The study findings revealed that if a family had to pay out for more than just one unexpected cost, this would take outgoings over the average monthly household disposable income.
Common unforeseen expenses included car repair bills and weddings abroad – both of which can end up setting us back far more than we originally anticipate.
The report also noted that smaller but more constant unplanned costs could also have an impact. Fees for children’s hobbies, after school clubs and monthly car insurance charges all mount up and make it harder and harder for families to build up savings for when more expensive unplanned costs are incurred.
Head of savings at M&S Money, Paul Stokes, has advised families to plan ahead and save what they can – even if their budget is already stretched.
Start up an instant access savings account so that money can be accessed quickly if necessary, and try to put some money into this account every month, no matter how little.
Simple additional ideas include using a money box. It may sound old fashioned but resolving to put your odd pound coins or silver in there can actually build up to more than you think before you even notice.
There are also some great new savings account options out there. For example, Lloyds TSB Save the Change scheme rounds up your spending’s to the nearest pound every time you use your debit card – and transfers the excess into a nominated savings account.
If you are struggling to budget and save, you may benefit from getting in touch with a professional accountant so they can advise you on how best to organise your finances.
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