In today’s world, unexpected costs can pop up at any time – a car repair, a broken appliance, or an urgent bill. That’s why many money experts recommend building a £1,000 contingency fund: a simple financial safety net that can protect you from stress and high-interest debt.
Inspired by popular financial education trends, we want to share practical tips to help you build your own safety net – and explain how your Right Way Credit Union account can make saving easier.
Why a £1,000 Contingency Fund Matters
Having savings set aside means:
- You’re less likely to rely on credit or overdrafts.
- Emergencies feel manageable, not overwhelming.
- You gain confidence and control over your finances.
And the good news? You don’t need £1,000 overnight – small, consistent steps make a big difference.
Simple Tips to Help You Save
Start Small (and Make It Automatic)
You don’t need to save huge amounts straight away. Try:
- £5 or £10 a week
- Rounding up spare change
- Setting up a standing order into your Right Way Credit Union account
Consistency is more important than size.
Treat Savings Like a Bill
When your salary arrives, pay yourself first.
By moving money into your Right Way Credit Union account early, it becomes harder to spend impulsively and easier to stay committed to your goals, or if you’re a payroll partner organisation – you can save money directly from your salary.
Separate Spending and Saving
Keeping your savings in your Credit Union account creates a helpful barrier.
When money is harder to access, you’re less likely to dip into it for non-essential spending this helps your savings grow steadily.
Give Your Savings a Purpose
Instead of thinking “I’m just saving,” try:
- “This is my emergency fund.”
- “My 2026 Holiday Goal”
- “My Summer Festival Ticket”
- “This is my peace-of-mind money.”
A clear goal makes saving feel meaningful.
Things to Be Careful Of
Buy Now, Pay Later (BNPL)
BNPL services can be useful in genuine emergencies – but using them for everyday purchases like takeaways, clothes, or gadgets can quietly build up debt.
Ask yourself:
- Would I still buy this if I had to pay upfront?
- Is this a want or a need?
Impulse Spending
Small purchases add up quickly. Try a 24-hour rule for non-essential buys – you might be surprised how often you change your mind.
Relying on Credit for Everyday Costs
If credit becomes your go-to solution, it can trap you in a cycle that’s hard to break. Building even a small savings buffer can reduce this risk.
How We’re Helping You Save
At Right Way Credit Union, we’re here to support smarter saving:
- A safe place to build your contingency fund
- Simple ways to save regularly
- A system that makes it easier to keep money aside and harder to spend it on impulse
Every pound saved is a step closer to financial security.
Start today.
Your future self will thank you.