Could you cope with an unexpected bill?

What would you do if you were hit with a surprise expense, like a broken boiler, an unexpected car repair, or emergency dental treatment?

Well, many of us would dip into our savings or rainy day fund - a pot of money put aside specifically for unexpected bills like these.

But a huge number of people simply haven’t got any money saved or emergency funds available.

In fact, figures from the AA show that one in ten (10%) adults don’t have savings.

How to get into the habit of saving

If you don’t have any money saved up and you’re faced with a surprise expense, you might have no option but to borrow money or rely on credit.

So it’s important for your own financial resilience to try to build some form of safety net.

Of course, saving money might seem difficult right now if you’re already struggling with soaring costs.

But we should stress that you don’t have to save huge amounts every month.

Start small

Moving even just a few pounds into a savings account here and there could make a big difference in the long run.

Saving just £1 a day adds up to £30 a month and can help you get into good habits and means you’re not giving yourself a mountain to climb straight away.

“Even small, regular contributions could help build a safety net over time,” said Adam Robery of the AA.

“Having even a modest emergency fund may help people deal with surprise expenses without immediately turning to borrowing.

Automate your saving

Set up a standing order so a small amount of money automatically gets moved into your savings account each month.

Create a budget

You might be able to free up money to put into savings if you get to grips with your household budget.

Work out how much money you have coming in and exactly where it’s going.

With this information, you can work out how much you can realistically afford to put aside, while still covering essential costs.

Take a look at our guide to creating a budget to get started.

Set goals

You can stay motivated on your savings journey if you give yourself clear targets and objectives.

You’ll then be able to track your progress and mark achievements along the way.

Look for the best savings account

Savings accounts usually offer better interest rates than current accounts, so find out which options might offer you the best returns.

Change your behaviour at home

Just a few small changes in our daily habits can lead to big savings, such as:

• cancelling unused subscriptions
• using energy more efficiently
• being savvy in the supermarket

Check out our list of 50 simple things you can do today to start saving money for more ideas on how to keep costs down.

Keep your emergency fund separate from savings

If you have to absorb the cost of a surprise expense, you don’t want your wider financial plans to be blown off course.

So its worth making sure your emergency fund is completely separate from your savings.

A good goal is to have enough saved to cover around three months of your living costs - things like rent, bills, food and transport. 

Again, you just need to start small when you’re building this pot of money.

Even if you only put aside £1 a week, it’s better than nothing. 

We've put together tips on how to build up a rainy-day fund to help you get started.