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?
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
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