If you have decided that 2012 is the year youre finally going to kick your finances into shape, then getting into the savings habit will be a big part of the process. Dont think that sorting out your money needs to be too daunting a task though, Sians got some great tips on how to get organised bit-by-bit.
And now, the saving. This neednt be complicated either. Aside from a current account to use for day-to-day spending, there are only two other places you absolutely must have some money saved up.
1. An emergency fund
With the number of unemployed in the UK at 2.64 million the highest its been since 1994 redundancy is still a big worry for plenty of us. But if you did lose you job, how long would you be able to support yourself and your family?
Thats why if you save for anything this year, it should be an emergency fund. Yes, you could get some form of insurance, but ASU accident, sickness and unemployment insurance is often expensive and has a lot of exclusions, meaning you could end up with much less cover than you thought.
By creating your own emergency fund, you are effectively insuring yourself. You dont have to rely on hoping a policy pays out if you find yourself in trouble, you know you have the money.
The average family with two children needs to earn nearly £25,000 a year after tax to meet all of their essential outgoings, according to research carried out by Skipton Financial Services.