Three in five Brits do not have £1,000 in savings that could be used in an emergency situation, new research has revealed.
Those questioned by Gocompare.com Savings said they believed they need £1,200 set aside for a ‘rainy day’ yet 59% of people had less than £1,000.
Worryingly still, a quarter of Brits have no savings at all while a third said they rely on credit cards to cover emergencies when savings are not set aside.
Unexpected costs could range from car repairs to boiler replacements to overly high bills, while 28% of respondents felt £2,000 was a reasonable safety net.
This increased to 50% of those aged over 65, making them the best placed to deal with emergency situations and life’s surprises.
Those aged between 35 and 44 were those deemed to be least prepared, as a third of the people in this age bracket had nothing set aside.
Having money set aside can also cover for smaller expenses if required, especially useful in situations where monthly paychecks may be delayed.
Respondents were asked what they consider to be a ‘rainy day’ with 56% saying an unexpected repair or the replacement of a home appliance topped the bill.
Car repair bills were listed by 51% of people while home repairs were named by half of respondents as an expensive issue to solve; boiler replacements were also high on the list, named by 49% of people.
Other costs considered under the category included replacing a laptop, paying large energy bills and replacing technology such as a TV, smartphone or tablet.
A few individuals also classed paying their rent or car insurance as a ‘rainy day’ while 45% of people said they would wait until they had the funds before undertaking repairs, if they lacked the funds originally.
While wage growth remains low, good budgeting is essential to managing all necessary outlays every month.
Despite even the best intentions, sometimes it is not always possible to save up funds in preparation for unexpected situations.
Unsecured personal loans can help in these instances, provided that they can be repaid within any agreed timescales.