Savings

[NorthernWoody]

I know most people I know prep for a cashless society, however, I am very pleased to report I am now devoid of my credit card balance and overdraft (what a relief!). I have a small amount of savings but was wondering if anyone buys in to having a few months wages accessible in case of sudden job loss or any other major changes?

I am now using the bit of spare cash I have to pop some away and also start saving for or looking to buy items that were a little bit out of my budget range before.

I would be interested to know other peoples thoughts

[pseudonym]

I was up to 6 months cash available and aiming for a year.

Following my Father's death I blew through all that in a month.

That's what it was there for.... Emergencies.

It is not always last minute bulk buying before the zombies arrive, it can be an engine blow out, boiler bursting or in my case a sudden death.

I am not a financial expert and I don't play one on Youtube but, if you can, when you are clear of debt get a supply to hand.

HTH

[jansman]

I agree with pseudonym. You never know what is around the corner. Like many people,if I don’t work, I don’t earn. So we like to have a little bit of cash handy.Mind you,the last 12 months have seen our savings get caned,as both daughters split with husbands,and mum and dad had to step in and sort out rental deposit and suchlike. So yes, get a bit of money at the back of you.

[Yorkshire Andy]

Know one thing most savings account rates are poo!

I've had better returns on the few quid I've stashed on the premium bonds


Little man has about £200 in them from his christening money and last year he got a return of £75! (3x £25 wins)

My savings took a battering when Mrs A needed a new car due to new job.. was earning nothing in the bank and worked out better than getting finance ... We bought it it's ours ..... no worries about it getting repossessed if we both loose our jobs etc no silly monthly rates or end of finance closure bills et all

[jansman]

Know one thing most savings account rates are poo!

I've had better returns on the few quid I've stashed on the premium bonds


Little man has about £200 in them from his christening money and last year he got a return of £75! (3x £25 wins)

My savings took a battering when Mrs A needed a new car due to new job.. was earning nothing in the bank and worked out better than getting finance ... We bought it it's ours ..... no worries about it getting repossessed if we both loose our jobs etc no silly monthly rates or end of finance closure bills et all

Technically speaking,poor interest rates,combined with inflation rates mean that saved money actually loses buying power month on month. Shelf stable food ( which you will use of course) probably gives you a better return! Eating now at last year’s prices,as it were.

That said though,you can’t beat having instant access to cash when it’s needed. The plumber or vet doesn’t generally accept payments in tinned tomatoes!

[Smudge]

For a long time we weren't able to save, we've gotten to having about 4 months or so salary saved.

It came in handy a few months ago when I threw a paddy and walked out of my job. I could have been working again sooner (turned down 4 offers) but held on for the job I really wanted.

I was out of work two months, one of which was covered by money owed and with wife working we didn't need to dip into savings too much.

Having money too hand stashed at home and some savings in the bank is just another prep, we add to house stash periodically.

[bobble]

Having lived through a phase where I had to live on £75 a week, I now have little 'stashes' of cash in little boxes.
My rent was £25 a week, debt repays £10, heat/ light £5, petrol £5, food £18, the remaining £18 went on car bills, dental etc, birthday/Xmas, anything left went into a savings account. That was over 20 years ago!
I still set myself little savings targets like, 'don't buy a newspaper but save the £1.50 in a little tub', that is this year's 'saving game'.
I've got a catastrophe fund, a burial fund, a 'farm' fund (garden/hens/bees) and a 'slummy' box' . I pay for my shopping in cash and the change goes in the 'slummy' box.

[hanhan]

For a long time we weren't able to save, we've gotten to having about 4 months or so salary saved.

It came in handy a few months ago when I threw a paddy and walked out of my job. I could have been working again sooner (turned down 4 offers) but held on for the job I really wanted.

I was out of work two months, one of which was covered by money owed and with wife working we didn't need to dip into savings too much.

Having money too hand stashed at home and some savings in the bank is just another prep, we add to house stash periodically.

Yes, you can't beat being able to walk out of a job you hate. That was a key motivating factor in pushing me to save into an emergency fund.

[hanhan]

I know most people I know prep for a cashless society, however, I am very pleased to report I am now devoid of my credit card balance and overdraft (what a relief!). I have a small amount of savings but was wondering if anyone buys in to having a few months wages accessible in case of sudden job loss or any other major changes?

I am now using the bit of spare cash I have to pop some away and also start saving for or looking to buy items that were a little bit out of my budget range before.

I would be interested to know other peoples thoughts

I think it is definitely worth having some cash to hand because you never know if there may be an unexpected vet bill, an item that breaks and need replacing, sudden job loss, illness or injury that could lead to spending more than you expect. The interest rates are rubbish at the moment so I don't expect to get interest, but I like to have something ready at hand in case life throws a curve ball and its something where bags of rice and beans won't do.

[GillyBee]

The advice I was given years ago was to aim for a minimum of 3 months expenses (not income) in an easy access account. Also save 10% of your income as soon as it came in and learn to live on the other 90%. For many years I ignored this, thinking I was too broke to do it, then tried it out about ten years ago and realised it was good advice all along.
Our car blew up this summer and we were able to just dip into savings and pay cash. Before the change I would have had to go cap in hand to get a loan and pay the interest & cope with finding a monthly repayment when I had no slack in the monthly expenses. Now I am repaying myself at an interest rate I am happy with.