How To Save Money For Life's Emergencies

Do you ever feel as though money just passes through your life like water? You’re definitely not alone. For the vast majority of people, money tends to come in with one hand, and straight out with the other. But this leaves very little opportunity to save. 

Why Put Your Money Aside?
You may be getting on quite fine living by your means. But doing this is not going to help in the longer term. Life will throw you financial curveballs to contend with such as being made redundant, falling ill or getting injured and not being able to work, the sudden need to move house, or even having to cover the funeral costs of a loved one. Whether you are paying for Headstones, or sending your car into the garage for major work, the last thing that you want to do is to put yourself into debt for these expensive unplanned purchases. Having a buffer set aside will help you in the times when you need money most. But how do you save?

Set Up A High-Interest Savings Account 
You need to have somewhere separate to keep your savings. Don’t try and keep it in your regular bank account or in an envelope under your bed, you will spend it. Set up a savings account with the bank, but look for one that offers you the chance to earn interest on any money you put in there. The more interest the better. 

Use A Savings App 
Often when we’re saving money we’re inclined to think that we need to put aside big chunks. But this is not necessarily the best way to go. Using an app that evaluates your money and squirrels away small amounts at a time will help you to save without even noticing it. A great example of this is Plum. Giving an AI access to your bank account will mean you will get smarter savings. 

Cut Back On Your Spending
This might be a great opportunity to review your spending. Break down everything that you spend and look to get rid of outgoings you don’t need. That streaming subscription you rarely use, the gym membership that you don’t get much use out of. All of these small expenses can mount up. Reduce the number of takeaways you buy or the frequency that you eat-out at. Start taking your own lunch into work, instead of buying it. Create a budget for food shopping based on a specified meal plan that you have created. Then, only buy food and household goods that you actually need. Reduce your household bills by switching your energy or broadband supplier. Often, we get hooked in on a great deal as a new customer, but once this offer price elapses we end up paying a lot more. At this point, it is worth shopping around and finding a more enticing offer with a different company. Remember, you need to keep switching when the introductory offer is over.

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