We asked our personal finance expert, Abigail Foster, to share her top tips on how to build a financial safety net and feel more prepared when unexpected bills hit.
Nearly seven in 10 people say they have been caught off-guard by an unexpected bill which shows that surprise costs are a normal part of life. Although they can be tricky to deal with in the moment, with a bit of planning they don’t have to derail your finances completely.
Life is unpredictable, and no matter how organised you are, these moments are just part of the deal. Cars break down, phones stop working, boilers fail or unexpected events happen on your holiday. The good news is, you can help to make these moments feel less stressful with a little planning - and it’s never too late to start building a financial safety net that works for you.
Here are a few simple ways to start putting that into practice:
Start with micro-wins
If you’re in a financial position to do so, putting even £5-£10 a week into an “unexpected expenses” pot adds up. The goal is to create some breathing space, where even a small buffer can help make a situation feel more manageable rather than overwhelming.
Make it frictionless
Don’t rely on willpower to save money, rely on systems. Set up a standing order so the money goes straight into your safety net fund on payday. When you automate the habit, the money is out of sight and out of mind, but your protection is constantly growing in the background.
Distinguish your sinking funds
Track the bills that catch you out and identify the patterns. If you know the car needs an MOT, or your pet needs a routine checkup, these aren’t actual emergencies. They are predictable, irregular costs, also known as sinking funds. By separating these from your “true” emergency pot, you can budget with much higher accuracy.
Compare the Market can help you keep track of regular household and insurance costs in one place. With services like AutoSergei, you can be reminded when policies like home or car insurance are due for renewal, so you can plan ahead, compare options early, and avoid last-minute price increases or rushed decisions.
Use layers of protection
Savings are your first line of defence, but insurance and warranties are your backup. I like to think of insurance as helping to spread the risk. Having the right insurance policy for your home, vehicle, pet, or holiday means you aren’t relying on one cash pot and are protecting your hard-earned savings from being lost due to emergencies or unexpected events.
Audit your spending
If you receive a refund, cancel a subscription, or save money when switching a household bill to a new supplier, redirect that “extra” income to your safety net. You aren’t necessarily spending less, you’re simply reallocating your money, so it works harder for your future self.
Keep it flexible
As your life changes, your budget should too. Starting a new job, moving house, or growing your family might mean you need to adjust your safety net requirements. Review your pots regularly to ensure your layers of protection still align with your current responsibilities.
Ultimately, financial wellbeing is about confidence, not perfection. Even a small pot can give you peace of mind and stop a surprise bill from derailing your whole month. The key is consistency, small steps, and knowing that you have a plan if life throws something unexpected your way.
If you haven’t already, start today. Even just setting aside a small amount can make a big difference over time.
Looking for something else?
Allie has spent her career helping people quickly understand complicated topics, to help them save money and focus on what matters. With almost 10 years’ experience writing, leading and managing content, she is an expert in personal finance and insurance products.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Abigail Foster is a personal finance expert with a background in accountancy, media and financial education. A Chartered Accountant and founder of Elent, she is known for explaining complex money topics in a clear and practical way. Abigail is the author of The Money Manual and a regular voice across ITV’s This Morning, LBC and Sky News.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
What our expert says...
Many of us are left figuring money out as we go, so it’s no surprise unexpected costs can feel overwhelming when they come along. Taking time to write your finances down, spot spending patterns, build a small emergency fund and compare costs can all help things feel more manageable. Talking openly with friends and family can help too, whether that’s swapping tips, sharing experiences or simply feeling less alone in it all.