The £1,000 emergency fund challenge.

[Deleted User]

I agree with what you said about tiddly little amounts in a variety of pots, it isn't any use to me either as I'd have to raid the whole lot if anything big came up:eek:

Although I feel a strange sense of relief at not having access to credit now I'm on the DMP it was so scary at first. Being only able to spend the money I actually have (whether for everyday living or, perish the thought, a major emergency) was so worrying at first but I kind of quite enjoy the planning and juggling that I need to do now. I hope it will set me up for a successful debt-free life eventually. Needless to say, a walletful of credit cards with huge credit limits has been my downfall:o.

I still worry in case a truly major catastrophe occurs (such as my old car actually dying when, in such a rural area as this, it is an absolute essential:() because I haven't a clue how I could afford replace it. But by keeping my one EF pot topped up I rest easier in coping with such things as car repairs etc.

YoungBusinessman

As you can see from my sig iv been sticking into this challenge, im now at £786.62....i predict i might manage to hit the £1,000 in April, fingers crossed! £1,000 is not enough though i dont think seeing as my PCM outgoings are £2,500 minimum so might have to go for that.

Buffythedebtslayer

rising_from_the_ashes wrote: »

Thanks both for the insight

Although DF now it took many years to get here

It was only when i started my pots that i really got anywhere - i was really obsessive about them at first and had a separate pot for every little thing (so instead of 1 car one, there were 4!) but then it got silly as i think i got to 19 with piddly little amounts in & needed more :eek: - finally down to 3 but the pets have 3 too!

Similar scenario just a different way of doing it i think

Where i fall down is i don't (or didnt before i started this challenge ) have a budget anywhere to cover things being replaced / breaking down - so anything big would have to go on my cc which id then struggle to pay off (budget still doesnt have a lot of wriggle room:o)

That was true for me too, until I had some pots going I felt like I was always going to be in debt and so I was. Having got out of debt twice, this time it feels different as I believe I can save up for stuff now. Mind you saying all that, as with Rising, it would only take one break down of "something" and it may all go tits up! There is a lack of wriggle room here.


Congrats on the job Patman X

Hoipolloi

Congrats on getting a start date patman :beer:

I'm up to £250 in my emergency fund now :beer:

[Deleted User]

Lovely to see people on here like rising from the ashes and Buffy who are now debt-free. Must be a wonderful feeling. Well done:beer:

patman99

Rising, in response to post #788. I for one, use a savings account to keep my EF fund in.
This makes it easy to manage in comparison to many small 'pots' (and it earns interest as well). I guess when it comes to cars, I'm lucky as I own an '08 plate Berlingo diesel which I purchased in 2013 with just 24k miles on the clock.

I do budget for servicing, but there are times that something unexpected goes wrong with it.
Last year it needed a new back box on the exhaust as you can no longer get the hanging strap (which had corroded) separatley any more.
This year, it needed the steering wheel fixed and the hooter as well.

My EF came to the rescue as I had put enough money in it to cover most of the costs. Whereas in the past, I would have had to scrimp around for the money or use a credit card to pay for it.

CountingPennies

Had to transfer £10 from my EF account into my current account as the gas has run out (we on pre-payment metre). Usually budget so wee for this but we must have used more heating that normal (I top up every 2 weeks, was due to be done Saturday).

Still I guess that what the EF is for!

CP xx

January2015

rising_from_the_ashes wrote: »

Hope noone minds if i ask a really cheeky question:o

Not at all intending it in the horrible way it may come across - just really curious to know the answer

Ive seen loads of people use their EF to pay for car repairs / mots etc - fantastic that its there for this :Tbut do you not budget for car costs generally?

Maybe its because ive been around here a few years and had big debts to pay when i started & had the importance of putting money aside for budgeting for annual bills / car maintenance etc drummed into me by others so i could clear the debts?

I do similar to Buffy and have several budgeting pots that I pay each month eg house (insurance, my annual landline payment etc), car (tax, servicing & maintenance etc), others (dentist, opticians etc), pets (everyday stuff)

Sorry as i know that will seem really checky i am just generally curious to learn how others manage their budgets - as i'm always aware im not the best at it! If theres a better way' id like to know what it is!:)

We've just started a DMP (first payment to Stepchange 01/03/15) - historically we would have put car repairs onto a credit card:o and we have now started budgeting for such things but this one hit us before we had saved enough in the car repair/maintenance pot.

Use emergency funds it is then - but we will ensure we budget/save for car repairs in future and our emergency fund (when rebuilt up will not have to subsidise this foreseeable expenditure.

Picking the car up tomorrow so will update my signature when the funds actually leave the bank

Daisychain1

Is it possible to join you all? I know I'm a bit late to the party but I've just stumbled across this savings challenge and feel this is ideal for me. I have just started reading the Dave Ramsey books and I am going to begin to follow his method so this would be the ideal challenge to help me complete baby step one - the £1000 emergency fund.

Your help and encouragement along the way would be much appreciated. I will keep my progress updated in my signature.

Many thanks in advance

DC1

Meatloaf1981

Hiya, have asked to join previously in the thread but may have been overlooked! I'd be grateful if I could be included.

Meat