3-6 months salary untouched

tiger_eyes

I could probably live for six months plus on my current savings, but I'm keen to pay off my postgraduate loan early, so still saving.

latecomer

FatherAbraham wrote: »

I've got over a year's worth of gross income saved. Actually, that's far too much,

We probably have a years worth of combined net income mostly in cash ISAs and a little in savings. About 50% of the ISAs are instant access.

I'm building up to moving at least some of it into a S&S ISA. We recently paid down a reasonable chunk of our mortgage using cash savings.

We dont spend a huge amount on things other than food and bills, and although we can afford pretty much anything we would want - we are both careful with our money and dont need (want) many luxuries.

HiToAll

probably have somewhere in the region of 2 years salary in savings combined, but like others have said if we got rid of essentials probably more like 3 years. Earmarked for a new house to take our LTV down and so probably have only 1 year sooner or later, but more than enough I would say if just based on essentials.

bjaich

I have over a year’s worth of savings in Cash ISAs, but then I am very conservative when it comes to money. I would always recommend to anyone to pay off the mortgage as soon as they possibly can, of course ensuring you have enough cash reserves to cover you for 6 month should you be unfortunate and lose your job.
I have paid off my mortgage over 15 years go and bought this house 3 years ago with the proceed of the last house and money saved. In my opinion nothing gives you a better sense of financial security then owning your own house. I know may will disagree and think it is better to have the biggest mortgage possible and make money with property, but thank god we are all different and have different priorities and needs.

FatherAbraham

bjaich wrote: »

I would always recommend to anyone to pay off the mortgage as soon as they possibly can

That's terrible advice.

My mortgage is a lifetime tracker at BoE base rate plus 0.45%. With credit at 0.95%, the best thing to do is pay it back as slowly as possible. Inflation will shrink the sum outstanding; in the meantime, I can do better, even after tax, by saving in bank deposits; if I want to gamble I can invest for the potential of even higher returns.

Paying off loans whose interest rate is sub-inflation is a crazy thing to do.

Of course, I have enough capital to pay the mortgage today if I wanted to; instead, I've just extended the remaining term by a third from 18 to 24 years on the same terms.

Warmest regards,
FA

New_Bride

I admire everyone here that has so much saved up, especially those that have a year or more worth of wages put away.

It’s taken me years to save up my 3 months’ worth of expenses (I achieved this only last month!), other things always took priority, such as house deposit, holidays, saving for other short-term things, wedding, etc, but I want to I have at least 6 months saved up. Peace of mind is a big thing and I want to achieve this sooner rather than later, but it’ll probably take me a long time.

I also want to increase my pension payments and explore other saving/investments options, so it’s important to work out your priorities. I’m going to have a good think about my finances after I get married.

One thing worth mentioning, I probably could save more. I am usually sensible about spending but I probably do spend money unnecessarily in certain aspects of my life. On the other hand, I also think that life is to be lived so it’s important people find the right balance.

My two pence anyway

Any

I think 12 months in easy access is far too much money just laying about doing nothing.
I am still saving for mine, but they are still in ISAs. Some cash, some S&I. Also, there is difference between months worth of wages and months worth of money needing to cover expenses to me.

I am striving for month worth of wages (which is roughly 2 of expenses) in cash ISA and the rest will go into S&I Isa.

Also I am trying to strive balance between long term savings (pension and S&I Isa), medium term (when for example one day I will want to move house, that would probably also be S&I Isa) and actually living... because what if I get run over by bus tomorrow and I have over £20k in pension at the age of 29 but haven't enjoyed anything?

FatherAbraham

katejo wrote: »

Ok I could save more if I had to but it would mean no holiday and no treats .

Treats and holidays are luxuries.

Having enough cash buffer to get through difficult times is a necessity.

You're putting luxuries before necessities. Not a great strategy.

Reward yourself with a treat once you've achieved the goal of having reasonable financial security. Not now whilst you're apparently at risk of going under within a matter of weeks should your personal economic climate change for the worse.

http://www.bbc.co.uk/consumer/22692730

Warmest regards,
FA

srcandas

All sensible stuff and good advice but just to amuse:

I went for a job interview in the 80s for an IT sales job. I felt somewhat underqualified but gave it my best shot.

I got the job and I eventually asked why I had been chosen. I was told of the final two I was more hungry. I liked expensive holidays, a fast car, etc. The other guy was careful and had declared that he was money savvy. As Cliff said "I want hungry salesman, not careful ones "

So stash away but if you want to be a salesman don't mention it :cool:

gadgetmind

We've currently got 2.5 years of essential spending as cash (and NS&I linkers) as we intend to use drawdown in retirement and need a decent cash buffer.