What would happen if...? (Future finances)

onomatopoeia99

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?

Savings.

b) What about something more expensive, like a car or a boiler?

Which car? As long as one of them is working, I'd wait until I could fix it or get it fixed. Boiler I'd get a new one from savings. Four years ago when I thought it had died I was quoted around £2500, which is in the emergency account, I fixed it myself for £18 in the end (bottle of X800).

c) What would happen, financially, if one of you lost your job through redundancy?

There is only one of me. How much do you get in redundancy after 24 years? Anyway, I have savings for six months comfortably, though I prefer not to dig into them.

d) And what about long-term ill health?

I'd be in trouble. My employer pays six weeks sick/year, what with me not working in the public sector.

e) And of course, finally, what would happen - money-wise - if one of you died?

My brother would end up with a house and cash in the bank / savings to repay 60% of the outstanding mortgage (which is itself about 30% of the value of the house).

74jax

matchboxfull wrote: »

:

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?
savings
b) What about something more expensive, like a car or a boiler?
savings
c) What would happen, financially, if one of you lost your job through redundancy?
use redundancy money to see me through and try and find a job quick enough. If not hubby would support me. If hubby lost his job he is financially secure so would be ok.
d) And what about long-term ill health?
I have health insurance.
e) And of course, finally, what would happen - money-wise - if one of you died?
mine hours to my daughter, hubby has money to me and his family.


I'll put my answers in the comments. I'd love to hear your answers too, if only to get some gauge on what is normal.

My answers in red.

Serendipitious

matchboxfull wrote: »

I don't know if this thread has a natural home on any particular part of the forum, but it's kind of about planning around your family, so I am putting it here.

Basically, I am just being nosey. We're starting to look at being proper grown ups with money and asking ourselves lots of questions. I wanted to know how other families answer these questions. They're all about how you'd cope financially with things going awry. Things like:

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?

Emergency Fund then Savings

b) What about something more expensive, like a car or a boiler?

Boiler covered by landlords. As for car, I'd seriously reconsider whether I needed to replace it as I now have a bus pass and a bus stop within 200 yards.

c) What would happen, financially, if one of you lost your job through redundancy?

Careful drawdown from savings pending new job

d) And what about long-term ill health?

Savings till SPA reached, it's close enough not to worry too much

e) And of course, finally, what would happen - money-wise - if one of you died?

Only one of me, but funds are available to my family to do the necessary

I'll put my answers in the comments. I'd love to hear your answers too, if only to get some gauge on what is normal.

My answers in red.

Callie22

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?
Savings. I have separate accounts for both 'household' and 'car' and there's always a surplus in there that would cover a 'smallish' (i.e. below £1k) expense.

b) What about something more expensive, like a car or a boiler?
Savings again.

c) What would happen, financially, if one of you lost your job through redundancy?
OH is self-employed so unless something very odd happens he won't be made redundant I would get redundancy pay if anything happened in my current job, so I'd stretch that out as long as possible and look for another job asap.

d) And what about long-term ill health?
We would have to manage this as best we could, from savings/sick pay etc.

e) And of course, finally, what would happen - money-wise - if one of you died?
OH would be ok financially if I died - I did comment recently that I'd reached a depressing point in my life where on paper I'm worth more dead lol. He would get a 'death in service' payout from my work and he's also the beneficiary of my pension (which isn't massive) - I would hope that he'd use any payout to pay off as much of the mortgage as possible. When we bought our house we were very careful not to overstretch ourselves because, with OH being self employed, we both felt it was important to have a mortgage that we could comfortably cover on just one of our salaries. So, if I were to die OH could cover the mortgage and he would also have access to savings, which he could use to cover the mortgage and bills etc for a certain amount of time if he needed to give himself some breathing space. There would also be enough to cover funeral costs (which he knows I'd expect to be minimal!)

If OH were to die then things would be slightly more complex, although savings would cover immediate costs and I could cover the mortgage.

Redacted

matchboxfull wrote: »

I don't know if this thread has a natural home on any particular part of the forum, but it's kind of about planning around your family, so I am putting it here.

Basically, I am just being nosey. We're starting to look at being proper grown ups with money and asking ourselves lots of questions. I wanted to know how other families answer these questions. They're all about how you'd cope financially with things going awry. Things like:

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?
Savings or insurance depending on what it was. I put money aside each month to save for things like car repairs/potential vet bills, and have individual insurance policies for expensive appliances/gadgets.

b) What about something more expensive, like a car or a boiler?
Boiler = insurance. Car = something cheap from savings to make do until I could afford something better.

c) What would happen, financially, if one of you lost your job through redundancy?
My redundancy package is a lot better than My partner's, but we have the capacity to make cuts so we could afford our essentials from my wage and his JSA, or vice versa. We could survive until new employment was found.

d) And what about long-term ill health?
My partner has income protection and serious illness cover. I can't get cover due to pre-existing health issues. If I was so ill I couldn't work any job, even part-time, then I would hope I would fit the ESA and/or PIP criteria and we would stay afloat. I could go part-time in my existing job if my theoretical ill health would allow for part-time work. We'd find a way.

e) And of course, finally, what would happen - money-wise - if one of you died?
We both have sufficient life insurance to clear the mortgage and have surplus.

