Emergency Fund 101 – Where To Start
How much should I have in my Emergency Fund?
Your Emergency Fund aim is really down to you! Firstly ask yourself what you can afford to save and what costs would you need to cover in the event of a financial emergency?
The most common Emergency Fund goal is £1000. For most, this is enough to cover a mini emergency such as a broken boiler, car repair or a few weeks off work!
Where should I keep my savings?
Where you choose to keep your savings is your choice. And you should make the decision that’s going to work best for you!
You could consider talking to your bank about setting up a savings account or ISA (look for good interest rates and ease of withdrawing money!). If you use online banking this might be the best option for you as you can keep an eye on how much you’ve saved and easily transfer money between accounts!
If you’re looking for a quick fix and convenience, you could look into an automatic savings chatbot, I currently use Cleo and Plum. These savings chatbot’s are simple, once you’ve signed up they will analyse how much you spend and how much you could afford to save each month. With you permission the chatbot will then move the specified amount of money over into a savings account. You can withdraw your money at anytime and you’ll also get personalised updates on your weekly spend.
How can I build up my funds?
There are tons of ways you can earn some extra money to help your emergency fund on it’s way.
A whole range of casual/part-time work opportunities and freelancing gigs are being advertised daily. You just need to find the right side hustle for your skills and level of experience. If side hustling sounds like your cup of tea then check out my side hustle page.
If you’re looking to build up your funds from the comfort of your own home then surveys, reselling, ux testings and offer websites might be the best option for you! The payment on these can really vary so make sure that you’re looking into the best paid online opportunities for you!
Other simple ways to save and earn money include mystery shopping, cashback sites and referral programmes. If you’re serious about reaching your emergency fund goal then I’d recommend signing up for all three of these!
What’s your emergency fund goal? And how are you planning to reach it? Let us know in the comments below!