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To wonder how much rainy day savings you need?

(11 Posts)
Mammalamb Sun 20-May-18 13:28:16

For various reasons (mat leave, moving house) we have used up a lot (not all) of our savings. We are in our “forever house” now and although it’s completey liveable, it is in need of modernisation. Aside from the mortgage we have no debt. Before ploughing money into the house, I want to build some nest egg savings. How much would you recommend; 6 months expenses? 6 months of main earners salary? Or 6 months of both salaries?

overmydeadbody Sun 20-May-18 13:29:57

Six months of expenses I'd say, enough to support the whole family for six months with no money coming in.

Bigpizzalover Sun 20-May-18 13:31:29

It’s usually advised to have 6 months living expenses so mortgage bills food transport etc and then a small amount for any essential repairs/replacements eg new white goods, vehicle repairs. Currently in the same situation (not the forever home but one that will last us a good few years) and are back up to about 4 months expenses plus a small amount towards a deposit/emergency costs

VanGoghsDog Sun 20-May-18 13:32:06

I usually go for six months outgoings but I have no mortgage. I'd probably try for 9m.

The average time for a professional to get a new job is 3m, but obvs there is some variation in that.

Things cost less when you're not working though, as you don't have commute costs, work wear, as much laundry, can home cook more etc.

I have a monthly "would like" budget and then a "bare min" budget too. The latter is a lot lower and means my 6m outgoings would actually last more like 9m if I went straight onto that budget.

annandale Sun 20-May-18 13:36:51

I agree with 6 months of 'I can get by, eating beans and potatoes' expenses, though ideally not with skimping on e.g. kids' shoes and bearing in mind food prices may go up further in a while.

Having said that, obviously there are some house jobs that need doing to prevent greater expenses in the future. I'm assuming the house is basically sound.

Happinesss Sun 20-May-18 13:44:03

We have approx a years worth of outgoings put away.
So what are bills come to every months x 12.
Possibly abit more if we tightened our belts abit

Mammalamb Sun 20-May-18 13:52:41

House is basically sound. Just the decor is not to my taste. (It’s a bit 80s/90s). Perhaps 9 months expenses (including food and a weekly spend allowance) is what we should be aiming for

Plexie Sun 20-May-18 14:01:25

Yes, six months worth of outgoings is the usual guideline. Personally I would also include the cost of a funeral too. Death is inevitable but people rarely seem to think about the expenditure!

FASH84 Sun 20-May-18 14:10:43

It depends what your line of work is , your suck pay etc DH and I get six months full pay followed by six months half pay at work and we have comprehensive critical care and life insurance, so at the moment when we're trying to pay to finish the house off and have just found out were having an unexpected baby we have less than six months saved, but our jobs are pretty secure and if we fall ill we're in a fortunate position. We also have no debt other than mortgage. Ideally I like to have six months but it's not always possible

FASH84 Sun 20-May-18 14:12:04

So many typos... Also I mean saved in our rainy day fund, money for the final renovations (goodbye home office hello nursery) and baby stuff is separate.

TellerTuesday4EVA Sun 20-May-18 16:48:56

I'd like to get up to 6 months worth of expenses..... currently have about 6 days worth in the savings account shock

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