Easy ways to build a cash buffer

4 min Read Published: 14 Jun 2021

It’s not about how much you save; it’s about the act of saving.

It’s crucial to start building a cash buffer, also known as an ‘Emergency Fund’.

Why is an Emergency Fund important?

It helps smooth out your budget. If unexpected expenses come up, they can create havoc with your budget.

If you have an Emergency Fund, you can pay the bill immediately and replenish the fund over time.

What you need to do

Start saving in 2 minutes - hassle-free saving with the option to invest


  1. Visit Plum* and either download the app or sign up using messenger.
  2. Once signed up, Plum's smart algorithm will analyse your spending within your current account and start saving money automatically. Plum will take your income and outgoings into consideration and analyse your spending patterns in order to calculate an affordable amount to save. Transfers are made every 4 or 5 days into a Plum savings account.
  3. You also have the option of depositing your savings into an investment ISA. Plum allows you to invest in either shares, or a mix of shares and bonds, and you can choose a risk-level that suits you. Remember though that investments can go down as well as up.
  4. When you have reached your desired savings goal or if you need quick access to the money you have saved, you can withdraw it at any time by requesting a withdrawal in the messenger app.

Is Plum safe?

Plum* is an appointed representative of Resolution Compliance Limited and is FCA registered.

The money you save with Plum is held in a Barclays instant-access savings account and is protected by the Financial Services Compensation Scheme (FSCS) if your money is held in easy-access savings pockets or if you choose to invest. However, it is important to note that money held in a Plum instant-access primary account is not protected by the Financial Services Compensation Scheme (FSCS).

Plum maintains that "When it comes to money, there's no room for compromise" and that they have "built Plum from the ground up with your security and privacy in mind". They have a customer support team that you can speak to from Monday to Saturday, and they never share your data with any other parties without your consent.


The Plum* savings app is a hassle-free way of saving small amounts of money that quickly add up. It has achieved an excellent rating via customer reviews on Trustpilot. Plum allows you to invest the money you save and so can be a good introduction into investing. For more information on what Plum has to offer, visit our independent review.

If you are seriously interested in investing, then you may prefer to look at our article "Best and cheapest investment ISAs for beginners".

The Theory

By building a cash buffer, you can prevent yourself suddenly slipping into debt as the Emergency Fund is available, where previously you might have resorted to a credit card to pay an unexpected bill.