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  • FIRST POST
    • Bigdebt
    • By Bigdebt 5th Jan 18, 1:17 PM
    • 5Posts
    • 2Thanks
    Bigdebt
    Emergency fund
    • #1
    • 5th Jan 18, 1:17 PM
    Emergency fund 5th Jan 18 at 1:17 PM
    Hi there Iíve been lurking around for a few weeks and have been trying to sort out a budget. On avenge how much would you like to have in an emergency fund ? Prob hard to answer I suppose as different for each person but we prob have about 100 a week left over at the mo.
    Many thanks
Page 1
    • arc2014
    • By arc2014 5th Jan 18, 1:53 PM
    • 193 Posts
    • 839 Thanks
    arc2014
    • #2
    • 5th Jan 18, 1:53 PM
    • #2
    • 5th Jan 18, 1:53 PM
    I've seen figures flotation about and the general consensus is at least £500 if you rent, £1000 if you are a homeowner.
    Logbook Loan 970.42/1000 ∑ DC1 90/1420.32 ∑ DC2 10/321.13 ∑ DC3 11.75/11.75 ∑ DC4 60/635 ∑ Personal Loan 1706.96/5000 ∑ Overdraft 0/1200 ∑ Total 2675.76/9388.20
    SPC #200
    PAYDBX18 #014 - £761.74/10,000
    Lightbulb Moment September 2017 - DFD Christmas 2018!
    • Bigdebt
    • By Bigdebt 5th Jan 18, 2:08 PM
    • 5 Posts
    • 2 Thanks
    Bigdebt
    • #3
    • 5th Jan 18, 2:08 PM
    • #3
    • 5th Jan 18, 2:08 PM
    Excellent ! Thank you ! 500 saved of the £1000 then ! Then I can start tackling the debts !
    • nicjane
    • By nicjane 5th Jan 18, 2:16 PM
    • 12 Posts
    • 14 Thanks
    nicjane
    • #4
    • 5th Jan 18, 2:16 PM
    • #4
    • 5th Jan 18, 2:16 PM
    If youíre using the Dave Ramsey baby steps, he advises saving £1,000 in an emergency fund before you start paying off debt.

    After youíre debt free (except from your mortgage), itís 3-6 months of expenses.

    Personally, I have 6 months of expenses saved in an instant access savings account, however, Iím looking to build this up to around £15K.
    Debt Free Date: 28/02/2017
    • ethranes
    • By ethranes 5th Jan 18, 5:03 PM
    • 34 Posts
    • 7 Thanks
    ethranes
    • #5
    • 5th Jan 18, 5:03 PM
    • #5
    • 5th Jan 18, 5:03 PM
    Same as above, £1000 for major emergencies, and then after clearning debt, 6 months of living costs.
    Debenhams CLEAR||AMEX CLEAR||Barclay Card CLEAR||Halifax CLEAR
    Council Tax 15/16/17 CLEAR
    Updated: 30/6/2017
    • nsl101
    • By nsl101 5th Jan 18, 9:29 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    • #6
    • 5th Jan 18, 9:29 PM
    • #6
    • 5th Jan 18, 9:29 PM
    I'm the same, I have opened a Tesco bank current account, as it pays 3% interest, better than kick in the teeth... so my £1000.00 emergency fund also earns £3.00 interest a month... also being in a separate bank i don't see it as something i can spend its entirely split out from my main banking app which helps to forget its there... Having the fund makes me feel so much more secure in the knowledge that i don't need debt...
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • venison
    • By venison 5th Jan 18, 10:58 PM
    • 2,145 Posts
    • 2,289 Thanks
    venison
    • #7
    • 5th Jan 18, 10:58 PM
    • #7
    • 5th Jan 18, 10:58 PM
    Ideally you should have the equivalent of 3 months take home pay as a back up fund.
    Ex Board Guide
    • Westie983
    • By Westie983 6th Jan 18, 12:50 AM
    • 4,353 Posts
    • 14,910 Thanks
    Westie983
    • #8
    • 6th Jan 18, 12:50 AM
    • #8
    • 6th Jan 18, 12:50 AM
    Ideally you should have the equivalent of 3 months take home pay as a back up fund.
    Originally posted by venison
    I thought it was six months, but I suppose at least one months would get you out of a pickle.

    Westie983
    Save 12k in 2018 #10 Total (£25,000)+£10,000/£12,000 = 83.33%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £40/£500 = 8.00% ( x 11)
    Xmas 2018 £1 a Day #2 Total £62.59/£365 = 17.14%
    Virtual Sealed Pot #1 Total £900/£1,000 = 90.00%
    £2 Savers Club 2018 #16 Total (£1,500)+-480/£2,000 = 51.00%

    Total £12,022.59/£15,865 = 75.78%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • adventureofmemories
    • By adventureofmemories 6th Jan 18, 12:56 AM
    • 176 Posts
    • 543 Thanks
    adventureofmemories
    • #9
    • 6th Jan 18, 12:56 AM
    • #9
    • 6th Jan 18, 12:56 AM
    really it's as much as you can save. Some people go for 1 month whilst others go for 1-2 years
    Debt to fiancee - £404.00 (left to pay) | Save £12,000 in 2018 - £371.90 all together|2,018 items in 2018 (8/2,018)
    • fatrab
    • By fatrab 6th Jan 18, 8:44 AM
    • 857 Posts
    • 2,205 Thanks
    fatrab
    Until I pay all of my debt off (including mortgage) I'm targeting an emergency fund of around £2000.


    I'm currently at £840 and will top this up to £1000 on payday. I should be able to add £100/month while paying off my debts and I feel so much better now that I have a safety net. I'd never had one before, I'd always paid every spare penny into debt payment at the end of the month.


    Stupidly, last year I paid money into my mortgage then left myself too skint to pay my insurance in full so ended up paying monthly, costing me more in the long run. That will never happen again!
    Last edited by fatrab; 06-01-2018 at 10:24 AM.
    You can have results or excuses, but not both - Wannabe debt free by Dec 2022
    June's targets - Be 15st by end of month, 11/30 AFDs
    39 x £2 coins (#32)
    • Bigdebt
    • By Bigdebt 6th Jan 18, 2:14 PM
    • 5 Posts
    • 2 Thanks
    Bigdebt
    Thank you all ! What!!!8217;s annoyed me more getting this £1000 together is It!!!8217;s takimg me about a month to do and then hit the debts which I!!!8217;m hoping I can pay £10k off in 1 year by snowballing, which I could of saved instead of having debts to pay off! So the quicker I pay them off the quicker I can save again !
    • StokieBecks
    • By StokieBecks 7th Jan 18, 8:18 AM
    • 4,534 Posts
    • 27,283 Thanks
    StokieBecks
    Important to remember whilst you are now addressing these, you must look at the reasons you are in debt. If you can pay off 10k in a year the income must be relatively good. If you know exactly how the debt came about and can show something for it that's great but a spending diary might help you cut costs on little things you hadn't thought about. Good luck on your journey
    • GothicStirling
    • By GothicStirling 7th Jan 18, 8:30 AM
    • 1,056 Posts
    • 785 Thanks
    GothicStirling
    Minimum of 3 months is the advice I've been given. This allows for you to survive for 3 months should you lose your job, without relying on the govt. to bail you out.
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