Life is full of surprises, and not all of them are pleasant. That's why it's crucial to have some savings set aside for emergencies. Whether it's a car breaking down, an unexpected medical bill, an unanticipated course cost or maybe even losing your student job, having a safety net can help you tackle life's unforeseen challenges with less stress.

1. What is a safety net and how much should you save?

A safety net is money saved to cover your essential expenses if something goes wrong. Experts recommend saving enough to cover three to five months of your basic costs. While this might seem unrealistic, remember that you can build it up gradually and don't have to start with a lump sum. To start saving for the unforeseen, first determine how much money you need each month for essentials like rent, bills, food, and transportation. Once you have that figure, multiply it by the months you aim to save for. That should help you have something to work towards. How you reach that target is entirely flexible. You could save, say, £50 monthly, £20 weekly or £150 every two months. Just choose what works best for you.

2. Open a dedicated savings account

Next, open a dedicated savings account for your safety net. Keeping this money separate will help you resist spending it until you truly need it. Look for an account that offers as high interest as possible and where you don't have to pay any fees to manage the account, and this helps your savings grow while it sits there. The best way to save is to automate the process. Set up a regular transfer from your main account to your savings account, even if it's just a tiny amount. It may not seem like much initially, but it can significantly impact over time.

3. Peace of mind: the benefits of being prepared

It's also vital to use this money only for genuine emergencies. It can be tempting to tap into it for other expenses but remember this is your safety net for when life throws you a curveball. Don't be discouraged if it takes time to build your safety net. The key is to stay committed. Even a small amount saved can make a big difference in an emergency. Once you have your safety net in place, you'll feel more secure knowing you're prepared for whatever comes your way, giving you peace of mind.

Further support

For further money-related support, contact Student Funding Support by email (studentfunding@warwick.ac.uk), phone (024 7615 0096), or come to the Wellbeing Reception in Senate House (10 am-3 pm Monday-Friday).

Student cookbook

Remember, one of the best ways you can save money as a student is to find some easy and cheap recipes. Our Student Money Assistants have done all the hard work for you and have tried and tested some recipes for you! We will be adding to the Student Cookbook throughout the year so keep checking back!