‘Worried’ Brits building contingency funds

Tough economic conditions are prompting more people to prioritise saving over spending.

According to GfK research, July saw the highest number of people saying it’s a “good time to save” since before the 2008 financial crash. 

In fact, 34% of consumers felt positive about saving in July, up from 27% in June.

That’s the highest reading since November 2007.

Neil Bellamy, consumer insights director at GfK, believes this is partly a response to what people are seeing in the news, such as speculation over tax rises and inflation going up.

“The data suggests that some people may be sensing stormy conditions ahead,” said Neil Bellamy, consumer insights director at GfK.

“People who can put money aside are building contingency funds.”

How to build a rainy-day fund

If you have a pot of money set aside for emergencies, you can cover unexpected 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. 

Of course, that will sound a lot - and perhaps even unrealistic - if you’re already struggling to cover your essential expenses.

But you don’t need to save hundreds right away. 

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

So why not take small steps like putting your spare change in a jar at the end of each day? 
 
And then at the end of the month, you can put it into a savings account. 

Life doesn’t give much warning, so if you have a financial shock, such as losing your job or a sudden repair bill, having even a little bit of money put aside can take away some of the stress.