Experts have revealed the exact amount of money Brits should have stashed away as a “safety net”
Financial experts have disclosed the precise sum Brits need to keep tucked away as a “safety net”. This contingency fund is vital for unforeseen costs like large bills or vehicle maintenance.
Specialists at NatWest emphasised the significance of establishing a “savings safety net”. On the bank’s website, they said: “A savings safety net helps prepare you for unexpected expenses.
“How would you cope with a large, unexpected bill? What if you have a leaking pipe or the exhaust has fallen off the car? Things like that can happen at any time, but having a safety net could take the stress out of the situation and help you manage the cost.”
As reported by the Daily Star, therefore, they recommended maintaining “at least” three months’ worth of living costs in your account. However, “ideally”, this figure would stretch to six months’ worth.
Working out your target amount
To work out how much your savings safety net should be:
- Examine your monthly budget
- Note down all expenditure requiring monthly coverage (mortgage, utilities)
- Total these figures and multiply by either three or six
Lewis Broadie, savings specialist at Natwest, said: “Customers who start building a savings safety net tell us that the best way to do that is by setting a goal, which is personal to them, and committing to that goal by putting away a small amount each month.
“Doing this when you are paid, and taking the approach of saving little and often, means it all adds up quickly – resulting in less worry and more confidence for whatever the future holds.”
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Building your savings
Reduce your monthly outgoings – look at your budget and decide whether you could reduce any spending each month (then reduce it).
Open a savings account if you don’t have one already – You may want to might want to think about opening a new one with instant access just for your savings safety net.
Set a savings goal – Based on how much you need to have for an emergency fund. Once you’ve met your target, you could set yourself a new goal to save towards
Pay yourself first – Set up a regular payment into your savings account for when you are paid, just like you would for a rent or mortgage payment.
How much does the average person have?
According to a Finder savings survey from January 2025, the average Brit has the following savings:
- 18 – 24: £4,759
- 25 -34: £9,357
- 35 – 44: £7,434
- 45 – 54: £13,318
- 55+: £27,949