To save or not to save that is the question?

Robbda

Following something mentioned on any earlier thread...

What does everyone do?

I was thinking of putting £5 a way a week for emergencies..but i've seen people say that you shouldn't have savings as every little bit should go on debts

what does everyone else think?

rubydoiwannabee

Hi Robbda
I think it is essential, we move money to a different account regularly throughout the month so that we have money for car tax, mots, christmas, birthdays, DS school bus pass, childcare etc. This normally has a bit extra in because of the frequency we pay for these items and it really is a godsend for us.

I would say every penny over and above necessaties to your debt, but an emergency fund is an essential in MHO.

Best of luck

worrygirl

Robbda wrote: »

Following something mentioned on any earlier thread...

What does everyone do?

I was thinking of putting £5 a way a week for emergencies..but i've seen people say that you shouldn't have savings as every little bit should go on debts

what does everyone else think?

I am on a DMP I pay the monthly amount to payplan then I have a emergency account that i try to keep bult up to £200. Then i have an ISA that is my account for putting any left over monies and birthday money and credit card PPI claim money and bank charges money. when i have a decient amount in there i hope to offer my creditors an amount to clear the debt sooner.

Robbda

hmm

I'm def going to have an emergency fund i think i was thinking about it - maybe they ment savings for holidays and things...

turbulentfurball

I keep money in savings while paying off debt. That means if an emergency occurs, I can use those savings rather than putting it on a credit card. It might not make the most financial sense, but finance isn't just about the numbers; it's about human emotion! If it makes me feel better prepared to save some money whilst paying of debts, then I'll do it. I'll be more likely to succeed in my goals if I do what feels right for me.

rubydoiwannabee

Robbda wrote: »

hmm

I'm def going to have an emergency fund i think i was thinking about it - maybe they ment savings for holidays and things...

Go for it...
I think saving for luxuries like a plasma tv, new flash car, holiday etc. is advised against whilst paying off debt because if you had a reasonable sum in an account somewhere it would never be accrueing an interest amount as high as that you would be being charged on your debts, so a bit of a false economy.

embarrassed_about_my_debt

As above, having an amount for emergencies is fine. Personally i would build it up to an amount you are happy with say £500 then when you reach that everything goes towards your debt. When you need to use it go back to adding the same amount each week/month till its back upto the amount again (£500) and carry on like that. If that makes sense :rotfl:

Piquant_2

I totalled all my annual spends such as insurances, breakdown cover, car costs, Christmas, birthdays etc. Divide by 12 and transfer that amount into another account. This way I have an emergency float and money to cover the annual essentials. I don't consider it saving, more trying to manage my money!

Piq x

taplady

embarrassed_about_my_debt wrote: »

As above, having an amount for emergencies is fine. Personally i would build it up to an amount you are happy with say £500 then when you reach that everything goes towards your debt. When you need to use it go back to adding the same amount each week/month till its back upto the amount again (£500) and carry on like that. If that makes sense :rotfl:

I'd say this is a very good idea!:T we do a similar thing and try and put some away for emergencies. It is nice knowing it is there should we need it.
It is for genuine emergencies and not for luxuries.

Robbda

Embarrased about my debt - what a fab idea thats what i'm going to do! and £500 sounds like a good amount

I'm going add that to my top tips post if you don't mind?

As always thanks people

poppy_f1

turbulentfurball wrote: »

I keep money in savings while paying off debt. That means if an emergency occurs, I can use those savings rather than putting it on a credit card. It might not make the most financial sense, but finance isn't just about the numbers; it's about human emotion! If it makes me feel better prepared to save some money whilst paying of debts, then I'll do it. I'll be more likely to succeed in my goals if I do what feels right for me.

i do something similar, when i get paid i stick some money say £50 into a savings account, if i dont need it by the end of the month i either pay it to a card or stick it in my isa