have you got a 'cushion' of cash behind you for 'just in case'

WelshWoofer

This just got me thinking and I've just checked my finances. I am now debt free (happened this summer) and starting to build up a reserve for security's sake. I'm single and have no children but at almost 40 years old I should have something to fall back on!

I have £3500 in a savings account that can't be touched unless its a real emergency, £100 in a living room redecoration fund (aiming for at least £1000), just under £100 left in an account I'd saved towards Xmas (all presents now bought apart from one small one) and that's about it apart from the current account which is just used for day to day stuff.

I also have mortgage insurance and a critical illness cover thingy so hopefully if there was a need for it I'd be covered. The dog is insured too so there would only be an excess to pay if he became ill.

I'd like to get to £5000 in the emergency account and then start saving towards other things like a new car and a nice holiday. It really focuses you actually seeing things in black and white though doesn't it? I realise that I'm in a slightly better position than some but it still worries me that I could have been in an even better place if I had been more sensible over the years:o

ETA - I don't tend to keep any money in the house apart from what's in my purse - its too easy to dip into and just disappears. I get about £40 from the cashpoint each week and that's used for going out, extras (not groceries) and bits and pieces through the week

valk_scot

The day we paid off our mortgage we turned round and started putting the same amount into a couple of saving plans, Hubby's pension fund and an ISA. We've been living on one salary for 18 years now and it's not a huge one for two adults and two growing kids, trust me, but we don't belive in wasting it either. We don't have any debts apart from the credit card, which we pay off every month, and we save up for things from the monthly cash rather than dip into the main savings account. If you set up a direct debit to take any savings money out at the start of the month you'll miss it a lot less than at the end of the month, belive me. We've got two kids to get through university, our retirement and (hopefully) have enough to help the kids out a little when they set up on their own. So we've been planning and saving for this as well as the day to day. There's no way we're paying for weddings though, not for boy or girl!

So for these who say they have no savings at all, does that mean pension plans too? So how are folk going to manage when they retire? That's a far more likely event than the banks going t-ts up, after all.

jools27_2

Having spent too many years when the kids were wee really struggling for money, over the last few years ive had a promotion, they have grown up and this year i inherited a great chunk of money! We could have cleared the mortgage, but chose to do some much needed work to the kitchen and bathroom, bought a brand new car, and have about £25k invested in accounts, so when the endowment mortgage is up we will not need to worry if the shortfall is more than we expect. Now all we need is for the govt to leave my nhs pension alone and we are good...tongue in cheek!
Till then, I will carry on scanning the boards here and finding bargains, old habits die hard and if I can save a bob or 2 towards the much earned holidays I am a happy bunny!

mardatha

Re the recent prob with HSBC cashlines and cards, read this ! -

QUOTE
Some customers have been telling the BBC News website of the problems they faced when the system went down.
Andy Betts, from Luton, had to leave his shopping behind after his HSBC debit card failed.
"It is my sister's 21st birthday and I went out to buy food and decorations for a party that my family is arranging for her," he said.
"When I went to the cash till, my HSBC debit card was declined, and I noticed that other customers had similar problems with their cards.
"I had to leave £250 worth of shopping behind."
UNQUOTE

This is why it pays to have some cash

lil_me

Used to but after an ex friend wiped that out earlier this year now I feel rather uncomfortable. No savings. Don't own our home etc. Myself and my partner have relatives who hate banks. One of mine had a fit when her curtains were almost washed when she was in hospital as it was sewn in the lining. My partners elderly aunt has warned her beneficiaries not to get house clearance in and to expect to need to redecorate as it's hidden in Walls - I'm guessing some much out of date monies will be there too.

katieowl_2

mardatha wrote: »

Re the recent prob with HSBC cashlines and cards, read this ! -

QUOTE
Some customers have been telling the BBC News website of the problems they faced when the system went down.
Andy Betts, from Luton, had to leave his shopping behind after his HSBC debit card failed.
"It is my sister's 21st birthday and I went out to buy food and decorations for a party that my family is arranging for her," he said.
"When I went to the cash till, my HSBC debit card was declined, and I noticed that other customers had similar problems with their cards.
"I had to leave £250 worth of shopping behind."
UNQUOTE


This is why it pays to have some cash

Indeed, or a second card, even if you can just draw some cash out with (with another bank)

Kate

dandy-candy

About a year ago I did worry about the banks collapsing and cash points shutting down, and kept £1k in cas at home. Since then I constantly dipped into it for odds and ends and have blown the lot, so don't keep cash at home now!
Tbh if we did get a collapse like that in Argentina a few years ago or Germany after WW1, the prices would sky rocket so unless you had huge amounts of cash I would say storing food would be better. Also if supply lines of food have problems then no amount of cash will help you out!

aliasojo

Jojo_the_Tightfisted wrote: »

I have the first fiver I was ever paid as a musician. The sky would have to fall in and the horsemen of the apocalyse would have to be thundering up the main road before that came out of its frame.

I have a £20 note in a frame. A friend gave it to me years ago, she won a few quid in a small local competition and put £20 of it in a 'break in case of emergency' type frame.

No matter how skint I've been, I have never once been tempted to spend it. She was amazed to find out that it was still the same original note and hadn't been spent and replaced.

Apart from that, I don't tend to keep money in the house. If I have it, I tend to be tempted to spend it on trivial 'bits' and before you know it, it's gone.

justjohn

lol ...think we are a bit OTT. lol
we have approx 2 months wages in house and enough money too clear our debt and mortgage.
To top that off we have just cleared a supermarket of liquidated stock, so have enough food to last until next year.(long life products)

We are cutting down and saving now before we are forced too.

penguin83

We have a tub stashed away in the house full of £2 coins that we have been saving since we started living together (9 years ago) and have never counted. There must be a fair bit in it though.

I think it stems from when I was younger and living at home and my Mum always told me to keep £20.00 in my knicker drawer so I knew I could always get home (ie if I was out in town and lost my bag/purse I could get a taxi and pay them when I got home).

When we first started living together we were completely skint and I hate going out and not having money on me even if it just a fiver. xx