14 Million Brits Have Less Than £100 Saved - Here’s How to Change That
Aug 15, 2025
It’s a shocking reality: 14 million people in the UK have less than £100 in their bank accounts. For 6 million of these, it’s worse - they have no savings at all. This isn’t about poor decision-making; it’s about living without a financial buffer in a world where emergencies happen every week.
That’s why money experts like Nischa Shah talk about the Peace of Mind Fund; a one-month emergency safety net to cover the essentials. No, it’s not as exciting as a new car or holiday, but it might be the thing that stops a broken boiler from turning into credit card debt.
Here’s how to start yours today.
Step 1: Work Out Your Essentials
List your must-pay expenses for one month: rent/mortgage, bills, food, travel.
If it’s £1,200, that’s your goal. You can also use apps like Cheddar that will sum your
Step 2: Start Small, Stay Consistent
Even £5 a week matters. The key is to start now, not “when things improve.” Progress is better than perfection.
Step 3: Automate It
Set up a standing order the day after payday. Treat it like a bill you can’t skip because future you is depending on it 🙏.
Step 4: Boost With 'Found' Money
Redirect “extra” cash, like cashback from Cheddar gift cards, selling unused stuff and birthday money, straight into the fund.
Step 5: Keep It Separate
Use a dedicated savings account, bank “pot” or build cashback balances in apps so you’re not tempted to dip in for non-emergencies.
Why One Month Works
- It’s realistic and achievable for most people
- It covers most unexpected costs without debt
- It gives you breathing space to make good decisions
How long will it take
- £100/month = 1 year to goal
- £250/month = 5 months to goal
- £20/week = ~14 months to goal
The Cheddar Boost
Cheddar can help you track your spending, spot where you can cut back, and earn cashback on essentials, giving your fund a steady lift without changing your budget. Download and build an emergency cashback balance 👉 here 👈
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Disclaimer: This article is for general information purposes only and does not constitute financial advice. You should not rely solely on this information to make financial decisions. Always do your own research or speak to a qualified financial adviser before making changes to your financial situation.
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14 Million Brits Have Less Than £100 Saved - Here’s How to Change That
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