The £1,000 emergency fund challenge.

[Deleted User] · 31 January 2015 at 6:29AM

January 2015 Just want to wish you all the best now you have taken the big step of starting a DMP:beer: . Mine's nearly 2 years in now, also with StepChange, and the best thing I ever did.

Getting an EF together is so hard as I haven't anything left over after my StepChange DD and essential household expenses have gone out of my account. I'm trying to save anything extra I make from selling stuff etc, plus I've saved my electricity refund which was an absolute lifeline. Having no credit cards now I'm on the DMP is scary in case an emergency crops up (you're probably in the same boat) so I'm doing everything I can to build up a small emergency cushion 'just in case'.

Keep at it, you'll get there

Toomuchdebt · 31 January 2015 at 5:56PM

£79.38 in my very very small emergency fund now. I do however have £560 in my moving house fund so if there was an emergency that was more than £79 I would have to use the moving house fund.

so_very_confused · 1 February 2015 at 10:40AM

Hi January
Don't feel guilty the worst thing I ever did was throw every penny and more to my creditors leaving myself nothing to fall back on. The one thing creditors get irritated with is changes in plan. On two occassions I have had to cancel reduce payments due to car/boiler repairs. Stepchange have been fine but you have to ring all the creditors to explain it is a royal pain so this year by I am having an emergency fund.
I would suggest as I'm sure others have a little wriggle room in your dmp just enough for a little treat or to save for your ef. Personally I think this is reasonable and as someone who sc has told to increase their budget don't believe I am being unfair to creditors. Remember you are doing the right thing paying back unlike many who choose not to.
Svc

so_very_confused · 1 February 2015 at 10:43AM

patman99 wrote: »

That's 86 of us all striving to build an EF. Must say, I'm very impressed.

Absoloutly and if we all make it that's a lot of dosh! :j
Good luck with the franchise Patman

[Deleted User] · 1 February 2015 at 11:12AM

so_very_confused wrote: »

Hi January
Don't feel guilty the worst thing I ever did was throw every penny and more to my creditors leaving myself nothing to fall back on. The one thing creditors get irritated with is changes in plan. On two occassions I have had to cancel reduce payments due to car/boiler repairs. Stepchange have been fine but you have to ring all the creditors to explain it is a royal pain so this year by I am having an emergency fund.
I would suggest as I'm sure others have a little wriggle room in your dmp just enough for a little treat or to save for your ef. Personally I think this is reasonable and as someone who sc has told to increase their budget don't believe I am being unfair to creditors. Remember you are doing the right thing paying back unlike many who choose not to.
Svc

Well said, so very confused:T. Couldn't agree more.

I started off owing so much and thought my plans for repayment and the amounts I was offering to creditors wouldn't be accepted unless I cut my own spending costs to the bone (and then some).I just wasn't realistic in the amounts I anticipated that things would cost.

I really struggled the first year just to survive each month. Goodness knows how I would have coped if an emergency had arisen:eek:. When I reviewed my budget with SC at the end of the first year I explained that I was struggling and they said a DMP was not intended to make people struggle like that. I'd had a slight increase in various incoming amounts and they helped me jiggle my budget so I was still paying the same to creditors (so as not to have to renegotiate and mess them about) but also 'keeping' a bit more for myself by subtly increasing some of my budget catagories. This has certainly eased my worries.

Also,If I make any extra now through selling stuff etc (which is over and above my declared income on SC) I can use it to save towards my EF instead of pouncing on it with relief to pay for essentials like groceries.

so_very_confused · 2 February 2015 at 10:37AM

Had to wait until payday but putting my unsocial hours money for over Xmas and New year in ef with an extra fiver so I can bring it up to a magnificent £200:j I feel very positive at the moment but it's usually about now the car packs in and costs me a fortune. To be honest I really need two efs one soley for the car.

Kelxx · 2 February 2015 at 2:21PM

£7.00 went across to Nat West today so my E-Fund so far is No. 83 - £14.11/£1000.00 :j

As the tortoise says 'Slow & Steady wins the race'

Jonesy88 · 2 February 2015 at 3:54PM

Payday shuffle done and the fund is up to £200

patman99 · 2 February 2015 at 5:57PM

Never thought of the bigger picture. If we all end-up hitting the £1k target. Then as a collective, we will have saved a total of £86,000. That would be an amazing amount.