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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Does everyone have a rainy day fund?

43 replies

2019holidays · 21/01/2019 13:35

My income has increased by a couple of hundred a month and I found a short holiday in the sun at the end of the summer that this would cover.

However it's still a low income and while I would never struggle to pay bills/mortgage i drive a very old car and have quite a few jobs that need doing in the house.

A break would be lovely. But really I should probably be building up a rainy day fund. I can't figure out how much I need to save before I can justify treats.

OP posts:
Original poster
2019holidays · 21/01/2019 13:38

Oops I forgot it's aibu. I was going to post in Chat instead. oh well.

OP posts:
hotstepper4 · 21/01/2019 13:41

Eh, take the holiday. Life is short.

I found that by putting all and any change I had on me in a piggy bank from July was a couple of hundred by Xmas.

It's a good idea to set aside a bit when you can but I think life is for living.

SoyDora · 21/01/2019 13:42

I think it’s usually advised to have at least three months salary as a back up, although I don’t imagine many people do.
Do you have any savings at all? Enough to cover a new boiler/broken washing machine/car repairs etc? I’d want at least a couple of thousand for unexpected expenses such as these.

thecatsthecats · 21/01/2019 13:43

Here's what I've done with every pay increase (numbers simplified).

Take home was £1000:
£500 bills
£300 lifestyle
£200 savings

Take home increases to £1200:

1 month of 'treat yourself with extra £200, then
£500 bills
£350 lifestyle
£350 savings

So a month to celebrate the whole amount extra, then a small increase to personal spending (an extra shopping trip, a trip out once a month), but the majority of the boost into savings.

I would try and save for a rainy day AND save for your treat - you can get such brilliant deals on holidays that it won't take long saving £50 per month out of an extra couple of hundred (assuming you were surviving on the amount before).

Original poster
2019holidays · 21/01/2019 13:57

Honestly, I have little set aside. I have up to £1000 interest free credit for emergencies. Not ideal but it's there as a back up.

I used to be quite well off and then had nothing, hasn't been possible to save. If I needed a new car I'd struggle.

I really should be sensible and save. I was thinking risk this little splurge, then save. DC would also love it.

OP posts:
jessstan2 · 21/01/2019 14:19

I have rainy day funds now but never did when I was younger (or if I did it would be in the red :-) ).

Having a little break will refresh you, go for it! Things you buy or have repaired will fall into disrepair again sooner or later but a holiday can never be taken away from you. Make sure you choose well, something you are pretty sure you will enjoy.

JasperKarat · 21/01/2019 14:25

We have separate savings for long term, emergencies/slush fund and then specific things eg holiday fund, maternity leave fund (soon to be used rather than added to when my maternity pay drops in a few months) previously had a wedding fund. So when we're saving we allocate set amounts to each account and you don't feel you're depriving yourself of one thing to have another, and different accounts have different priorities. Nothing going into the holiday fund at the moment as I'm not on full pay again until October, and we've just had to replace my car unexpectedly.

BackforGood · 21/01/2019 14:48

Definitely start saving your 'increase' , straight into a savings account, with a standing order on payday - what you've not had, you'll not miss.
But why not also see if you can save separately from that.
Someone had a genius suggestion on here last week - if you do mobile banking, every day, shift the 'pence' in your account into a savings account (so if there were £482.53 in your account, put the 53p into savings). You'll not notice it gone, and it could add up to a couple of hundred over a year.
Or, if you are more of a cash person, put all coins less than £1 you have in your purse / pocket at the end of each day into a jar, and save them. It really works in a 'look after the pennies' way.

As others say, it is good to have about 3 months salary put by as an ideal, but it is also great for families to go on holiday and all the positive things that does for you. I'd go on holiday, but also start to build up a fund too.

Original poster
2019holidays · 21/01/2019 19:42

3 months salary has always seemed odd. Is it based on finding a new job if you had to. Even still it doesn't make sense.

I guess I could currently cover one household item like a washing machine giving up. Maybe I need to aim for savings that cover replacing the car before booking a holiday..

I think I will go for the part saving for rainy day, part holiday fund. Which probably means holiday 2020. (I really want to go though!)

