Almost three out of every four people experience at least one unforeseen expense a year. It’s for things like car breakdowns, the oven packing up or even a parking fine that could put a real dent in your savings goal.
The best way to not get caught out is to always put away a little something to cover these costs, even if your main saving goal is for a holiday.
Here’s how to make sure you’ve covered if something expensive unexpectedly happens:
List out possible expenses
What expenses do you think could come up? Is the car showing signs of wear, is the boiler or washing machine very old?
Can you reduce the chance of the cost, by getting a service or insurance?
Can you replace something cheaper in a sale now before it breaks completely or is someone you know offering something you will need or a skill you can get a discount on?
Work out how much a typical emergency fund is for you
This can help you have something to aim for.