You may be able to meet your needs and expenses each month, but how would you cope with an emergency or unexpected cost?
What if your car breaks down, you lose your job, or face an unexpected bill?
Putting money aside for emergency or unexpected costs isn't easy, If you are not careful, an emergency or unexpected cost can tip you into financial hardship.
Being prepared for the unexpected, rather than dealing with it only when it arises, is key to your financial wellbeing.
Set savings goals to track your progress and measure your success. Plan to build up enough savings to cover at least three months of essential cash outflows, in case of emergency.
Discuss your savings goals with your loved ones. Explain what they are for and why they are important. Sharing a savings goal with those around you can help you to stay on track.
Keep your emergency funds separate from the money you use for everyday spending. Setting up a separate savings account can usually be done quickly online using HSBC Online Banking.
Try to save regularly and automatically. Set up a standing instruction from your regular bank account to a savings account.
If you can't save a lot, it can be hard to get motivated to save at all. But saving any amount (however small) is helpful, and can build up a valuable emergency savings fund over time.
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