Emergency Fund

Are your savings "fit for purpose"?

Are your savings "fit for purpose"?

I suspect like a lot of the UK population you have made some New Year resolutions about getting fit and losing a few pounds. These resolutions normally do not last past the beginning of February, so try something different; gain a few pounds, (in the purse or wallet), and ignore the diet!

Everyone needs some savings; borrowing money to meet emergencies is expensive, hard work and precarious.

Think of saving as four pots; emergency, holiday, next car and pension.

As a golden rule, do not spend all your income, set some aside for later and spread it across your savings pots.

Why we bang on about an Emergency Fund

Why we bang on about an Emergency Fund

One of the basic building blocks for a realistic personal financial plan is an “Emergency Fund”; six to twelve months of take-home pay, held outside of your current account but accessible in real need. Typically for our clients, this would be an instant access cash ISA, money in a Credit Union or money on deposit in a bank.