Emergency Funds

whoknowskt

Hi all!


I am living alone (well I have 2 cats) and was wondering what sort of emergency funds people have (if possible) and what my emergency fund should be before I start overpaying my mortgage.


I'm lucky enough to be in a fairly secure job which pays full sick pay for the first 5 months (as long as I have doctors notes)


My bills (includes optional such as Netflix and yearly split down including car insurance, tax etc) is £779.16


I am living alone for the first time ever and do have a mortgage and I want to make sure I'm covered if things go wrong, any advice?


Many thanks!!

NewShadow

I always try and make sure I've got three to six months money stashed in my savings - 12 weeks might seem like a long time, but if something unexpected happens it can go in a flash.

nuatha

If you don't have veterinary insurance, then its very easy to end up with a bill of over £1000.
Replacing a combi boiler is likely to be a similar amount. If your employer goes under then you don't have the 5 months cover - I know you said your job is secure, but there's a lot of sudden firm closures that were thought to be secure.


I'd start with a baby fund of £1000, I'd then aim to build 6 months of living expenses. I appreciate this is a sizeable chunk of potential mortgage overpayment. There are people who advocate a £1000 or three months salary.
I used to keep 12 months living expenses and have been trying to rebuild that - adopting uninsurable stray cats has knocked me back a couple of times (hence knowing how easy it is to run up a vets bill of over £1000), but I'm self-employed and don't get sick pay.

HTH

whoknowskt

nuatha wrote: »

If you don't have veterinary insurance, then its very easy to end up with a bill of over £1000.
Replacing a combi boiler is likely to be a similar amount. If your employer goes under then you don't have the 5 months cover - I know you said your job is secure, but there's a lot of sudden firm closures that were thought to be secure.


I'd start with a baby fund of £1000, I'd then aim to build 6 months of living expenses. I appreciate this is a sizeable chunk of potential mortgage overpayment. There are people who advocate a £1000 or three months salary.
I used to keep 12 months living expenses and have been trying to rebuild that - adopting uninsurable stray cats has knocked me back a couple of times (hence knowing how easy it is to run up a vets bill of over £1000), but I'm self-employed and don't get sick pay.

HTH

Unfortunately I rescued my two cats and I haven't got them insured, haven't a clue fully on their age but I believe it to be about 7 years old! Thankfully they're indoor only so I'm hoping they can't injure themselves as much as they could outdoors.
I live in an electric only flat that is already boiling hot with the little bit of sunshine there is. I have been here since early February and haven't needed any heating on once and I recently installed an electric shower, so the hot water is only on if I want a bath (I boil the kettle for washing up or use the dishwasher the previous tenant left)


Thank you both for the advice though! If you have any other advice for someone living alone for the first time it would be highly appreciated!!!!

nuatha

whoknowskt wrote: »

Unfortunately I rescued my two cats and I haven't got them insured, haven't a clue fully on their age but I believe it to be about 7 years old! Thankfully they're indoor only so I'm hoping they can't injure themselves as much as they could outdoors.
I live in an electric only flat that is already boiling hot with the little bit of sunshine there is. I have been here since early February and haven't needed any heating on once and I recently installed an electric shower, so the hot water is only on if I want a bath (I boil the kettle for washing up or use the dishwasher the previous tenant left)


Thank you both for the advice though! If you have any other advice for someone living alone for the first time it would be highly appreciated!!!!

One cat had a CVA, initial bills were £2.6K and another 5-600 over the next 3 or 4 months. This weekend we've had a bill of just over £1k from what the rescue centre described as snuffles. I really hope your cats don't need any vet trips, but bills can rapidly mount if they do - unfortunately at 7 years old it would be very difficult to insure them.
I built a store cupboard very early on when I first lived on my own, having food it meant few last minute dashes to the shops or phone calls to the takeaway. I batch cook meals so there is something on the nights when I can't be bothered (it takes very little effort to cook an extra two or three portions)

HTH

marco1dog

It is a few years ago now but I adopted an older cat and was able to insure her with More Than.
They may not do this now but well worth checking. I just explained that I had found her and didn't know her history. Good Luck.

RAS

I would aim to have at least £6K tucked away so that you can cover bills for 6 months if you have to.

I appreciate that you have good illness cover but that can disappear if you employer goes belly up or you get made redundant.

Also once you have settled a little consider those things that make a difference.

Make sure your pay off cards every month.
Pay insurance and taxes annually as this is cheaper.
Replace older equipment with more efficient models; one guy discovered his fridge freezer cost £30 per month in electricity so a new paid for itself in months.
Invest in skills and tools.

maman

I find I save any money that's leftover each month. I appreciate some people don't have that luxury but if you get yourself into an mse fame of mind you're unlikely to spend just for the sake of it. The 'do I need it rather than want it?' test works well for me. Then when you've got a good little nest egg for emergencies, you can think about things like treating yourself.


One thing that regularly crops up on here is saving on your food bill.

Hermia

I agree that six months is a good goal to aim for. IME when you lose your job or suffer illness everything always takes longer to sort out than you think. I remember I once lost my job and managed to get one sorted out relatively quickly, but they were having a three-month backlog with the CRB checks!

I would also ensure you have enough in savings to fully cover any contracts you have. I have noticed that it is often the phone/gym/Sky/whatever contracts that are the things that often cause huge problems. I have seen friends panic more about the two year contract they are locked into than their bills!

meritaten

if you are struggling and want an emergency cash fund - Jars are a good way for saving.
I have a 'Pounds' jar and a 'Silver' Jar and a 'Pennies' Jar.
in just over a year I have accumulated nearly £140 in the 'Pounds jar' some weeks three or four pounds of leftover housekeeping go in - some weeks its nothing.
the silver jar gets fed 50p and 20p coins every week (I empty my purse and start each week 'fresh' with that weeks housekeeping money) the total so far is about £85
the pennies jar also gets fed with pennies picked up in the street - and isn't to be sniffed at! total so far £28 or so (haven't counted it in weeks so probably more).
so that's over £250 that I would have wasted if I had left it in my purse - and that's a nice sum which I could use for emergencies (oh - come to think of it I have taken some for vets bill and some to 'top up' overspend on housekeeping', but, overall I am pleased with my modest savings.