We are all in this together…
Many of us have never experienced such times as these and we hope never to have to experience them again. We hope members are managing to stay safe. This includes looking after your physical and mental health. Your well-being can be affected in different ways. Financial worries are just one way that can affect your well-being. There is something to be said about regular saving and we are pleased to be helping over 8500 members access Lancashire and Cumbria with just this ‘every month’. In return we paid a 1.4% dividend on all savings in 2019. This has encouraged many of you to increase your monthly save. Your savings can help you cover additional unplanned costs maybe as a result of the current Coronavirus Covid-19 situation. Please read on and see why we recommend you having an emergency fund. Saving isn’t always easy but rewarding and essential for your financial well-being. V Harrison, CEO
Why do you need an emergency fund?
Experts suggest that you need a liquid fund of at least 3 – 6 months of living expenses. This is to help if you are struggling to pay bills or find yourself not able to cover unexpected expenses.
Your emergency fund is there to give you peace of mind in the event of an unexpected financial blow, and can help you from staying out of debt. Your emergency fund will be as important as ever with the current situation. Here are some reasons you should have an emergency fund:
You only have one income
Your emergency fund can ease you through an unexpected job lose or illness that stops you from working. This is more important than ever with the Coronavirus stopping all but key workers from working.
It is suggested that if you are a one-income family or single, you should have 3 – 6 month worth of expenses in your emergency fund. Blues and Twos credit union will help you do this, with regular saving direct from source.
You own your own home
When it comes to owning your own home there are necessary repairs and upkeep bills you need to keep in mind. Most people have homeowner’s insurance, however there are expenses that aren’t covered by insurance. That’s where your emergency fund comes in, the ability to pay for unforeseen, but necessary, home repairs, all without having to put large sums on your credit card. Blues and Twos credit union will help you save for these.
You have medical costs
Most of us are entitled to free healthcare from the NHS, however dental and eye care comes out of your own pocket. Dental and eye care can both be very expensive, that’s why a well-funded emergency fund can help you deal with these costs and make it easier to get through.
Blues and Twos offer you an instant access savings meaning you can get your money out whenever you need it.
Car repairs and maintenance
Having a working car is critical for most working people, if you find yourself without a car you may find it difficult getting to the office or may have to turn to public transport which could quickly become expensive, if you need to travel far.
One common reason for an emergency fund is to cover you for those unexpected car repairs or emergencies. The most common car repairs like new brakes, spark plugs or timing belt could set you back hundreds of pounds.
Be Prepared for anything
While you can’t ever fully prepare for life’s emergencies, the reasons for an emergency fund is long: your toilet could overflow, you may need to travel last minute to see an ill relative, you get a flat tyre, the list goes on.
Blues and Twos credit union encourages you to save for these unexpected payments, we offer instant access savings accounts to the emergency service workers, council workers and education workers and more in Lancashire and Cumbria. Click here to find out how to join.
We are people helping people, through these difficult times. Stay safe.
Jonny Boult, Marketing Assistant
