It might be hard to think about setting aside any money as savings, but at the very least it’s a good idea to try and have some emergency savings.
Emergency savings is money to fall back on if you have an emergency, such as a boiler breakdown or if you can’t work for a while.
You want to be able to pay for an unexpected repair, but it’s also important to have enough money for a few months in a sticky situation.
Say you lost your job or split up with your partner, and needed some time to get back on your feet – you’ll want a bit more than the cost of a new boiler or washing machine.
Don’t worry if you can’t save this straight away but keep it as a target to aim for.
The best way to save money is to pay some money into a savings account every month.
Once you’ve set aside your emergency fund, possible savings goals to consider might include:
- buying a car without taking out a loan
- taking a holiday without having to worry about the bills when you get back
- having some extra money to draw on while you’re on maternity or paternity leave.