Legal & General’s MoneyMood survey says 12 million households are already struggling to make ends meet, with 45% worried about covering their household bills and 57% dipping into their savings to cover the mortgage payments. Unfortunately, many more could now find themselves struggling to maintain their current standard of living for themselves and their families, particularly if the rate of inflation continues to rise with higher prices for basic home essentials such as food, clothing, petrol and energy.
Encouragingly, the survey did also highlight 32% of us are managing to put some money aside in case they do lose their job. But that does possibly mean that for two thirds of us losing a job or being unable to work due to illness or injury could quickly result in serious financial difficulties.
The general recommendation is that we should have in savings an amount that is the equivalent of at least three months of our outgoings and expenses to fall back on in case of an emergency. But when it is extremely difficult to just manage the current household budget, putting any money aside to have that financial cushion to fall back may seem impossible. Yet, the cost of arranging some insurance cover that could really help to ease some of the financial pressures is available for as little as £1 day.