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FTB: how much to put aside for a rainy day?

MarcusAurelius
MarcusAurelius Posts: 116 Forumite
in House buying, renting & selling
Hey all,

How many months worth of your monthly mortgage payment would you leave aside in liquid savings when purchasing your 1st property as to not to feel overstretched?

Assume no recourse to the bank of Mom&Dad.

Thanks!
«13

Comments

  • Paully232000
    Paully232000 Posts: 2,108 Forumite
    I was looking at this the other day. The money advice service say that you should have 3 months of essential outgoings in reserve, but to be fair I would be happier to have 6 months given the economy, and jobs market is at present.
    That is of course dependant on job security (if there is such a thing), and how easy it would be to get another if the worst should happen.
  • MarcusAurelius
    MarcusAurelius Posts: 116 Forumite
    Paully232000 wrote: »
    I was looking at this the other day. The money advice service say that you should have 3 months of essential outgoings in reserve, but to be fair I would be happier to have 6 months given the economy, and jobs market is at present.
    That is of course dependant on job security (if there is such a thing), and how easy it would be to get another if the worst should happen.

    That's really not a lot. Was looking for a number 12 months or higher...
  • bsms1147
    bsms1147 Posts: 2,277 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    MarcusAurelius wrote: »
    That's really not a lot. Was looking for a number 12 months or higher...
    Sounds like you've got an answer already.
  • Paully232000
    Paully232000 Posts: 2,108 Forumite
    MarcusAurelius wrote: »
    That's really not a lot. Was looking for a number 12 months or higher...

    Why were you looking for a number 12+?
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    MarcusAurelius wrote: »
    Hey all,

    How many months worth of your monthly mortgage payment would you leave aside in liquid savings when purchasing your 1st property as to not to feel overstretched?

    Assume no recourse to the bank of Mom&Dad.

    Thanks!

    3 months is the standard figure.

    SMI benefits kick in after that point in any case for redundancies, etc, so should be enough under most circumstances.

    6 months if you want to be ultra cautious.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Goldiegirl
    Goldiegirl Posts: 8,806 Forumite
    Part of the Furniture 1,000 Posts Rampant Recycler Hung up my suit!
    MarcusAurelius wrote: »
    That's really not a lot. Was looking for a number 12 months or higher...

    If you want to have 12 months worth, then have 12 months worth.

    It's your life - you need to feel comfortable with it
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • Dan-Dan
    Dan-Dan Posts: 5,279 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    MarcusAurelius wrote: »
    That's really not a lot. Was looking for a number 12 months or higher...


    Then save 12 months !? , what a strange thread if you already know you personally wnat 12 months behind you
    Never, under any circumstances, take a sleeping pill and a laxative on the same night.
  • ging84
    ging84 Posts: 912 Forumite
    Part of the Furniture Combo Breaker
    given that around half of people have less than £500 in savings and 1 in 5 people have no savings at all, i think having anything put aside means you're doing better than most people
  • calicocat
    calicocat Posts: 5,698 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Chutzpah Haggler
    12 months plus for me, but I am pretty cautious and have to have a nest egg to feel comfortable.
    Yep...still at it, working out how to retire early.:D....... Going to have to rethink that scenario as have been screwed over by the company. A work in progress.
  • Prothet_of_Doom
    Prothet_of_Doom Posts: 3,267 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Given the worst that could happen is you loose your job, but as your car goes bang, and the fridge and the cooker and Central Heating Boiler all pack in on the same day, I'd suggest 3 months buffer is not enough. 6 months is better, 12 months better still.
This discussion has been closed.
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