3-6 Month Emergency Fund Challenge!!

DuranGirl

Well, I'm going to have to completely rewrite the budget, methinks! I've gone against my better judgement and actually ordered a new new car. Not just new to me, but actually new! :eek:Never done this in my life before. My rationale:

• 1/6 of the price - refund through scrappage deal on the car of doom means I get back what I paid for it and the money I spent on repairs over this hellish last fortnight
• 1/6 - gift from my amazing parents:A
• 1/12 - loan from said amazing parents:AThey would have lent me more, but I'd rather put it on the 0% finance than borrow from them.
• 1/12 - discount because I'm in a union (very pleasant surprise):j
• Remainder on 0% finance for 5 years (shudder - but I will overpay when I can to shorten the length of the finance deal, just because I don't like the idea of it hanging over me).

I weighed up the pros and cons of getting something second hand and none of the garage-related deals would have applied, second hand cars of a decent age are quite expensive at present, plus I will have no MOT for 3 years, no tax for 1 year (plus a refund of about 7 months' tax on the car I'm currently running). The peace of mind will also be immense.


So I'll have two debts that I didn't really want to have, but I'm determined to pay off my parents within six months (they don't know that yet). Will have to update my signature when the car comes - and then have a lie down in a darkened room... Still planning to keep my EF target though.

Black cat was asking about savings pots. My EF was nowhere near enough to get a car I felt would be reliable enough (I do a lot of miles on the motorway), so while it's still small I'm going to keep it for things like a washing machine dying, emergency house maintenance. My longer view of it is that it'll be a 3-6 month salary cushion if nothing untoward happens in the meantime. Once I achieve my goal, I'll keep that pot aside and I'll start another pot for the little emergency stuff.


I think that makes sense! I've not had a fortnight like this for quite some time...

mothernerd

I've recently had to take out a Token Payment Plan with StepChange so now have one new bank account (very simple, no overdraft, the money that is in there is all there is) and tidied the odds and ends of four old accounts (only pennies left in them) before closing my old account. Also cut up 4 credit cards so nothing other than what is in the bank account. Perversely, since I am only to pay £1 a month each to my four creditors I actually have more money for food than I have done, as I have been paying bills and creditors first.

I had an offer on my 'up for sale' house within days of starting the paperwork for the plan (very low offer, but part of the reason for the plan was that viewings would be scarce until next Easter). Until the house sale goes through I still have no money to continue paying bills for two houses (been doing that for the past eighteen months).

So I have one bank account (also have a business account but that only has enough in to pay bank charges on the account for the next six months - it's with my old bank so I wanted to see if they would 'seize' that money before I decide to pay anything in. Business still owes me for expenses from the last two years so I am not cheating HMRC). I also have a couple of piggy banks and did start saving £2 coins at the beginning of the year, but needed it for food when I reached the grand total of £14.

So atm things are very simple and I like it. I will be looking for a savings account when the house purchase happens and the debts are paid off (most of the money is going to pay for a small bungalow for my mother, which I may end up living in with her). This was a longer term plan for if/when anything happens to her partner (he has Alzheimers and they live in his house atm) but it has become obvious in the past few months that she needs the bungalow asap.

Ideally I would like to get to the position I was in when I was young. A colleague asked if I had a 50p piece and got cross because I said no without looking in my purse. I listed everything I had bought over the weekend, what I had paid with and what change I had received and told her what coins were left in my purse. Sadly my memory probably isn't that good any more.

DreamerHelen

Just to let you all know that I have a rotten cold and am feeling like death warmed up....so if it's okay I'll reply to you all tomorrow.....


Hope you ALL have a wonderful and warm night's sleep xXx

Moonbean

I'd like to join.
My goal is £2,700

ani*fan

Just did a wee tidy of 89p to my EF fund.

:j:j

Total now £7.27. This challenge is absolutely the best for keeping me on track.

DuranGirl

Hope you're feeling better today Helen

rylee12

DreamerHelen wrote: »

rylee12 .... Welcome to you, of course you are more than welcome to Join!! I have put your name on the First Post.....along with a Number....Do you have a Target in mind?

I'm going to go for £6000 please :eek:

[Deleted User]

I hope you're feeling a lot better today, Helen. Try to rest and keep warm:coffee:. Your health is more important than making and saving money.


DuranGirl, great news about your new car:T. All things considered it sounds as if you made the right decision to buy new:beer:. I've earmarked £3000 for my 'new to me' future car, that's what this challenge is for, but by the time I've managed to get that amount together I'll not get much for the money:(. When I was working I had very long daily commutes, plus had to travel huge distances across several counties whenever Mum was ill and needed me. I needed a newer/better car then but nowadays I just need something reliable to get me from A to B in a very rural area a few times a week. A well looked-after used one will be OK for my modest needs when the time comes;).

DuranGirl

Thanks Carboot. It wasn't an easy decision to make, but the stress of not having one I could rely on on the motorway was really weighing on me. If I was only driving locally, I'd have probably chanced it for a bit longer. I've never had a brand new car before, and I'm not thrilled by the thought of the finance, but Vauxhall were doing such a good deal with the scrappage and the 0%, it seemed to make the most sense. I know my parents will have a lot more peace of mind as well! And as I do most of my travelling alone, something that stands a lot more chance of being reliable and a lot less chance of conking out in the middle of nowhere is very attractive. Gritting my teeth at hiring a car until the new one arrives (hopefully within the next few days, but certainly no later than the 30th), but it means I can get back to work at last (never thought I'd say that!).

crazy_cat_lady

I think that you've made the right decision about the car Duran - I drove my last car into the ground and spent a fortune on it in the last few months of its life. I do a 30 mile round trip to work every day and although I trusted my mechanic - I wanted to be able to trust the car. My mam helped me to get a new one, and it's not a decision I regret at all.