Irregular income, no employer sick pay, and responsibility for your own tax bills make cash planning more important when you work for yourself. Yet many people have little to fall back on. The Financial Conduct Authority (FCA) reports that one in 10 UK adults has no cash savings, and a further 21% have less than £1,000 available for emergencies. In its 2024 Financial Lives survey, the FCA also found that 24% of adults (around 13.1 million people) had low financial resilience.
This guide sets out a practical framework for building, protecting and optimising a savings plan and building your financial resilience.
A resilient savings plan means you can take time off when you are ill, manage tax bills without stress and invest for the future on your terms. Start with the cash reserve, automate transfers, make the most of ISAs and pensions, and review quarterly. If your circumstances change – income rising into a new tax band, a new mortgage or family plans – update your plan to stay on track.
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Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.