A Fifth of Londoners Have no Rainy-Day Fund

Almost one fifth (18 per cent) of Londoners have no rainy-day fund, while 23 per cent would not be able to cope with the expense of a broken boiler.

Meanwhile, three quarters of Brits are worried about their current financial situation and two thirds worry about how they would cope if they lost their job.

In a new survey commissioned by Salary Finance, it was revealed that Londoners are in a worse financial situation than the rest of the country, with one in four admitting that they would struggle if they faced a long period of leave. Almost a quarter (24 per cent) said they would not be able to afford an unexpected car repair bill, while 21 per cent said that they could not afford a larger-than-average utility bill.

Furthermore, 18 per cent of Londoners have no emergency savings whatsoever, while 45 per cent have less than £1,000 in their rainy-day fund. Four per cent said that they had less than £100 to cover emergency expenses.

“For those that are already living payday to payday, the idea of something unexpected happening, such as a job loss or a large bill, can be a large source of stress,” said Asesh Sarkar, chief executive and co-founder of Salary Finance.

“Saving for a rainy-day fund is difficult for many people, if it wasn’t everyone would have one. However, it can really take some of the pressure off and help avoid high cost loans, especially if something does go wrong, and reduce your financial worries.”

Half of the Londoners polled for the Salary Finance survey sad that they have had to rely on their savings in the past to get them through a difficult period. These savings have lasted an average of 47 days.

However, the study found that most employed adults in the UK believe their savings would last around five weeks. Among Londoners, 10 per cent said that they would struggle to last a week without pay – twice the national average.

Kathryn Gaw

Kathryn Gaw is a financial journalist based in Belfast, Northern Ireland. She has been writing about personal finance and investment trends for more than a decade, and her work has been featured in the Financial Times, City A.M., the Press Association, and The Irish Independent, among many other publications.