How to start an emergency fund

Now I don’t know about you, but I feel like I could always do with saving more money. As well as having my regular savings account. I also make sure that I put money aside each month for my emergency fund. Why? Well because it’s reassuring to know that whatever the emergency, I’ll be able to cover the cost. Without having to dip in my savings. So if you’re wondering where to begin with saving. Then here is how to start an emergency fund.

JUST START

Now, this might seem an obvious one. But the easiest way to start an emergency fund is to just start today. It could take you a while to build up your first £1,000 but that’s OK. Even if you just start with transferring the odd amount every now and then. You’ll be surprised at how quickly it adds up.

But if you want to add more quicker, then start monitoring your spending and seeing where you could make any cuts that could be added to your emergency fund. Look at your budget, are there any savings to be had that could be added to your emergency fund?

DECIDE WHERE TO KEEP THE MONEY

Once you’ve worked out how much you can save. And how often you can save for your emergency fund. You need to work out where you want to put the money. Personally, I like to use an instant access savings account with a high-interest rate – which is easier said than done at the moment. But any interest you can earn is a bonus!

STICK TO YOUR SAVINGS PLAN

Now this one might be the hardest, but once you’ve made a plan of how much you can save each month. And you’ve found the right account for you. You need to stick to your plan, and put as much as you can afford into that account as often as you can. For me, alongside my monthly direct debit, I also add any money remaining in my account before the next pay day into my emergency fund.

So that’s how you start an emergency fund. And while it might seem daunting to begin with, the easiest way to start one is to just start. Open a savings account put some money aside and then plan exactly how much you want to, and can afford to, save each month.

It’s honestly so reassuring to know that if something was to go wrong unexpectedly. Then it’s not such a big financial hit. In my case it was me needing to call out an emergency plumber when I couldn’t get any hot water. At a tune of £350 no less. The cost did sting a little. But I knew I could afford it with my emergency fund and let’s face it. We all need hot water!

Let me know in the comments below if you have an emergency fund. Whether you’ve started on. And your tips on sticking to your savings plan to build up your emergency fund.