Savings?

Thisisme_3

Hi, my husband is self employed and we currently have lots of debt which we are paying through a dmp. We could probably manage to pay a bit more than we are currently paying but I'm wondering whether we need to have at least one months wages in savings first as we don't have anything at the moment. I'm a stay at home mum at present so I have no income coming all (I am looking for work though). I'm worried what we would do if the car needed work or my husband had no work for a week or two (this is unlikely but not impossible of course)

Thank you.

sistafromanothermista

:wave:
It's always a good idea to have a few savings pots on the go, just in case of emergencies. For example, what if your washing machine broke down or MOT was due?

I wish i could say we have 1 months wages in savings! but we don't we have around £700 for any emergency which might crop up.

Thisisme_3

sistafromanothermista wrote: »

:wave:
It's always a good idea to have a few savings pots on the go, just in case of emergencies. For example, what if your washing machine broke down or MOT was due?

I wish i could say we have 1 months wages in savings! but we don't we have around £700 for any emergency which might crop up.

Thanks . I was thinking I might aim to put around £1000 in a savings account before I start paying more of our debt. Just because I know the car needs new tyres soon and to be honest I think we probably should be building something up for a new boiler as its 12 years old and def on its way out!

sistafromanothermista

I would definitely say that's a good plan
You never know what's round the corner....


Good luck!!!

tpl

Yes, i thk thats a gd idea too. Something i need to do too ( somehow!) as my boiler is 15 yrs old nxt year : ( Not sure how im going to save tho!

If u claim certain benefits, one of the companies (british gas) i thk are doing a free boiler offer!! Which is great if u claim benefits, but not so good for those who dont claim, but work, struggle and have no extra money after living costs; ho hum. Look into it if u qualify tho.

raq

my hubby is also self employed and no work for the last 2 week as he has been waiting on an insurance job to go through.

Really difficult as all our savings went on our house last year when we had major work done, went way over as it always do.

I am also a stay at home mum and if it wasn,t for our mother in law we don,t know what we would have done. It was only this morning I said to my hubby that this must be the worst we have ever been in and YES once work does pick up we are also looking into saving at least a months wages to put to one side. Love to do it now, but we have £80 for food on tuesday and then my money goes in on thursday which covers a couple of direct debits. Doesn,t sound so bad typing it now.

RAS

Thisisme wrote: »

. I'm worried what we would do if the car needed work or my husband had no work for a week or two (this is unlikely but not impossible of course).

Hi this is not savings. This is effective budgetting.

How much did the car tax, maintenance, insurance cost last year? Divide by 12 and "save" that amount every month, not least because it is cheaper to pay tax and insurance as one lump sum that in installments. Same applies to house and contents insurance.

Ditto Christmas and birthdays; you know when they happen but unless you budget for them, they become assocated with unpleasant belt tightening.

And if your hubbie is SE, this is even more importnat.

I assume you also "save" enough to cover his tax bill?

tpl

RAS wrote: »

Hi this is not savings. This is effective budgetting.

How much did the car tax, maintenance, insurance cost last year? Divide by 12 and "save" that amount every month, not least because it is cheaper to pay tax and insurance as one lump sum that in installments. Same applies to house and contents insurance.

Ditto Christmas and birthdays; you know when they happen but unless you budget for them, they become assocated with unpleasant belt tightening.

And if your hubbie is SE, this is even more importnat.

I assume you also "save" enough to cover his tax bill?

Hi, (I know this msge wasn't for me, so sorry for hijacking), but yes I guess those 'smaller' things are about budgeting....but what about 'big' things like new gas boilers and cars?? how do you budget for that, if you have about £60 left each month after budgeting for everything (not savings or holidays!).? I also realised (now spring is coming) I didn't include gardening' in my budget...I need to powerwash the patio, paint the fences, and buy plants/compost to make it look nice, I also need garden table and chairs, as there is nowhere to sit. And a new car and gas boiler! Holidays don't even come into it! I don't know, it all seems impossible really.....on just one average full-time income.

RAS

Do you actually need to do some of those things, or need some of those things.

Try freegle and freecycle.

But if possible budget to replace one major household item every year (washing machine etc).

When we were kids the mantra was cut your clothes according to your cloth. I was taught to do that literally and metaphorically. I have never bought anything for which I did not have the cash, even if I used a credit card for other reasons.

But I started here with a bed, an old cooker, a microwave (present), two chairs and a trolley I shifted out of a skip. I had enough money to buy a table from IKEA.

Thisisme_3

RAS wrote: »

Hi this is not savings. This is effective budgetting.

How much did the car tax, maintenance, insurance cost last year? Divide by 12 and "save" that amount every month, not least because it is cheaper to pay tax and insurance as one lump sum that in installments. Same applies to house and contents insurance.

Ditto Christmas and birthdays; you know when they happen but unless you budget for them, they become assocated with unpleasant belt tightening.

And if your hubbie is SE, this is even more importnat.

I assume you also "save" enough to cover his tax bill?

Just about to put the kids to bed so I don't have time for a long reply at the mo but just re the tax bill he actually subcontracts so as a general rule he receives a tax rebate each year

tpl

RAS wrote: »

Do you actually need to do some of those things, or need some of those things.

Try freegle and freecycle.

But if possible budget to replace one major household item every year (washing machine etc).

When we were kids the mantra was cut your clothes according to your cloth. I was taught to do that literally and metaphorically. I have never bought anything for which I did not have the cash, even if I used a credit card for other reasons.

But I started here with a bed, an old cooker, a microwave (present), two chairs and a trolley I shifted out of a skip. I had enough money to buy a table from IKEA.

Need? well, i was told by gas boiler service man that I should start thinking about replacing my boiler - next year tho, as its 15 years old. I'm waiting for my car's MOT in June (13 year old car) with quite a lot wrong with it, and not sure it will pass MOT this year (that's what I was 'warned' last year by mechanics). I intend to 'run it into the ground' if I can. And yes, I need a car for work - it's in my contract - and, work don't pay for anything except mileage. I should be able to manage with garden stuff...if I budget well. I have always bought second hand furniture. In the past I've bought white goods on HP (fridge/freezer and washing machine). I also need to replace the wash basin in my bathroom as it has a long crack in it. It's hard to 'save' for these bigger things, when you don't really have anything to save with!! i don't know - that's where loans and credit cards come in I guess. Though I don't have a credit card, and won't be taking out any more loans (as I got into debt that way)....so if I can't afford it, I won't be able to have it!! I used to 'borrow' to buy these bigger things, but now I'm not borrowing anymore, I'm not sure how to manage it. I could possibly budget for 'smaller' appliances (eg. washing machines, fridge). But not along with the really big things like.......gas boilers and cars which are much more expensive....it seems impossible, so any suggestions welcome!