How much should I be saving for a rainy day?
Financial experts used to recommend saving a “cushion” of three months’ salary to guard against unexpected costs or a redundancy. However, the Government’s Money Advice Service has come up with a more achievable figure based on a survey of the average cost of the domestic emergencies we are likely to expect over a year. This includes potential nightmares such as £1,341 on car repairs, £245 on washing machine repairs, £194 at the opticians and £245 on vet’s bills. They calculate your odds of suffering one or more of these costs mean we should be tucking away £1,101 a year – or £3 a day.
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