Why do I need a cash buffer?

Most people aren't as well off as you might think. According to the Money Advice Service, four out of ten adults in the UK have less than £500 saved away to cover an unexpected bill. By slowly building up a cash cushion in your account, you give yourself the ability to prepare for any nasty surprises and hopefully will take away some of the stress from your life. So, why do I need a buffer?

To expect the unexpected

The one thing worse than the arrival of an unexpected bill (you know the sort, flat tyre, leaking radiator, busted boiler) is the fear of an unexpected bill. If you can only just about balance how much you earn each month with how much you have to spend, then even a small unpredictable cost can have a catastrophic impact!

Don’t pay to spend

When you are in a tight spot financially, unauthorised overdraft fees can be an additional cost that, quite frankly, you could do without. These can be made doubly worse, and lead to even more charges, if they unexpectedly hit your account a month later!

Regardless of how you do it (cancel your Sky subscription, take pack lunches to work, stop drinking coffee), even a small monthly saving sitting in your account will build up over time and give you reassurance that you are at least prepared for any surprises that the future may throw at you.

Because Christmas is (always) coming

Christmas is the time of year when it feels good to splash out a bit, whether it's on gifts for the kids, a party for the neighbours or a good old-fashioned, festive family feast. Putting a little aside each month throughout the year means that you will have enough in your buffer that you can do all the things that you want to do without the worry of whether you can afford it or not.

For the fun things in life

Spending your life just trying to pay for the things you need is a stressful way to live and we all need to let our hair down every now and then. Whether it's going to a posh restaurant for your anniversary, or treating yourself to a night out, spur of the moment things are possible when you have some money tucked away.

Regardless of how you do it (cancel your Sky subscription, take pack lunches to work, stop drinking coffee), even a small monthly saving sitting in your account will build up over time and give you reassurance that you are at least prepared for any surprises that the future may throw at you.