How to create an emergency fund on a low income

Everybody should have an emergency fund – it’s the safest hedge against the ups and downs of life and will help to secure you against losing your job, long-term illness and unexpected family problems like a car breakdown or flooding in your home. Having an emergency fund means that you won’t have to fall back on borrowing money to get back up and running with all the extra interest payments that come with it. But for most people – particularly those on low incomes – having an emergency fund seems like a pipe-dream. In fact recent research from the Money Advice Service showed that  40% of the UK s working-age population (17 million people!) have a savings buffer of less than £100. And over 70% of people survey suffered unplanned expenses during the year so demonstrating the need for an emergency fund. When you’re barely managing, the idea of putting money aside for a rainy day seems laughable. Yet while starting an emergency fund might seem out of reach, it is actually


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