I'll put my answers in the comments. I'd love to hear your answers too, if only to get some gauge on what is normal.

Answers in red above.

enthusiasticsaver

matchboxfull wrote: »

I don't know if this thread has a natural home on any particular part of the forum, but it's kind of about planning around your family, so I am putting it here.

Basically, I am just being nosey. We're starting to look at being proper grown ups with money and asking ourselves lots of questions. I wanted to know how other families answer these questions. They're all about how you'd cope financially with things going awry. Things like:

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?


They would be paid from emergency savings account

b) What about something more expensive, like a car or a boiler?


Emergency Savings Account

c) What would happen, financially, if one of you lost your job through redundancy?


We are only a few years off retirement and presumably would have some redundancy payout as I have worked for the public sector for 20 years and my OH for a large multi national engineering company for 36 years so it would be redundancy pay then pensions

d) And what about long-term ill health?


Both over 55 so early retirement

e) And of course, finally, what would happen - money-wise - if one of you died?


We have death in service payments and pensions and savings.

I'll put my answers in the comments. I'd love to hear your answers too, if only to get some gauge on what is normal.

Answers in red above

Kynthia

A) savings
savings
C) where we are the redundancy is enough to live on for a while. If it wasn't we could manage on my income or supplement my OH's income with our savings. Thankfully I'm quite employable so we should be fine.
D) currently our work has a very good sickness policy so we could possibly be medically retired with a reduced pension, but we are probably leaving there soon. If it was OH then we could live on my income. I'm considering PHI to cover my income but will need to consider what monthly amount to have as the payout.
E) at the moment we get death in service lump sums and spouse pensions, although at our age they aren't enough to live on and wouldn't clear half the mortgage but are a nice suppliment. We are looking into each getting life insurance which will clear the mortgage and then the one left behind should fairly easily manage with their salary, pension lump sum and pension. Our children also qualify for our pension until 18 and having seperate life insurance policies means they would receive them should we both be killed (I'm not sure they would with a joint policy, it might depend on whether there is a trust as the beneficiary instead of the spouse specifically ).

girlsmum

I am a single parent..

matchboxfull wrote: »

I don't know if this thread has a natural home on any particular part of the forum, but it's kind of about planning around your family, so I am putting it here.

Basically, I am just being nosey. We're starting to look at being proper grown ups with money and asking ourselves lots of questions. I wanted to know how other families answer these questions. They're all about how you'd cope financially with things going awry. Things like:

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?
Try and fix them first, if not possible take money from savings you should have, personally my savings have depleted so if anything happens now i would have to 1. go without the non essentials like the car or WM or 2. find a good interest free deal as long as i can afford repayments of course

b) What about something more expensive, like a car or a boiler?
My boiler is 2 months old and under warranty, the car i would have to manage without until i could afford to replace

c) What would happen, financially, if one of you lost your job through redundancy?
I am a single parent with a mortgage so i would have to get another job - no other option really

d) And what about long-term ill health?
i have critical illness cover on my mortgage other than that who knows, fingers crossed i am not ill if i am i will have to manage

e) And of course, finally, what would happen - money-wise - if one of you died? again on my own..but if anything happens to me i have enough life insurance to pay off the mortgage and 3 x salary death in service, so my children will be sorted

I'll put my answers in the comments. I'd love to hear your answers too, if only to get some gauge on what is normal.

[Deleted User]

Just as a sidenote, in the event of redundancy, my firm only uses the statuary rules, which means in the event of me being canned it would barely cover 2 weeks wages. I've been with the firm for 4 years.

So don't expect redundancy payouts to actually cover you until you find another job

dsab

matchboxfull wrote: »

a) What would you do if something like a fridge, washing machine, or set of tyres blew up? How would you pay to replace them?

=> Would come out of our monthly Money. Salaries would cover these things.

b) What about something more expensive, like a car or a boiler?

=> Savings

c) What would happen, financially, if one of you lost your job through redundancy?

=> If the wife lost her Job it would not be a problem, and very little would change financially. If I lost my job I could probably live off the redundancy for quite a while (been there 15 years, and in the past they have been very generous with it), but would obviously try to get a new Job asap. We also have savings that should help to cover us for a good while without any real change in Lifestyle.

d) And what about long-term ill health?

=> I am luckily enough that my company covers this very well. I would get 6 months full pay, and afterwards 75% of my last Salary up until retirement (if needed). As the 75% if based on my pre-tax Salary I would actually not lose a lot of money compared to being working.

e) And of course, finally, what would happen - money-wise - if one of you died?

=> As depressing as it is, we should be fine. I have 2 life Insurances that would pay off the Mortgage and leave my wife with some 300K in cash (in addition to existing savings). She will get my Pension Pot paid out on top of that, and the company would pay a Death in Service Benefit of 6x my annual Salary.

Response in Purple...