Make every month a good money month

A survey by Fool.co.uk shows that for the cost of a daily sandwich we can turn every month into a good month for our personal finances.

According to 1,500 Fool.co.uk readers, one in seven people reckon that their finances are healthy every month of the year. These fortunate people appear untroubled by unexpected events, or even the high cost of Christmas that seems to hurt five out of six people.

The survey confirmed that December and January are two of the worst months of the year for personal finances. However, 14% of those that took part are unfazed by anything that happens throughout the year. They are able to cope with the occasional bombshell that can blow even the best planned budgets off course. But it is men who come out on top - twice as many men boast that they have no bad money months.

The survey also revealed that seven out of ten people who say that every month is a good money month manage to put aside 5% of their salaries every month for emergencies.

David Kuo, Head of Personal Finance at Fool.co.uk, says: “Unexpected events can stretch even the best-intentioned budget to breaking point. Consequently, it is vital for people to provide adequate slack in their budgets.

“In most instances, a 5% emergency provision is all it takes to cover unexpected events. On average, this simply means putting aside £3.19 a day, which is less than the cost of an up-market lunchtime sandwich.”

David adds: “The importance of budgeting cannot be emphasised enough - it can go a long way to smooth out the peaks and troughs that invariably happen in our monthly spending.

“But more important than budgeting is making sure that you have set aside some money for emergencies. In most cases, just putting away 5p in every pound you earn can help turn every month into a good month for your personal finances.”