Could you handle £1,590 in unexpected costs? How to prepare for a ‘rainy day’

Surprise expenses happen to everyone. Whether it’s a broken washing machine, a failed MOT, an unexpected vet bill or a pesky parking fine, big or small, these bills can seriously mess with your budget.

The cost of the unexpected

A survey of 2,000 UK adults by Norton Finance found:

• the average Brit spent £1,590 on unexpected bills in the last two years
• one in ten people spent more than £4,000

An emergency fund is not always an option

With everyday life being so expensive, many people don’t have money set aside for emergencies.

• 31% said the cost of living is too high to build an emergency fund

• another third said they have to prioritise essentials over saving

The impact of surprise bills

Financial setbacks

• 40% of people say an unexpected bill derailed a financial goal
• younger people are hit hardest:
• 57% of 25-34s and 63% of 18-24s say their financial goals were affected

And recovery isn’t quick:

• most people take over six months to bounce back
• at any time, one in five Brits are still trying to recover from their last surprise expense

Emotional toll

Unexpected bills don’t just hurt your wallet, they can affect your mental health too:

• 43% said they caused serious stress or anxiety
• over 30% felt panicked or overwhelmed
• 26% had their sleep disrupted due to the stress

Top unexpected expenses

According to the research, the most common surprise costs are:

• home repairs (22%) - things like broken boilers, washing machines and plumbing
• car repairs and maintenance (21%)
• family emergencies (12%) including funerals, care or helping relatives
• medical bills (7%)
• pet bills (7%)

How we cover the costs

When an unexpected bill hits, the research found that using general savings was the most common way people cover the costs (33%), followed by a dedicated emergency fund (25%), credit cards (12%) and asking family or friends for help (8%).

Others turn to more creative solutions including crowdfunding, using birthday money, and even selling belongings.

Tips to build an emergency fund

Norton Finance shares steps to help you start saving, even if money is tight:

Track your spending

Check your bank statements and group your expenses. Spotting where you're overspending is the first step to saving more.

Set a realistic goal

You don’t need to save a lot of money at once. Start small and build up over time. Even saving a few pounds a week makes a difference.

Automate your savings

Set up a standing order to move money to your emergency fund every month. That way, saving becomes a habit, not a decision.

Want more tips?

For more saving tips, have a read of our blog on how even saving small amounts can make you feel good.

Things like no-spend weekends, where people deliberately choose to do something fun that doesn’t involve spending fortunes, are popular and can mean you’re able to save. 

If you want to get started, check our handy tips on how you can start saving when money is tight.

We’ve also put together a list of ten everyday swaps that could save you over £100 a month.