With household bills rising ever higher, managing a tight budget can be tough. What often throws us off course is the unexpected, but regular saving can help. 

Name your savings goal

It’s not easy juggling a tight budget whatever your family circumstances are. So it’s not surprising that it can be easy to dip into debt sometimes. For example, paying for Christmas, when the washing machine breaks down or the car bill comes to more than expected.

But borrowing makes whatever we buy even more expensive, while repaying credit cards and loans just adds to the strain on the budget. A good way to help with unexpected expenses is to budget for them by putting aside some money each month to build up an emergency fund.

Work out how much to save each month

If you’re not sure how much you can afford to save then start small – maybe just putting your change each week into a jar. If that works, try setting aside a bit more on a regular basis.

Be realistic – it’s better to commit to a smaller sum you’re confident you can manage than a bigger amount that you give up on. Set yourself a target: say an emergency fund of £200.

Once you’ve reached that, raise the bar and go for a bigger sum. When an emergency does crop up, use the emergency pot, but then carry on saving to build it up again. It's a good idea to try and have at least three months’ worth of household expenses as an emergency fund.

Get started with your savings

While it’s ok to start saving cash in a jar, for security it might be a good idea to consider setting up a savings account.

Doing so will not only keep the money safe, for emergencies, and reduce your temptation to spend it on a whim, but you could also earn a small amount of interest.

Comparison websites are a good starting point for anyone trying to find a savings account tailored to their needs. Comparison websites won’t all give you the same results, so it might be a good idea to use more than one site before deciding.

It’s also important to do some research into the type of product and features you need before making a purchase or changing provider.

Watch your savings grow

Check your progress every few months. Review your savings account at least once a year to check you’re getting the best rate of interest.

Make sure you use your yearly cash ISA allowance so that you don’t pay tax unnecessarily. Many ISAs tempt you with a bonus for the first few months or year but then fall back to dismal rates.

What to do

• Budget for the unexpected – it always happens.
• Open a savings account if you don’t already have one – go online or pop into your bank or building society.

Why not use MoneyHelper’s Budget Planner or Savings Planner to help review your finances and begin saving today!