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The Guardian - UK
The Guardian - UK
Business
Paul Lewis

I need £2,000 now! How to find the money for an unexpected disaster

A woman puts a dollar bill into a piggy bank, circa 1950s. According to the experts, everyone should have at least three months’ net pay saved for an emergency.
A woman puts a dollar bill into a piggy bank, circa 1950s. According to the experts, everyone should have at least three months’ net pay saved for an emergency. Photograph: H Armstrong Roberts/Getty Images

I won’t ask what the disaster was or if it could have been avoided! It is there and you need £2,000 to deal with it and you need it now!

First, do you have enough savings to cover it? And yes, I know that is your house deposit or your holiday fund but what rate of interest does it earn – 2%, 3%? And what rate will you pay on a loan if you take one out? A lot more than that, I can tell you. So spend that £2,000 out of your savings and then make a standing order to yourself for £200 a month and it will all be paid back and earning interest by next Christmas. Job done.

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