3-6 months salary untouched

katejo

Just curious to know how many people do follow this advice (assuming no debts to pay off other than the mortgage). I hear this recommendation over and over and over again but who takes any notice, particularly at a time when salaries are frozen and interest on savings is so poor.
I currently have just short of 3 months take home pay.

JoeCrystal

I got an entire year's worth of basic income saved up as E Fund. However, I keep three months in my second current account and the rest of the fund in Index-Linked Saving Certs. It does give me a massive sense of peace, knowing I got a year's worth of income as Emergency Fund.

To be honest, in case of an Emergency Fund, interest is a lesser concern. I just focus on maintaining the year's worth.

Cheers,
Joe

atush

I have more than 6 months spending in easy access cash (or cash with a short term release date). 100% of my cash isn't available today, but would be within say 3 months or so. I also have empty CCs with approx 3 months spending in open credit if the cr*p really hit the fan.

Yes, loads hear us say it, but don't do it. And then come a cropper (like the guy who trades with his emergency cash, made a buy, cancelled it as he had an emergency, then couldn't get it back for 3 days).

Don't expect a lot of peeps to admit they don't do it lol.

katejo

I also have cleared credit cards and a good sick pay scheme at work . However I could never save a year's pay . I would be dead long before I got there . Better to focus on clearing the rest of the mortgage

Torry_Quine

katejo wrote: »

Just curious to know how many people do follow this advice (assuming no debts to pay off other than the mortgage). I hear this recommendation over and over and over again but who takes any notice, particularly at a time when salaries are frozen and interest on savings is so poor.
I currently have just short of 3 months take home pay.

Have always had a lot more than 6 months money saved. It makes sense and it should be a priority.

atush

Not at the expense of pensions and long term equity saving.

nearlyrich

I have cash in an easy access account which doesn't earn much interest I keep looking for a good account to move it to... I already have an S & S ISA for this year (and for several years ) my outgoings are pretty low so my easy to access emergency funds would probably last me for well over a year if I cancelled my payment into my ISA.

katejo

atush wrote: »

Not at the expense of pensions and long term equity saving.

I also have an end salary pension into which I also pay AVC 's. I can't do that as well as save 6 months pay.

nearlyrich

atush wrote: »

Not at the expense of pensions and long term equity saving.

I pay 10% of my salary into my company scheme by salary sacrifice and the company pays 6%...I have ISAs and unit trusts etc and mortgage free home

aliasojo

nearlyrich wrote: »

I pay 10% of my salary into my company scheme by salary sacrifice and the company pays 6%...I have ISAs and unit trusts etc and mortgage free home

Nobody lkes a show off.:p:D

I have a green ceramic pig with some loose change. :rotfl:

Doshwaster

When I got made redundant 12 years ago I didn't have a penny in savings. That experience scared me so much that I made it an immediate priority to have 6 months takehome money in accessible savings. Given some belt-tightening on spending I could live for 9-12 months on that.