How much of a "nest egg" should you have?

[MadeForFun]

Inspired by the other thread in chat about the merits of overpaying a mortgage, how much do you think is a sensible amount to have in savings for a rainy day?

Would you say it's e.g. a year's salary just in case you lost your job? Or some other amount?

Just wondering what people's thoughts are on this because I'm about to put down a % deposit on a house and wonder if it's sensible to increase or save it in case the worst happens?

I think the recommended rule of thumb is 3-6 months easily accessible savings in case of job loss.

But

If you’re in an unstable industry, or the sole earner, you probably need more

If you’ve got kick-ass illness insurance maybe you need less

Etc.

And when you first buy a house most people run their savings right down so it’s not a static thing

For me nowadays 6 months expenses, but I have always cleared out all my savings to buy a house. I think a lot depends on how secure your income is.

We currently have £10,000 saved, which is roughly 4 months worth of our bills. I’d ideally like to have an emergency fund of 6 months salary but we’re over paying the mortgage as much as possible as we’re at a stage where it makes a huge difference to the overall interest.

Were paying off an extra £3,500 of the mortgage next month and this will save us a whopping £3,000 in interest.

We budget a year ahead and also have another year's worth of expenses set aside for immediate access if need be.

I would make sure you keep a 3 month buffer at the very least.

Every year I save about £10,000 and then decide to blow it on a holiday or two. I always promise myself I won’t next year, but I do.
I have to be honest. I have thoroughly enjoyed the last 20 years!

I have six months of expenses, and insurance for any kind of trauma/illness that would put me out of work for more than six months.

I honestly might be a bit on the conservative side as my job is very secure and I'd have to be in an absolute state to not be able to do it, but I'm a single mum so I like knowing I have a cushion.

Thank you all for your replies so far.

I have a well paying job for the city I live in (and qualifications I have!) but its not secure. We've had 6 threats of redundancy in the past 9 years. Things are looking up but I'm still on edge. With it being a good wage, good position, I'm sticking with it to gain as much experience on my CV as I can.

I'm single so no partner to fall back on.

With the deposit I'm planning on putting down, I'll have 8 months worth of savings should I lose my job or whatever.

I have always had some savings, it’s lucky to be in that position. Now I’m older I have some years worth of living expenses, I lucked out with my investments a few years ago. I have a long established almost 30 year relationship so shared expenses all that time. Before DH I lived in a series of shared houses with other young people right up till I was almost 29. Some people don’t like to live in shared houses but the best one was where we split expenses four ways.