Cyclone Posted April 26, 2016 Share Posted April 26, 2016 There are various recommendations about the minimum that people should have in savings in case of unexpected expenses, 2 months pay is a common one that I've seen. And there are various statistics about the average amount actually saved, often in the region of 1 - 2 week pay... How much should it be, how much do you put aside (as a multiple). And if someone receives in work benefits (perhaps we'll exclude child benefit though) then should they still try to save this much for emergency? Link to comment Share on other sites More sharing options...
Detetcive Posted April 26, 2016 Share Posted April 26, 2016 There are various recommendations about the minimum that people should have in savings in case of unexpected expenses, 2 months pay is a common one that I've seen.... Yes. I'd agree. 2-3 months salary seems sensible if possible. Link to comment Share on other sites More sharing options...
Chelle-82 Posted April 26, 2016 Share Posted April 26, 2016 (edited) I've always gone by the rule that you should have at least one months wage set a side for emergencies. If you have a mortgage then my advice would be to set aside at least 3mnths worth of mortgage payments should you find yourself out of a job. Dont forget! those with mortgages dont get hand outs to help pay the bills!! Edited April 26, 2016 by Chelle-82 Link to comment Share on other sites More sharing options...
bkcin Posted April 26, 2016 Share Posted April 26, 2016 At least 3 months I'd say. The initial period of getting to that amount isn't going to be fun for most but the buffer certainly helps to alleviate stress when you get the unexpected car repair bill or the boiler packs in etc. Link to comment Share on other sites More sharing options...
geared Posted April 26, 2016 Share Posted April 26, 2016 1-2 months wage is good, although you could also consider what kind of 'emergencies' you might find yourself in. Things like the car breaking down, the boiler packing up or the cat getting sick - well if you live in a rented house, and don't own a car or pet then you won't be in those kinda emergencies. You could still loose your job though, although IIRC savings are taken into consideration when applying for JSA. Link to comment Share on other sites More sharing options...
hyper Posted April 26, 2016 Share Posted April 26, 2016 1-2 months wage is good, although you could also consider what kind of 'emergencies' you might find yourself in. Things like the car breaking down, the boiler packing up or the cat getting sick - well if you live in a rented house, and don't own a car or pet then you won't be in those kinda emergencies. . ^^ this So for example, if I had no car now, I could survive, as I walk to work. If I worked out of town, then I would need to have enough cash to buy some transport. I couldn't do without central heating in winter, but I could in summer I can forgo a holiday if it all comes crashing down So, there is no absolute amount (or ratio) that is a definitive answer. It depends on personal circumstances and what each person considers to be necessary Link to comment Share on other sites More sharing options...
Obelix Posted April 26, 2016 Share Posted April 26, 2016 There are various recommendations about the minimum that people should have in savings in case of unexpected expenses, 2 months pay is a common one that I've seen. And there are various statistics about the average amount actually saved, often in the region of 1 - 2 week pay... How much should it be, how much do you put aside (as a multiple). And if someone receives in work benefits (perhaps we'll exclude child benefit though) then should they still try to save this much for emergency? Most IFA's will say you want 3 to 5 months in easy access cash before you should think about investing. Link to comment Share on other sites More sharing options...
Cyclone Posted April 26, 2016 Author Share Posted April 26, 2016 I've always gone by the rule that you should have at least one months wage set a side for emergencies. If you have a mortgage then my advice would be to set aside at least 3mnths worth of mortgage payments should you find yourself out of a job. Dont forget! those with mortgages dont get hand outs to help pay the bills!! Or as an alternative I suppose pay for mortgage income protection. ---------- Post added 26-04-2016 at 13:44 ---------- 1-2 months wage is good, although you could also consider what kind of 'emergencies' you might find yourself in. Things like the car breaking down, the boiler packing up or the cat getting sick - well if you live in a rented house, and don't own a car or pet then you won't be in those kinda emergencies. You could still loose your job though, although IIRC savings are taken into consideration when applying for JSA. That's at the level of 6k and above though, right? ---------- Post added 26-04-2016 at 13:45 ---------- ^^ this So for example, if I had no car now, I could survive, as I walk to work. If I worked out of town, then I would need to have enough cash to buy some transport. I couldn't do without central heating in winter, but I could in summer I can forgo a holiday if it all comes crashing down So, there is no absolute amount (or ratio) that is a definitive answer. It depends on personal circumstances and what each person considers to be necessary Good points. You can't have a car breakdown if you have no car. So you have rent and food and bills to cover if you lost your job. Sufficient money to cover that for 2 months is a good target then? Link to comment Share on other sites More sharing options...
Bonzo77 Posted April 26, 2016 Share Posted April 26, 2016 There are various recommendations about the minimum that people should have in savings in case of unexpected expenses, 2 months pay is a common one that I've seen. And there are various statistics about the average amount actually saved, often in the region of 1 - 2 week pay... How much should it be, how much do you put aside (as a multiple). And if someone receives in work benefits (perhaps we'll exclude child benefit though) then should they still try to save this much for emergency? I'd say a good month, maybe 2? Once you've reached that safety net, maybe you could start putting a few quid towards a well earned holiday? Link to comment Share on other sites More sharing options...
Chelle-82 Posted April 26, 2016 Share Posted April 26, 2016 Or as an alternative I suppose pay for mortgage income protection. Also, pay a bit extra on your mortgage every month so you are ahead with payments and could possibly request a payment holiday should the worst happen. I know it's not much but i started paying £10 extra every month about 18mnths ago! £180 wont get me far though Link to comment Share on other sites More sharing options...
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