Sunday, 21 February 2021

Money ...

Savings! Do you have any? The great 'they', recommend you save a minimum of 3 months of salary. It should never be touched until needed. Occasions when needed might be long term illness, death, losing your job or the current pandemic. Personally, I think you would be better to save for up to 6 months. If this pandemic has shown us anything, it is how quickly you can get into debt after losing your job (or being furloughed on far less money), which can lead to the loss of a roof over your head.

If you have never saved before, preferring instead to use every penny every month enjoying yourself, maybe this has been a wakeup call. I really, really hope so but to be honest, I'm not wholly convinced of that. So many people poured out of shops, overloaded with many bags of clothes in particular, once the first lockdown ended.

Talking of savings, we have been taught a salutary lesson recently. We have an instant access savings account that for some reason, got locked out of. Now luckily, we didn't need to access it at that particular time but it took 10 days to be sorted out. It was their problem, not ours and so far, no apology has been received. What if it had been our bill/mortgage/food account, how would we have paid those bills? Lesson learned.

We have now opened a new account, with a different group and some money from our current savings will be diverted into that.  Hopefully, that will be the problem sorted and we will always be able to access savings when needed. If you are in the situation with all your instant access savings in one basket, might it be worth your while distributing them into other accounts?

Luckily, when DB retired, he opted to take his government pension weekly. If ever there is a week when money is tight, we know some is coming soon. If I have the option when my time comes, I shall do the same.



 

 

12 comments:

  1. It's a shame it takes us all until our later years to be able to wise up to the need for this. It's oh so easy to see your pay in the bank each week or month when you're younger and think of it as 'spends'. With age comes wisdom and after paying my way out of the debt accrued with my first husband I became so much more careful from my 40s onwards.

    I have a current account, a couple of savings accounts (with different banks), the necessary company accounts and a joint account. We have done okay during the lockdowns as our company is one that cannot be closed or cut back in any way, and most of my family are key workers of one type or another so their earning capacity has remained, although at risk to themselves health wise, two having caught and recovered from Covid. But this means we have not had to help anyone in the family out at all. Instead we have donated to foodbanks and local causes who perhaps are not in the fortunate place we are.

    With the sale of our house and the purchase of a replacements we will be putting any profit into our individual savings accounts and have a small cushion for our retirements as I have no private pension fund, although Alan obviously has had his military pension since he left the Navy.

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    1. I think it pays to keep thinking ahead. Death of a partner springs to mind and the other what if situations that we can close our minds too. I learnt the hard way, decades ago and another lifetime, to now have my own accounts. DB has always recommended it from day one!

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  2. When my husband retired three years ago he was told that you now have to have your pension four weekly.

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    1. That’s a bummer, never mind. Thanks for the information.

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  3. My mum & dad get their state pensions weekly, paid into the bank. As for savings, ours have dwindled since March 2020. My self employment stopped and hubby was furloughed - however only on basic pay, so we lost about £800 a month from his wages alone. I still got my small NHS pension, as that was guaranteed. Things have picked up now though, I found a job back with the NHS on PAYE basis and husband is back at work, but it's hard getting the savings back up.

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  4. My husband and I get our pensions every four weeks, didn't have any other option. Fortunately they are paid the same week on Weds and Thurs. Our main savings account is with a different bank to our current account.

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    1. Certainly pays to be flexible doesn’t it?

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  5. Yes, I agree - always have a secondary bank account (eggs & baskets etc). Our first emergency fund was created slowly by putting away $20 week - we still do and this emergency fun is now up to 12 months expenses

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    1. Savings and bank accounts are both joint and separate but savings locked away. This was our only available savings but we now have two so that should help.

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  6. I've always been a saver and thank goodness I have. Interest is rubbish these days but the 'rainy day' may come at anytime!

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