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Cheaper than taking a loan or paying with a credit card.

Saving soon becomes a habit.

If you save an amount of money within your means you should be able to leave it for emergencies.


Sooner or late everyone has at least one rainy day.

Interest charges can go up as well as down.

Debts grow too easily.

Lack of money is soul destroying.

Not having cash for goods can mean that you pay more.

Full Review

It is often hard to motivate yourself to save any money. Of course sometimes it is also nigh on impossible, if your income is very limited. Now, more than ever, though, it is vital to save some money for a rainy day.

If your rainy days have already arrived you will know exactly what I mean.

We all need a contingency fund, that we are able to utilise in an emergency.

If your income is small, it will be hard to save any money, but it is worth trying to. Economising around the home and switching Insurance, Energy, Telephone and Internet providers could save you money on your bills. Such unexpected extra cash will be better saved than simply spent immediately. Small loose change can be stored in a suitable jar and then either banked, when there is enough cash or used for emergencies.

The current financial crisis, which has rocked many countries around the world and their banking institutions, has left many people in dire financial straits. It has also discouraged many savers from keeping their hard earned cash in the bamk. However, it is not safe to hide your money at home.

If necessary, invest in long term savings such as stocks and, or, bonds. Remember that, in the UK, the Government offers some protection against the loss of money if, God forbid a bank should collapse. Check out the relevant facts and figures. Most small savers will be protected. You would need to have quite a few thousand pounds in a bank to lose out. Remember though that, if you try and spread your savings between a few banks, some are owned by the same company. For your moeny to be protected in each bank, the bank must be independent of those where your other savings are banked.

Huge tress grow from little acorns.

Despite inflation and the reduced value of the cash in our pockets, it is still fine to save even small amounts of money. All savers have to start somewhere and saving a little is better than saving nothing at all.

Sit down, as a family, and see how you can economise, if necessary. There are so many ways to save a little cash, such as walking instead of taking the car, and taking a packed lunch instead of buying lunch at the staff canteen.

Make sure that you know exactly what money comes into the household, either weekly or monthly, and also what money goes out. Such balancing is necessary to work out just what money you can save.

If you have no money saved at all and something, such as job loss happens, you may be forced to take on debt in the form of a bank loan. Alternatively, you may just need to use your credit card more often. All of this is bad financial practice. Although in general interest charges are relatively low, as more people need to take out loans these charges could rocket.

It will be far better to find the cash needed for new shoes or a new school uniform, than run up debt. Debt has a habit of snowballing. In the end you may need most of your income to meet the charges on your loan, before you even buy food and pay your other bills. It is far better to be prudent with what money you have. This will inevitably mean that you have enough cash for those horrible rainy days.

Not had any such days yet?

Trust me you will some day, unfortunately.

In Closing

Final thoughts.

Without cash you will not be able to purchase goods such as nearly new items, which may be a bargain. Credit card spending often bears little or no relation to actually spending real money and so, such a card, can easily tempt you to spend more money than you should.

Accidents, ill health and unemployment are all too big a part of life in the 21st Century. However lucky or qualified you are any or all of these problems could hit you at any time.

If such a disaster were to strike, how well prepared financially are you?

For many people the answer will be, not very well at all.

Consider what your absolute basic outgoings are each month are and try to have at least that amount of money saved. Ideally, though, you need enough money saved to be able to survive financially for at least three months. Any less is not really a safe amount.