Lesson 2: Building Your Financial Safety Net - Checklist

Emergency Fund Setup

Calculate your essential monthly expenses

Determine your target emergency fund size (3-6+ months of expenses)

Open a separate, easily accessible savings account

Name your account specifically to discourage casual withdrawals

Set up automatic transfers to your emergency fund

Identify quick ways to generate £1,000 (selling items, side gigs)

Temporarily reduce contributions to non-matched retirement accounts

Consider a “no-spend” challenge for non-essentials

Track progress visually to maintain motivation

Celebrate reaching this first milestone

Create a timeline with specific targets (e.g., 1 month, 3 months, 6 months)

Allocate a percentage of each paycheck to your emergency fund

Redirect windfalls (tax refunds, bonuses, gifts) to accelerate progress

Review and renegotiate bills annually, saving the difference

Increase contributions whenever income increases

Create a decision tree for what constitutes a true emergency

Implement a 72-hour rule for non-urgent withdrawals

Keep fund at a different bank from everyday accounts

Set up account alerts for any withdrawals

Establish a plan for rebuilding the fund after legitimate use