Families And Finances - How To Put Money Aside For Emergencies

If you are a parent with children, you’ll know already about those extra costs we all have to shell out for. Whether it be new school shoes, presents on birthdays and at Christmas, days out at weekends and school holidays. It all adds up, and if you are living to your budget, it can be hard to put money aside for emergencies. Not having an emergency fund in place could lead to trouble and worry. For example, you could be faced with an unexpected bill, the breadwinner in your household could be made redundant, or your appliances could break down leaving you with no fridge or washing machine. If you are on a tight budget but want to save some money for emergencies, then this guide gives you some tips.

Understand your Finances
To be able to set some money aside each month, you have to know exactly where your money is coming from, and where it is going. Take a sheet of paper and list all of your expenses for a month, including how much you spend on sundries like buying a newspaper. If you pay yearly for some expenses, such as insurance or council tax, take the yearly cost and divide it by twelve. Add the result to your monthly expenses. That way you know exactly what your monthly costs are, without having any surprises. Once you know what your monthly expenses are, it will give you an idea of how much money you have left over to put into your savings account.

Use a High-Interest Account
Rather than using a current account to save money, use a high-interest savings account. Some banks offer deals for choosing to save with them, so do some research to get the best rates and the best offers for your account. It is important to remember that you might need instant access to your savings, so, for example, a 10-year ISA might not be appropriate. Look for instant access, with a good interest rate. If you want to save regularly, the set up a direct debit for a set amount to go from your current account to your savings. This saves you from having to remember to move money between accounts, saves you time, and you are less likely to skip a month so will see your savings grow quickly.

Re-Evaluate Your Budget
If you find that there is no money left at the end of the month to save, you need to look at your budget to see where you can cut costs. For example, you could try swapping to cheaper brands to save money on your shopping bill. Often, good savings can be made this way without any compromise of quality. If you have a habit of eating out once a week, why not change it to once per fortnight and put the difference aside? If your car consumes a lot of fuel or falls into a higher tax bracket, consider selling it and buying one with a smaller engine to save you money. Once you begin to look into your budget more closely, you will see lots of areas where you can save.

Save Your Change
Every time you use cash to buy something, save your loose change in a jar. It is surprising how quickly it can add up! As well as acting as a mini emergency kitty for your household, every once in a while, you can bag it and take it to the bank.

Earn More Money
If you are a full-time parent or a full-time worker, there are ways that you can earn a little extra money that you could put aside. You might look into jobs that you can do from home during your free time, such as when the kids are asleep or during school hours. There are all sorts of online jobs available, and this fits in well with a family lifestyle as the hours are often flexible. Examples of online jobs include freelancing, where you offer your expertise for a fee, paid surveys, or online customer service agents. Once you have a little extra income, it becomes much easier to build your savings.

Sell Unwanted or Unused Items
That DVD player that’s been in the back of your cupboard for six months, the CD’s you haven’t played for years, or the waffle maker that was given to you but hasn’t been used because you don’t like waffles… you get the idea. All those items that take up space in your cupboards could be just what another person is looking for. Take photos of them and list them on auction websites, or use local listing son social media. Selling items can be a quick way of raising cash, and a way to see your savings grow.

It can take a while for your savings to add up, so if you are in need of emergency cash, you might consider taking out a small loan. A loan can be a quick solution to get you out of a fix. However, it is unwise to take out more than you need. You should also shop around for the best rates, and only take a loan out if you know that you will be able to pay it back. But how do you get a loan if you have a poor credit history? Well, there are loans available that are offered without performing a credit check, such as from this website.

When we are living day to day, having emergency savings put by is not always the first thing on our minds. But it is better to be prepared than to be left feeling worried when faced with emergency costs. It is never too late to begin saving, so if you haven’t done so before, start now. Once you get into the habit of saving money and have reached the first savings goal you set for yourself, it is a satisfying feeling. It also gives you peace of mind to know that you can cover costs should you need to.

- This is a guest collaboration.


  1. Understand Your Finances :- Makes sense to know your financial incomings and outgoings. Though when busy, or distracted could easily loose track. Worthwhile getting a small notebook to note all costs. As can easily vary from month to month, etc. E.G. New household item /s needed as replacement, maintenance, repair /s, etc.

    So certainly worthwhile aiming / attempting to save. As ideal to aim to avoid requiring / needing a loan :- As increases outgoings, due to the interest charges.

    Rachel Craig

  2. High Interest Savings Account :- Where??

    Rachel Craig

  3. great tips you never know when an emergency occurs