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  • FIRST POST
    • kezzygirl
    • By kezzygirl 4th Mar 18, 8:46 PM
    • 661Posts
    • 701Thanks
    kezzygirl
    The "just in case" fund?
    • #1
    • 4th Mar 18, 8:46 PM
    The "just in case" fund? 4th Mar 18 at 8:46 PM
    Hello. We are in the process of buying a house and I was wanting to gauge opinion as to how much we should put in a "just in case" fund. I know it is all relative to what you can afford, but I am wanting to put aside a small amount as an emergency fund. I was thinking may be 100 per month? But that doesn't seem much?
Page 1
    • tibbles209
    • By tibbles209 4th Mar 18, 8:54 PM
    • 84 Posts
    • 158 Thanks
    tibbles209
    • #2
    • 4th Mar 18, 8:54 PM
    • #2
    • 4th Mar 18, 8:54 PM
    The oft-quoted rule of thumb is 3-6 months living expenses (including mortgage payment, bills, food, everything else you need to pay for over that period). Some people go as far as a year's expenses.

    That is a pretty daunting target, so to begin with just save what you can afford. Anything is better than nothing, and if you keep saving regularly you will get there eventually I personally started with a target of 1000, and once I met that upped the target accordingly. Congrats on the new home!
    • AnotherJoe
    • By AnotherJoe 4th Mar 18, 8:55 PM
    • 9,436 Posts
    • 10,442 Thanks
    AnotherJoe
    • #3
    • 4th Mar 18, 8:55 PM
    • #3
    • 4th Mar 18, 8:55 PM
    Opinions differ as to how many months living expenses you should have , generally most agree between 3-6 months but others say dont bother put it all on credit cards. At 100/month its going to take a fair time to accumulate even 3 months.
    • kezzygirl
    • By kezzygirl 4th Mar 18, 9:01 PM
    • 661 Posts
    • 701 Thanks
    kezzygirl
    • #4
    • 4th Mar 18, 9:01 PM
    • #4
    • 4th Mar 18, 9:01 PM
    We could stretch to more per month. We are saving about 800 per month currently and our mortgage will be 300 More than our current rent.
    • PeacefulWaters
    • By PeacefulWaters 4th Mar 18, 9:01 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #5
    • 4th Mar 18, 9:01 PM
    • #5
    • 4th Mar 18, 9:01 PM
    Define emergency.

    Loss of job, longer term illness - three to six months net pay wouldn't go amiss. That might take some accruing. But how will you pay the bills if you're not being paid?

    I take the view that once a year an important item will need replacing. TV. Washing machine. Fridge freezer. Dishwasher. Always having 500 sat there waiting for a modern appliance crisis wins. Keep topping it up monthly.

    Budgeting to keep cars on the road, including having insurance excess saved, can assist.
    • kezzygirl
    • By kezzygirl 4th Mar 18, 9:03 PM
    • 661 Posts
    • 701 Thanks
    kezzygirl
    • #6
    • 4th Mar 18, 9:03 PM
    • #6
    • 4th Mar 18, 9:03 PM
    I'm thinking emergency as in the car goes wrong, boiler needs replacing etc.
    • kezzygirl
    • By kezzygirl 4th Mar 18, 9:06 PM
    • 661 Posts
    • 701 Thanks
    kezzygirl
    • #7
    • 4th Mar 18, 9:06 PM
    • #7
    • 4th Mar 18, 9:06 PM
    Define emergency.

    Loss of job, longer term illness - three to six months net pay wouldn't go amiss. That might take some accruing. But how will you pay the bills if you're not being paid?

    I take the view that once a year an important item will need replacing. TV. Washing machine. Fridge freezer. Dishwasher. Always having 500 sat there waiting for a modern appliance crisis wins. Keep topping it up monthly.

    Budgeting to keep cars on the road, including having insurance excess saved, can assist.
    Originally posted by PeacefulWaters
    I get 4 months full pay and 4 months half pay. Hubby doesn't get sick pay so perhaps we should look at his wage amount and multiply by 6 to cover us. Also thinking of having a longer term savings too...
    • Audaxer
    • By Audaxer 4th Mar 18, 10:20 PM
    • 1,051 Posts
    • 607 Thanks
    Audaxer
    • #8
    • 4th Mar 18, 10:20 PM
    • #8
    • 4th Mar 18, 10:20 PM
    Also thinking of having a longer term savings too...
    Originally posted by kezzygirl
    After you have the emergency fund, you should maybe also consider long term investing in an S&S ISA and/or additional pension contributions via a SIPP where you get 25% tax relief added. There is lots of information to learn on here and sites like Monevator if that is a route you wish to consider.
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