How to build your financial resilience

If you have little or no savings to fall back on, an unexpected bill or sudden expense can cause serious problems.

But worryingly, many of us don’t have much of a financial reserve.

According to Royal London:

• one in five UK adults have less than £100 in savings
• one in ten are on the brink of a financial crisis
• almost half of families with children under 18 are feeling the pinch or close to crisis point

These are worrying numbers.

But there are practical steps you can take to feel more in control and be more resilient in the face of the financial shocks.

Contact your energy supplier

If you’re struggling with your energy bills, speak to your supplier, as they might be able to offer help such as:

• grants
• affordable repayment plans
• temporary payment breaks

You could also look at switching your tariff or energy supplier to get the best deal.
 
Meanwhile, look at how you can use energy in the home more efficiently.

Just a few small changes could make a big difference to your bills, such as not overfilling your kettle, only putting full loads in the washing machine and turning the thermostat down by 1°C

Create a rainy-day fund

Unexpected costs such as a broken boiler, a car repair or an emergency trip to the dentist are often expensive.

So it’s well worth creating a rainy-day fund - a pot of money set aside for emergencies - so you can cover these costs without resorting to borrowing or dipping into 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. 

Even putting away a small amount into your rainy-day fund regularly could make a big difference if or when you ever need it.

Check what support you’re entitled to

Make sure you’re not missing out on state support that could help you cover essential costs. 

If you're unsure whether you’re receiving all the help you’re entitled to, we can check for you.
 
Get in touch or try our benefits calculator.   

Review your budget

You can feel more in control if you have a clear idea of how much money you have coming in and where it’s going.

Then you’ll be in a position to prioritise your spending and work out where savings can be made.

Ask yourself questions like:

• Are there subscriptions I’m paying for but not using?
• Could I switch energy or phone providers to save money?
• What small treats or habits could I cut back on, just a little?

You might be surprised where you can free up a few pounds, which could then go into your emergency fund or help cushion any future price rises.
 
We’ve put together a handy guide on creating a budget, and we’ve got a free budget planner to get you started.

Don’t be afraid to ask for help

If you’re struggling or just want a helping hand to get things on track, then we’re here for you.

We offer free, impartial advice with no judgement and can help you explore all your options.

We’ve also got plenty of useful online resources, including regular updates on the latest deals, offers and promotions.