As the economic strain ratchets up, what level of cash savings should you aim to keep to hand?
Building up a savings buffer is important to provide a resource should you lose your job, become ill, split from a partner, or simply need some reserves to dip into with bills rising far faster than earnings.
Many families do not have this, with The Resolution Foundation estimating 1.3m families have no savings at all. Research by Moneyfarm suggests that one in three people has less than £1,500 saved. This can leave them struggling to pay unexpected bills, and relying on expensive credit cards, overdrafts or loans instead.
Building a decent savings pot can underpin financial resilience, but the question remains, how much should you be looking to keep aside?
Financial experts say families need to think beyond a one-off large MOT bill, or boiler replacement and look to cover at least three or potentially up to six months of essential bills.
Saving enough to cover six months of mortgage repayments, energy and food bills may seem like a tall order, particularly when these costs are skyrocketing. For households with two earners, three months may be a more realistic target.
Look for ways to increase savings
Boosting savings at the current time is not easy, with higher bills taking a greater slice of wages. But building this buffer should be a longer-term project.
It could also be worth considering insurance policies, such as income protection, which pay out an income to cover essential bills in case of illness. These are not low cost policies, but those that already have them should consider maintaining cover, as any short-term saving on premiums could remove a valuable longer term benefit in difficult circumstances.
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