By Kate Brown
In a world of sudden changes it’s important that we can prepare financially for unexpected expenses. Whether it be a flat tyre, a broken washing machine or losing work, it’s beneficial to have some cash set aside to help us out.
According to the Money Advice Service, having at least three months’ essential outgoings in an emergency savings account with instant access is a good rule to live by. For example, if our monthly outgoings amount to £1000 we should aim for at least £3000 in emergency savings.
However, senior economist and managing director of group research at ING, Ian Bright, said “many simply do not have any money at the end of the month to put aside” and this represents “how financially fragile many people are”.
A recent international survey conducted by ING found that more than one in four households have no savings they can quickly access. Slightly higher than the European average of 26%, 27% of people in the UK have no emergency savings.
In addition, many of the UK public are facing debt. Of those surveyed in the UK, 27% reported having credit card debt, 13% had an overdraft, 12% had debt from a personal loan, 8% had a student loan debt, and 7% reported owing money to friends and/or family members.
However, research this week from Money Facts found an increase in the cash savings market in 2018.