How Big is Your Emergency Fund?

July 9th, 2016

It is a financial pain we have all experienced. Everything seems to be motoring along okay, but then  something happens to cause a considerable and unexpected bill, leaving you with headaches over how you will cover it. Research by Provident has found that, on average, we pay £548 per year on unexpected expenses. These “emergencies” typically crop up three times a year. Yet despite this frequency, 57% of us don’t budget for this – either through our monthly income or by specifically saving for such scenarios.

As a result of these nasty surprises, 35% had to forgo holidays, and a further 15% even had to give up foodor daily travel to cover the costs. Our cars are the main culprit, costing an average of £142 in unexpected bills, closely followed by pets (£54), unanticipated leisure activities (£58%) and homewares (£77).