. The hardest part is getting started, so open up a savings account today and start saving

Simple Personal Loans is also here to help you out if you need a loan for any occasion, whether you have good or bad credit, you’ll be suprised at the APR rates our lenders are offering at the moment.