OP posts:
SoyDora · 21/01/2019 19:48

I imagine it’s based on having enough to pay your mortgage/rent and bills for 3 months while you look for another job.

Original poster
2019holidays · 21/01/2019 20:08

Yes 3 times monthly expenses makes more sense. When I earned more and there were two incomes one months worth would have lasted 3 months. Now 3 months would last exactly 3 months. Disposable income really varies.

OP posts:
LoubyLou1234 · 21/01/2019 20:14

I ran up small debts when I was younger. I was on a crap wage and spent on my cards instead. It took years too pay off. Since I became debt free I've saved.

I'm on slightly better money so I save 10-20% my wage monthly. This is currently used for house stuff, holidays and longer term. I feel secure that if things go wrong we have cash to sort them without resorting to credit. I have enough disposable left for treats and fun.

SauvignonMum · 21/01/2019 20:18

Have the holiday. Once you're not in debt, I'd go on the holiday.
But I wouldn't go crazy - you don't need holiday clothes, loads of spending money, etc. It's so easy to get swept up in all that. I've done loads of holidays on the cheap.

Concentrate on your savings once you're home
and pray that nothing goes wrong in the meantime

Burpsandfustles · 21/01/2019 20:18

I'd say one month spend it but then save for as long as it takes, probably a year to get yourself set up.

Sort your money out and set aside some each month for all your monthly needs outside bills. Put money aside for Xmas. 20 quid a month. Money for bday. Money for holiday. Then imagine... This Xmas.. You will have a few hundred just for it, imagine at bday.. You will have ££ just for it and perhaps by January next year you can not only afford holiday, according to your limit.. But you may have money to start saving for next holiday.

Burpsandfustles · 21/01/2019 20:22

Save for both and all!.
Emergency money and fun money.
Our holidays have always been done ultra cheap though. One year we had one night in a b and b by the sea and another night later on in year.
But little by little with saving, selling etc we managed to build up rolling funds.

WatcherOfTheNight · 21/01/2019 20:22

I did,I always saved as that's how I was brought up .
Doesn't need to be much ,50p a week when I was younger !

I had 2 children & I wanted to save what I could for their futures .

Then 15 months ago, my eldest,my only Dd died suddenly .
I spent every penny of my savings on the best funeral I could .
I couldn't have done it without them.

I'm only just getting back on my feet & starting to save again,small amounts add up !

Original poster
2019holidays · 21/01/2019 20:30

Watcher so sorry.

OP posts:
notdaddycool · 21/01/2019 21:02

We had plenty of savings until we bought a bigger house just before DC1 appeared. Wife was on SMP only, then nursery, DC2 and more nursery. We haven’t recharged, indeed we’ve parked some on an interest free credit card. I’m not happy about it but needs must and it’s not permanent. At the end of the year DC1 will start school and DC2 will get 30 hours, first we’ll pay off the CC but reckon we can start to build it up again. Reckon 3 months salary might be a stretch but 3 months expenditure might be more realistic.

PurpleDaisies · 21/01/2019 21:05

Yes, but it rained recently so there’s not much in it any more!

I’d take the holiday.

donajimena · 21/01/2019 21:12

I would do the holiday. If you can build a fund alongside it you'd feel better even if its small.

Purpleartichoke · 21/01/2019 21:14

I don’t consider a holiday affordable if it means you don’t have savings. We only save for holidays when our emergency fund is full. We only holiday with money we have, never credit.

awishes · 21/01/2019 21:18

@watcher
So sad reading your post 💐

PurpleDaisies · 21/01/2019 21:19

Flowers watcher

CharDeeMacDennis · 21/01/2019 21:28

I actually do have a rainy day fund, and that is something I never thought I'd be able to say. I have approx. 7 months' salary between savings account, ISA and premium bonds. It's only because of generous Christmas & birthday presents from my grandparents, though. I am able to save that money and very good at not touching it, but rubbish at actually saving any of my wages month-on-month.

BarbarianMum · 21/01/2019 21:33

Life is generally not so short that your car might not need a major repair or your boiler break. Holidays are lovely but they're not nearly as relaxing as knowing you wont be torally up shit creek if there's a financial hiccup.