Tag Archives: challenge #16

Challenge #16 – completed

9 Feb

I’ve completed another challenge!

Challenge number 16 on my list was to save money for a rainy day. I’ve always been good-ish with money but I’ve never really had a good amount of savings to draw on in case of an emergency.

I’ve read several sources that say it’s a good idea to have at least three months’ salary saved up. I have no idea why it’s 3 months rather than two and a half or even 5. It seems like an arbitrary amount without a lot of reasoning for it – a bit like the recommended 10’000 steps a day that are supposed to keep you fit!

As that’s what’s recommended that’s what I’ve done. I started saving last year after I started a new job and put away a little bit each month. If I’d been frugal during the month then I could save a bit more. It’s surprising how quickly an amount each month manages to grow into 3 months’ salary. Luckily I didn’t need to dip into these funds during the past year so it was just a case of save, save, save.

I’m hoping not to be forced into using these savings in the near future but we are in the middle of a restructuring process at work so I can’t honestly say for sure that this is what will happen. Perhaps I find myself out of work again, perhaps everything is business as usual. It’s hard to know or guess what the future will hold in the next few months but I do feel slightly better knowing I have something in reserve for a case like this.

If you don’t have money squirrelled away for the future, I would recommend doing it. Saving a little and often makes the whole process virtually pain free!