Discussion
I realise this is a very broad question, but what would people say is a decent amont to have saved up for emergencies etc?
I'm thinking five/six months of bills as a minimum at the moment.
I've got a loan at 3.2% for another three and a half years. Part of me thinks pay that off ASAP, part of me thinks let it run as the interest is only £700 over the whole four year term. What are people's views on that? I can't really afford to save and pay off the loan at the same time and would rather having savings for house/car repairs etc.
Thanks
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I'm thinking five/six months of bills as a minimum at the moment.
I've got a loan at 3.2% for another three and a half years. Part of me thinks pay that off ASAP, part of me thinks let it run as the interest is only £700 over the whole four year term. What are people's views on that? I can't really afford to save and pay off the loan at the same time and would rather having savings for house/car repairs etc.
Thanks
. red_slr said:
It all comes down to your own variables.
How risky if your job? Police officer so fairly secure (although in my probation but as long as I don't do anything wrong ill be safe!).
How long might it take you to get another job? I could get something that pays the same fairly easily.
Is your job recession proof? Yep!
How big are your outgoings? £550 a month for everything with the house, £420 in loan repayments, rest is for fuel, days out etc (£1,400 take home after tax, NI and pension)
Do you have access to credit i.e credit card?No...id like to stay away from this
Do you have long term medical / sick cover with work?
Etc etc. six months full pay, pay into a group insurance which then gives me another six months full pay. Also get a load of other things with this.
Personally, I have always been in the 6 month outgoings camp.
In more recent times 3 months is usually considered ok, however I remember the recession in 2009 and there were people out of work for months. Sector depending of course. In the US people could not even get basic jobs like pizza delivery. Savings cashed in at 50% loss which then only lasted them a few months and no job. Property worth nothing and no one had money to buy cars or boats etc so it was all recovered by the banks. Snowball effect of people buying houses they couldn't afford.
I have also seen a friend have a bad accident and end up off work for over a year. Had 6 months full pay with work but then SSP and had no EF to speak of so by month 7 was basically screwed.
I think I'll aim for six months to start with. It would only be £3,000 approx so not a huge amount. How risky if your job? Police officer so fairly secure (although in my probation but as long as I don't do anything wrong ill be safe!).
How long might it take you to get another job? I could get something that pays the same fairly easily.
Is your job recession proof? Yep!
How big are your outgoings? £550 a month for everything with the house, £420 in loan repayments, rest is for fuel, days out etc (£1,400 take home after tax, NI and pension)
Do you have access to credit i.e credit card?No...id like to stay away from this
Do you have long term medical / sick cover with work?
Etc etc. six months full pay, pay into a group insurance which then gives me another six months full pay. Also get a load of other things with this.
Personally, I have always been in the 6 month outgoings camp.
In more recent times 3 months is usually considered ok, however I remember the recession in 2009 and there were people out of work for months. Sector depending of course. In the US people could not even get basic jobs like pizza delivery. Savings cashed in at 50% loss which then only lasted them a few months and no job. Property worth nothing and no one had money to buy cars or boats etc so it was all recovered by the banks. Snowball effect of people buying houses they couldn't afford.
I have also seen a friend have a bad accident and end up off work for over a year. Had 6 months full pay with work but then SSP and had no EF to speak of so by month 7 was basically screwed.
Just remembered that I've got a savings thingy through work. £1 a day taken out of my wages before I get my wages so don't notice it. Can't touch it for ten years. Allowed one account a year, next year it will be £2 a day etc.
After ten years ill get the lump sum back plus a bonus if the investments have gone well. (Will get what I've put in no matter what though).
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