How to save for a rainy day

Lots of people are struggling to make ends meet these days, so putting money away for emergencies doesn’t always seem possible.

More than 1 in 10 people in the UK have no savings at all and over a quarter have less than £1,000 saved, according to research by the Building Societies Association (BSA).

But when life happens, unexpected expenses can crop up forcing people to borrow so they can cover their bills.

About a fifth of adults also say they don’t think they’d be able to cover an unexpected £300 expense.

For context, the cost to repair a broken boiler can set you back anywhere between £100 to £500, with the average cost being £300. Simple car repairs can set you back hundreds, if not thousands of pounds.

So, what can you do if you’re struggling to save and worried about unexpected costs cropping up?

Check if you’re missing out on support

Lots of households in the UK are missing out on support they’re entitled to because they simply don’t know they can claim it.

However, there are a few benefits calculators online that can tell you exactly what support you could apply for.

They’re free and it typically takes just a few minutes to check, so it’s worth doing to make sure you’re not missing out. Remember, support could be available even if you’re in work depending on your circumstances.

Check if you’re eligible for a Help to Save account

If you’re on benefits, you could be eligible for a Help to Save account. This account is designed for people on Universal Credit who’re struggling to save.

When you save £1 with a Help to Save account, you’ll get a bonus of 50p. You can save between £1 and £50 each month, although you don’t have to save every month. But, if you were to save £50, you’d get a £25 top-up that month. At the end of the year, you’d have around £900.

If you opened the account while you were on benefits, but then came off benefits, you can still keep using it and receive the bonus. And, if you live with your partner and you claim benefits as a couple, you can each have your own Help to Save account.

You’re allowed to have the account for four years after you open it. After that, your account will close and you’ll get to keep any bonuses you’ve earned.

You can close your account early, but you’ll lose the next bonus and you won’t be able to open another one, so it’s worth keeping it open even if you can’t contribute much for a few months.

It’s a great way to boost your savings if you’re struggling, as the uplift can amount to an extra £300 a year per person.