Money and rights · 15 min
A small cushion of savings
A small amount set aside automatically, however little, so the next broken appliance is a nuisance rather than a crisis.
Unexpected costs arrive at the worst times: a repair, a trip to see a parent, a week without pay. Without anything set aside, they can lead to borrowing that is hard to pay back. A small cushion, built slowly, can make these moments much less frightening. It does not need to be large to help.
The steps
Four small steps,in your own time.
Choose a small amount you could set aside each week or month without noticing too much. It is fine if it is very small.
If your bank allows it, set up an automatic transfer to a separate savings pot on the day your income arrives.
Give the pot a name that reminds you what it is for, such as the cushion or the emergency fund, and decide what counts as an emergency.
Leave it alone except for real emergencies, and when you use it, start topping it up again as soon as you can.
The reason
Why it helps
Saving automatically means you do not have to decide to do it each time, which is when good intentions often slip. Keeping it separate makes it less likely to be spent on everyday things. Even a small amount can cover a minor emergency, which may stop it turning into a debt.
A gentle variation
If there is nothing to spare at the moment, start with something tiny, like rounding up purchases or putting aside any coins at the end of the week. If money is very tight, an advice service may be able to check whether you are getting all the support you are entitled to.
WE · TRIBE
Try itwith someone.
If you share money with a partner, agree together what the cushion is for and when it can be used. If you help manage money for someone you care for, think about whether a small cushion would help them too, and talk about it with them.
Try it today
Today, choose one small amount you could set aside automatically each month, and write it down.
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