Emergency Savings

[slinxy]

Hi all...

Something that I've been thinking about for a while... due to my circumstances of being a single bloke, I feel that I have to keep more savings in easy access accounts than most but at the same time feeling that I'm losing out on the investment opportunity.

If I stop working have to cover;

• my mortage without the over payments
• my car is on it's last legs and I keep patching it up so I have funds to buy a replacement when needed.
• I have two long term store loans that is interest free but again I have the funds to clear the accounts if needed.
• an interest free credit card that I use for large purchases to spread the cost.
• and then my monthly bills such as council tax, food, electric etc...

My fixed outgoings (minus mortage over payments) is around £1250 pcm, adding on £750 pcm for variable outgoings, so I would guess I need £2000 a month to survive until I get back to work.

I also have a 50% income protection from a scheme at work but that only kicks in under certain conditions.

Work wise; due to my location, I'm fairy certain that I could find a replacement "job" quite soon, but I would most likely want to take some time off. The "job" is not likely going to be in my specialist field so the salary would not come close and it will take me a while to find another position in the same field and it's unlikely to have the same sort of salary.

How many months of emergency savings plus the cost of a replacement car, debt repayment would you feel safe with in the bank? or would you not consider having the car funds and debt replayment funds in easy access accounts?

Thanks

 

[slinxy]

TBH the duration for me i completely dependant on how likely it is to happen.

I've been in my current job for almost 10 years now, so I'd get a decent redundancy package if they decided to get rid of me, so this negates the need for me to keep cash in the bank quite the same.
My work also provides 100% sick pay for any duration & has an income protection insurance if I end up having an illness that would prevent me ever being able to go back to work.

Due to the above, I don't see the need to keep masses in reserve, but without those, it would be quite different. I still try to keep 2-3 months of required expenses to hand though (currently in premium bonds)

Thanks... you have brought up some interesting points that I didn't think of...

My work also gives me 100% sick pay, the income protection is there in case I go over the sick pay period or can not return to work.
also the redundancy package is ridiculous at my place, with a 6 months gardening leave plus the redundancy notice period at full pay and the actual redundancy pay itself which would cover me for the time I would want off work and then some.

a concern still is the funds for the replacement car... I don't want to place it into shares then have to liquate a few weeks later when my trigger's broom finally dies...

 

[slinxy]

quick and dirty one from an old spreadsheet. it's roughly the same

Mortgage has changed to £395 as I reagreed it over 7 years. Everything else is pretty much the same within a few quid.
I pay for car insurance/tax/b&c insurance annually also but factored into the overall monthly

What da ****
Mortage £689.92 + £250 over payments which will come off.
B&C insurance £8.37
Service charge £26.94
Lease hold charge £16.67
Council tax £112.99
Water £27.20 - based on last years
Pet - none
Car Tax £2.92
Electric 127.64 - based on last year
boiler insurance - huh?!
Internet - 28.38 - based on last year
dieseal and public transport £47.99 -based on last year
mobile phone bills - 15.45

Food not including take aways and eating out... £313.78 -based on last year.

Then I have my gym fees, yoga classes.. etc etc... I just spent nearly 1k fixing my old banger as I didn't want the hassle of finding a different car.. lol

 

[slinxy]

If I could could eat like MatsyLR I'd likely have cleared the mortgage by now

Mad respects to him… I feel wheezy with the lack of food just by reading it.

I don’t tend to snack.. but I can eat a whole pack a jerky or pack of chicken drumsticks before a meal for protein intake.. well that’s what I say, but my scales say I’m just fat.. lol

 

[slinxy]

It might be more than 300. It's not something I really track.

I've been tracking groceries costs for the last few years, it's by far my biggest variable outgoing. This year I've started tracking the cost of every item in the hope of reducing it. There's stuff that I buy that I "fancy" at the time and never get's eaten or I didn't enjoy it by the time I used it.