3-6 months salary untouched

katejo

FatherAbraham wrote: »

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

I think that I already do that more than many do. However i'm not prepared to live on bread and soup/drink water and go for years and years without any holiday or trip to the theatre only to find myself in about 3 years time with terminal cancer or chronic depression.
A few occasional small pleasures are not luxuries. I am not talking about an expensive 3 month tour round Australia but just something like a week in the Lake District or perhaps elsewhere in Europe.

tattycath

I. Have some savings in various different accounts.probably about 3 months worth in total-need to save more though. Ideally, I would like to save about 12-18 months worth in wages equivalent.

Ark_Welder

Any wrote: »

I think 12 months in easy access is far too much money just laying about doing nothing.

But it isn't doing nothing. It is acting as a shock absorber to more volatile assets in the portfolio.

gadgetmind

Ark_Welder wrote: »

But it isn't doing nothing. It is acting as a shock absorber to more volatile assets in the portfolio.

You also don't need it all easy access, We keep about six months salary to hand as instant access cash at 3% interest, 6 months in various "high" interest accounts (average currently 3.6%, can't access any until this October, other later) and 12 months in NS&I linkers.

We also have some unwrapped equities we could sell (about 2.5 years of essentials) but this is "pension" so even further down the pecking order than selling our house!

vacheron

I have about 8 years salary in instant access savings and ISAs offsetting my mortgage which I could draw on in an emergency. Though obviously I would have to repay anything I do draw down with interest later.

FatherAbraham

katejo wrote: »

I think that I already do that more than many do.

Unfortunately, that in itself is nothing to be proud of. Most people are vastly overspending these days.

katejo wrote: »

However i'm not prepared to live on bread and soup/drink water and go for years and years without any holiday or trip to the theatre only to find myself in about 3 years time with terminal cancer or chronic depression.

I see from the picture you paint that you are a big fan of Victorian-style melodrama.

katejo wrote: »

A few occasional small pleasures are not luxuries. I am not talking about an expensive 3 month tour round Australia but just something like a week in the Lake District or perhaps elsewhere in Europe.

Have you considered growing a mustache?

http://www.mrmoneymustache.com/

Warmest regards,
FA

gadgetmind

vacheron wrote: »

I have about 8 years salary in instant access savings and ISAs offsetting my mortgage which I could draw on in an emergency. Though obviously I would have to repay anything I do draw down with interest later.

And you'd have to drip-feed the money back into the ISAs due to the meagre annual subscription limits.

vacheron

gadgetmind wrote: »

And you'd have to drip-feed the money back into the ISAs due to the meagre annual subscription limits.

Exactly. It would take another 12 years to build the ISAs up again without even considering the lost interest held inside them, so it would be taxable savings first until the last resort.

Any

FatherAbraham wrote: »

Unfortunately, that in itself is nothing to be proud of. Most people are vastly overspending these days.



I see from the picture you paint that you are a big fan of Victorian-style melodrama.



Have you considered growing a mustache?

http://www.mrmoneymustache.com/

Warmest regards,
FA

I agree with Kate. It's all well and good to have buffer for emergencies and while I agree a lot of people spend money willy nilly, just because you have thousands and thousands for your "emergency" it doesn't mean that it is necessary to have 18 months of monthly salary put away while not having a life.

S/he asked a nice question to ponder over and discuss, to liven up this forum a bit and find more about our ambitions and personalities, and got preaching and lectures from you.

You made your point and gave your opinion the first time round. No need for further preaching.

Any

Ark_Welder wrote: »

But it isn't doing nothing. It is acting as a shock absorber to more volatile assets in the portfolio.

Depends on what you cal "easy access" ad what you call "volatile" I suppose..
I will never have large amount of something that is higly volatile I don't think.

What do you call easy access? To be able to withdraw immediately? Why would you need it all immediately? What kind of emergency would require you to drawn out 6 mths worth of salary right this minute?
You know, not be able to give notices on higher paying accounts etc..