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Do you have an Emergency Fund?

Do you have an Emergency Fund?

In May this year, Teachers Assurance worked with research specialist Opinion Matters and surveyed more than 2,000 UK adults to determine people’s attitudes towards savings.

Over the past month, we’ve been writing a series of posts for the Teacher’s Pet Blog, documenting our findings.

Previously, we discussed how much people are saving, what they’re saving for, how they’re saving their money and factors that are affecting their savings. Our final post looks at the importance of having an emergency fund.

Saving for a rainy day

Most experts agree that you should set aside between three and six months of net income in case of an emergency. This is so that if you suffer a sudden loss of income, your living expenses should be covered until you find a new job.

Of the people we surveyed, 55% said they had an emergency fund and 22% of those said the value was between £3,001 and £4,000. Just 12% had saved more than £4,000, which – based on the average UK earnings of around £1,600 each month after tax – is less than the amount recommended by experts.

The importance of having an emergency fund

It can be tempting to spend any spare cash you might have on a dream holiday or a new car but setting aside some money each month can prepare you for unexpected events.

Saving into an emergency fund can help ease the stress that can be caused by financial worries and if you plan for the worst case scenario – such as losing your job – smaller emergencies like home and car repairs can be covered easily.

If you’d like more information about Teachers Assurance, please visit https://www.teachersassurance.co.uk or call us on 0800 056 0563.

Author: Teachers Assurance

Understanding our customers’ financial needs is our business. When life is too busy and stressful to look beyond the here and now, Teachers Assurance helps customers to think ahead to what they could make from their money. It is our aim to help our customers think ahead, make plans and start saving regularly now for a brighter financial future.

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