How much should you put aside for emergencies

[Cyclone]

Most IFA's will say you want 3 to 5 months in easy access cash before you should think about investing.

 

I don't think "before investing" is what this target is about. Very many people don't have even 1 months salary set aside, full stop, no investments.

 

---------- Post added 26-04-2016 at 13:48 ----------

 

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.

That's mortgage specific isn't it.

All mortgages legally have to allow overpayment now (they have to allow up to 10%/annum can be more), but they don't have to allow you to reclaim that money or take a payment holiday.

I know it's not much but i started paying £10 extra every month about 18mnths ago! £180 wont get me far though

 

It all counts. Overpaying early on a mortgage saves a lot more in the long run.

[L00b]

Factor in the specificity of your job as well.

 

I work in a highly-specialised field, like-for-like jobs available are few and far between, and frequently far apart geographically.

 

Whilst jobbing/contracting for contacts is sometimes a possibility, it's relatively rare and only ever a highly-fluctuating and short-term fix. With payment terms to factor in (e.g. at 30 days of invoice, means no income in first month of activity).

 

Personally, I consider 6 months' worth to be optimal, and less than 4 month's worth to be problematic (all excluding all investments incl. short-term).

 

But then, I'm a worrier (...about a decade ago, my Mrs and I both lost our jobs overnight at about the same time, right when we became expecting, with a mortgage and finance on cars, not much in the way of savings, and no entitlement to any benefit or relief whatsoever: it was fairly traumatising, and left a very long-lasting impression, I don't have any compunctions admitting that).

Edited April 26, 2016 by L00b

[Michaeldyn]

but most people on this forum dont even have a weeks money set aside

[hyper]

but most people on this forum dont even have a weeks money set aside

you reckon? I don't

[Chelle-82]

but most people on this forum dont even have a weeks money set aside

 

??? why do you think that?

[geared]

That's at the level of 6k and above though, right?

 

I can't remember, last time I was on JSA I was absolutely potless so it was an easy question to answer :hihi:

[tzijlstra]

The more the better really. We don't have an upper-limit, we have a bottom-line. The bottom-line covers 6 months mortgage, and around 2 months joint wages for emergencies (car, white goods, computers, house repairs, unexpected travel costs to the Netherlands etc.) readily accessible in a savings account. Anything on top we evaluate every year and invest in what we deem important at the time. This year a new car, last year covering my final year of the PhD financially, so next year quite likely to be stashed away again, the savings have taken a hit since I started my PhD.

[Cyclone]

but most people on this forum dont even have a weeks money set aside

 

You have inside information?

[sutty27]

The more the better really. We don't have an upper-limit, we have a bottom-line.

 

This I agree with.

[Guest]

As much as possible. Expect the unexpected.