How much is enough?

rising_from_the_ashes

There are really 2 types:

1) to fund being out of work eg if you're made redundant - 3 months salary is generally used as a base figure but I have seen 6 months thrown around a lot more recently which is really down to the current climate and the fact it may take a lot longer to find work than it used to.

2) Everyday emergency fund for household appliances / car repairs etc

My emergency fund never gets very far (it's only recently been started) as it has been used several times already - new fridge/freezer at Christmas, unexpected vets bill (x 2 - 2 different pets), new tyres (had just started the car fund & didn't think I'd need these until later this year) etc.

I can only afford to stick £25 / month into it so it's going to take a while!

I have a separate fund for the car so shouldn't really be needed for that now that this is up and running.

ETA having it has meant I've not had to stick well over £1k on a cc or run up the OD to unmanageable levels tho.

IMHO the idea of just having a cc or OD to cover these would worry me as how on earth would I pay them back?

gizmo111

I think 2 months essential bills including groceries plus enough for car maint - 200 maybe and also a bit for house maint 500 maybe is a good figure to aim for - but it takes a while to get this amount and I find I'm constantly dipping into it anyhow. I have 5 online savers with halifax to seperate out what is what which is easy access and an ISA with Egg which I try my best to forget about.
When I get paid I put £300 in my groceries pot, £150 in my car pot - includes petrol, £100 in my slush fund which is haircuts birthdays takeaways etc - just lately been spent on funeral tributes and another coming up, £100 in holidays and £50 in family - which covers school trips etc. Anything that is left the day before payday goes into the EGG ISA - and I have put as little as a fiver in there, it is now at £996 - nowhere near what I would need to cover 2 months bills, but it is enough of a buffer that would give me time to arrange a mortgage holiday etc and is alos there should I need to do any house repairs etc.

determined_new_ms

Since getting df I have built up some savings and have several "pots". I have a fund for car repairs which I put £50pm in and I put £10 in for emergencies - this is pretty low as I used it last year. It currently sits at £60. I intend on continuing to contribute to it until it gets to £500.

In terms of redundancy I always figure i would just use my savings as a buffer until I found another job. Currently I have enough to last 7 months of expenses. While I was debt slaying there was never enough to put into an emergency fund and I just hoped for the best & tried to raise additional funds when something came up that was out of the ordinary

eyeopener2

BlushingRose wrote: »

We'd love to have an emergency fund but we never have enough money available to build one up.

With you on that BR!

Learning2Budget

Wiped our fund out on the car. Time to start rebuilding. I like to try n have enough for a mortgage payment. Any extra is a bonus.x

theoretica

rising_from_the_ashes wrote: »

IMHO the idea of just having a cc or OD to cover these would worry me as how on earth would I pay them back?

Earmarking the cc as 'emergency fund' makes sense when you are paying off debt. Have less debt rather than having both debt and savings unless the debt is charging less interest than the savings are paying.

but seems silly to be trying to save and having too much languishing when there is debt to be paid!

Listerbelle

We feel most comfortable with a figure equal to at least six months worth of expenses (mortgages, car repairs, living expenses).

Through some frugal decisions, and a crazy rumour about my husband being headhunted leading to a huge pay-rise two years ago, we have easy access to approximately 18 months worth of expenses. We are both risk adverse and in the past have both lost jobs at very short notice.

Listerbelle

theoretica wrote: »

Earmarking the cc as 'emergency fund' makes sense when you are paying off debt. Have less debt rather than having both debt and savings unless the debt is charging less interest than the savings are paying.

Yes, this is a good point. We also have a small amount of cash in the house, enough for some petrol and groceries.

paulwellerfan

i have a few grand kept aside for an emergency.
( but its in an ISA so it would have to be a real emergency in order for me to cash it in)

Time_to_face_the_music

Our emergency fund will come after our debt is paid off, at present all our efforts go towards our DFD.

We probably have enough money in our £2 and 5p piggybanks for a week's worth of shopping or a tankful, again one week's worth, of diesel.