The Edcawber Principle

Science_mum

Hi Ed sorry me again; we had a white goods catastrophe about 5 years ago. We didn’t think a water softener (needed to make hot water work), dishwasher, washing machine and fridge freezer would fail within a few months of each other.... until they did... We had a modest EF fund but we still had to borrow from my PIL... it was very sobering. The applicances failed in the order listed and we could have lived without replacing the dishwasher but we had already replaced it (and spent our EF) when the washing machine and fridge freezer went down. I really hope you never have a similar experience. At the time all our cash was in our the house.... it was quite stressfull.

edinburgher

Science_mum wrote: »

Hi Ed sorry me again; we had a white goods catastrophe about 5 years ago. We didn’t think a water softener (needed to make hot water work), dishwasher, washing machine and fridge freezer would fail within a few months of each other.... until they did... We had a modest EF fund but we still had to borrow from my PIL... it was very sobering. The applicances failed in the order listed and we could have lived without replacing the dishwasher but we had already replaced it (and spent our EF) when the washing machine and fridge freezer went down. I really hope you never have a similar experience. At the time all our cash was in our the house.... it was quite stressfull.

Thanks for that sobering thought Science_mum!

I am definitely taking on board what everyone is saying re. expected obsolescence and/or emergencies.

I started a complicated exercise to look at amortisation of chattels, but in retrospect, I think I was over egging the pudding. While I realise that emergencies happen, Mrs E and I work in boring/mercifully stable roles. We're 10-15 years into our careers and nobody has had a sniff of redundancy during that time. We also work in unrelated jobs that are in different sectors (public and private), so there is unlikely to be a "perfect storm" event that would see us both threatened.

My thinking at this point is that we should aim for 6 months of expenses as an EF and that this would cover replacement of electronic goods etc. as well. I think this would be a good balance between safety and common sense.

Still flipping terrifying - that's something like £15-18,000 :eek:

*Edit: £1.36 paid off a CC. Payday for me tomorrow, I will start building in money for an EF, but it will be small beer at the beginning...

Wizzi

We have exactly the same thoughts with our emergency fund. Six months of expenses with the hope that this is enough for any unexpected things breaking as well. If we do have to chip into to it we can hopefully build it back up gradually.

Always reassuring to see people doing similar things.

Also love your diary, have read from the beginning - we have daughters of similar ages so lots of familiar spending!

edinburgher

That's incredibly patient of you Wizzi, have a :coffee:

Suffolk_lass

Almost last word on EF, when DH fell asleep and wrote off our commuting car, we used the insurance payout, a lump of 0% loan and a top-up from the EF to buy a new car the same weekend. It was a set-back but it didn't break us. It takes time, but it is the peace of mind it gives in the long term

edinburgher

I have been paid, but don't really know what the financial situation is for the month until Mrs E is paid at the end of the week. I have started our embryonic emergency fund by taking out £30 in cash and starting a £10 monthly direct debit into a credit union. I'm a modern spender and cash is less of a temptation because I can stick in in the cupboard and forget about it. The credit union struck me as an idea because their systems are clunky, so it's not as if I can move money in and out willy nilly

It's not much, but it would cover a week's groceries, or half a tank of petrol.

*Edit: £1.14 paid off a CC - many a mickle makes a muckle :rotfl:

beanielou

I save a small amount too with the credit union.
I do seem to have to dip into it a lot though

Suffolk_lass

Well done, that is a good start. The cash fund reminds me of my young days where I always carried a secret stash of cash so that I was never unable to get myself somewhere safe. I had a terrifying episode and this was my mitigation. I actually deployed it more than once. A taxi, a late hotel booking and a bribe. All successful escape routes on their day (s)

edinburgher

Suffolk_lass wrote: »

Well done, that is a good start. The cash fund reminds me of my young days where I always carried a secret stash of cash so that I was never unable to get myself somewhere safe. I had a terrifying episode and this was my mitigation. I actually deployed it more than once. A taxi, a late hotel booking and a bribe. All successful escape routes on their day (s)

I knew it! You (and quite probably KC) were famous spies back in the day

£1.90 paid off a credit card, the finances are looking relatively healthy, all pots funded although the mortgage and big bills won't hit until the start of December.

Having a half day today - super glamorous planned activities include a trip to the Post Office to drop off my last eB@y parcel and a haircut. Off to Murrayfield for the rugby this weekend, so want to be smart for what passes for a date with Mrs E

Hazelnutty

Good luck for the rugby tonight!