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How much spare money do you have?


Commander

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Not in absolute terms, but in terms of, if you lost your job, how long could you keep living the way you live now, before you had to start making compromises or selling stuff? I have about 4 months worth of after-tax salary saved up in cash, but I've no idea if this is good, bad, normal, etc? And as this is a car forum (and this is the real reason for the question) how much of that buffer would you eat in to if you wanted to sell your Z and buy something more expensive?

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About £200 at the mment! As Ive had a bad run of bills for the Z and a holiday! I pump a lot of my extra cash straight into my mortgage though as money in the bank doesn't earn much interest. Car is paid for clean and clear as is my motorbike so if I needed cash I could raise some. It does seem a bit hand to mouth at the moment though!

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Meh monies there to be spent, enjoy it and make the most of it.

 

That's how my income goes anyway :lol:

 

This

 

Money goes in, money goes out. I dont see the point in saving money when I could drop dead tomorrow ;)

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ive got about £6000 of supercharger laying around :lol: worse comes to worse I could shift it, i never get anything on credit, so i pay outright for everything (except mortgage) in the hope that if I have to I could raise a lot from shifting stuff but generally try to keep 3 months salary in limbo waiting for rainy day

Edited by jumping350
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My financial situation has varied lots over the years. When I was younger i used to spend every penny I earnt (and more). But then after being made redundant and going from earning a decent wage to just getting £50 a day doing labouring, I realised it would make sense to have a bit of a backup plan. So then I used to always try and keep 6 months salary in the bank in case anything happened.

 

This "6 months" float has gone up & down. When I moved house a few years back I had zero in the bank, 2 mortgages and a £15k loan. But I was juggling 2 properties and until the first one sold things were very tight.

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I have some in the bank and insurances to provide for the family in case of the worst..

 

Last summer at just 47rs old I suffered a massive heart attack, blocked main artery which they called the widows pass. Basically 15 minutes later to the hospital and I wouldn't be here !

 

Life is lived much more healthily now and trying to cut down on work.. Most of all enjoying life, hence the new Z........

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Could probably be quite happy for a good 6 months if I were to lose my job tomorrow. plus car is all paid for, so could sell that and have another 6 months if necessary. Would like to keep a buffer, although considering blowing most of my savings on a new car - but then again if push came to shove, I could sell that new car and recoup a lot of the savings. I have no debt other than mortgage.

 

as for selling zed and buying something more expensive, if you're confident in your job security and know you'd be able to save the money again, i'd say spend the cash - but leave yourself a small buffer just in case - in my case will leave £2000 in the bank in case the car I buy immediately needs new turbos for example!

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No idea. She does the saving, I do the spending.

 

ditto but ............ I do the earning, she does the spending and I do the spending that she knows nothing about :blush:

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Money has always burnt a hole in my pocket.

 

That is until this year, when i decided to save for a house deposit. I've now definitely caught the saving bug and i'm a complete scrooge. I intend to keep a £5k float once the house move has completed and the first year of ownership is out of the way (lots of costs, and furniture to buy, etc).

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My lifestyle is now exceptionally modest but that's the flip side of trying to set a business up I guess.

 

Quite honestly I just haven't got a clue because money is so up and down in the motor trade.......all I'd say is that anyone who's considering changing industries and going from employed to self employed needs to be afraid.....be very afraid! :lol:

 

Much as I love it, it's pretty much terrifying on a weekly basis as to what work you'll get etc.

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Don't tell me you've blown through all that Lotto money you won already Commander. :dry::surrender::lol:

 

Haha, well remembered! Some of it has gone on holidays and on the M3, but I've still got about half left. I've never really had this much money 'going spare' before - in the past it has always been for house deposits, etc... but now I've got a decent house, two fast cars, etc... I don't know what to do with it?! Having good money in the bank is very reassuring, but I can't stop myself looking at E90 M3s, M5s, Caymans, 911s, Range Rovers, XKRs, etc... Keeping the cash seems the sensible thing to do, but I'm not sure it's the right thing to do, hence the question about what everybody else does... Spend or save?!

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Could probably be quite happy for a good 6 months if I were to lose my job tomorrow. plus car is all paid for, so could sell that and have another 6 months if necessary. Would like to keep a buffer, although considering blowing most of my savings on a new car - but then again if push came to shove, I could sell that new car and recoup a lot of the savings. I have no debt other than mortgage.

 

as for selling zed and buying something more expensive, if you're confident in your job security and know you'd be able to save the money again, i'd say spend the cash - but leave yourself a small buffer just in case - in my case will leave £2000 in the bank in case the car I buy immediately needs new turbos for example!

 

This! I have 2K in the bank at all times.

 

Luckily in my realm of work I could get a temp/contract job pretty easily. My motto in life is spend no more than 1/3 of your annual wage on a car, this keeps both my car life and home life happy.

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Don't tell me you've blown through all that Lotto money you won already Commander. :dry::surrender::lol:

 

Haha, well remembered! Some of it has gone on holidays and on the M3, but I've still got about half left. I've never really had this much money 'going spare' before - in the past it has always been for house deposits, etc... but now I've got a decent house, two fast cars, etc... I don't know what to do with it?! Having good money in the bank is very reassuring, but I can't stop myself looking at E90 M3s, M5s, Caymans, 911s, Range Rovers, XKRs, etc... Keeping the cash seems the sensible thing to do, but I'm not sure it's the right thing to do, hence the question about what everybody else does... Spend or save?!

 

If you're pretty sorted and have achieved what you need to achieve materially, then you should maybe consider how to get out of the rat race. Invest in property or the markets, anything you can do to accelerate how quickly you can pay your mortgage off. Even overpaying your pension is a great investment as it's tax free money. If you can semi-retire by the time you're 50, you're laughing.

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I'm rubbish at saving. I think my habits are very much influenced by events in my past.

 

My Dad was in the RAF for 20 odd years then became an aircraft engineer. He was a model of financial restraint - always working, always saving for the future and never really treating himself to the things he wanted (such as a nice motorbike). He often talked about the things he would do in the future. Then one night, without any warning, he died of a heart attack. He was 42, not overweight, didn't smoke and hardly ever drank.

 

I am completely the opposite. I pay my bills and meet all of my financial commitments but the rest of it gets spent on having a nice life with my better half Jane and the things I want.

 

I totally get the point about saving for a rainy day. I've been with same public sector employer for 20 years now and it's no longer the case that these jobs are secure - I've faced possible redundancy twice in recent years and I expect it again after the election. The one good thing about public sector employment is that the redundancy payment is a good cushion. Due to length of service I'd get a year's pay with the first £30k untaxed. I feel for people in the private sector who don't have that kind of protection.

 

I know it's a cliche, but my past has taught me that life is too short...

Edited by sipar69
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I did have 2.5k in my savings. But I have just cleared a credit card. Just have a little loan left on the zed and then I'm debt free. I'm rubbish at saving. But I do find once you get past about a grand in your savings it starts looking a lot better than a few hundred quid and pushes you to put more in

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