Savings and owning your own home

**Amy**

I was just wondering what the general thoughts are regarding savings when you own your own home (or have a mortgage at least!).

I was told recently that I should look to have at least £3K in savings, for the "just in case" scenarios that could happen (boiler breakdowns etc.).

What do you all think?

Thanks

Amy

going2die_rich

I agree, you should have savings on top of your mortgage. After all, money in the mortgage is tied up and like you say, if your boiler was to break down you need cash, not an offer for a percentage of your home as payment.

I'd personally say £5k savings, £2k of which is available within a day or so and the remaining £3k within a week. As well as having a credit card with a good sized limit on it.

~Beanie~

I would love to have savings or a contingency fund for such emergencies but it isn't going to happen any time soon . Any spare cash I get goes towards reducing my debts!

**Amy**

Thanks GTDR, thats a good point.

x

pinkshoes

I'd say you should have enough money to pay your mortgage for AT LEAST 6 months should you lose your income for whatever reasons, preferably 12 months.

Also, you should then then have a spare £2000 for emergencies.

All this money can be kept in an ISA, so earning lots of nice interest on it!

**Amy**

Thats true Pinkshoes, i didnt think about not having an income (i have had that before, but thankfully found a job very quickly).

That adds more thought to it.

Thanks

Mutton_Geoff

If you have borrowing capability (ie credit cards/overdraft facility) then I wouldn't contemplate having any more than a months free cash until I had paid down my expensive debts first. There is no point earning 6% even in an ISA if you are carrying any credit card debts each month.

poppysarah

I'm a firm believer in having a stash of cash for emergencies.

Mozette

Every time I've built up a bit of cash, I've had an emergency, then it's back to square one!

Microstar_2

I can't believe people keep as little as a couple of thousand for emergencies, that's nothing these days. A boiler replacement or major engine/transmission failure on a car could cost £2-3lk. I wouldn't feel comfortable without at least £10k on instant access (enough to pay a straightforward private medical bill in the event of wife/children/self falling ill).

~Beanie~

Microstar wrote: »

I can't believe people keep as little as a couple of thousand for emergencies, that's nothing these days. A boiler replacement or major engine/transmission failure on a car could cost £2-3lk. I wouldn't feel comfortable without at least £10k on instant access (enough to pay a straightforward private medical bill in the event of wife/children/self falling ill).

That's all very well but I don't know many people who can afford to stash £10K away 'just in case'. Most of us have to rely on the good old NHS as private medical care is just not an option.