Tuesday, 22 January 2013

the safety net

The goal for this year is to bulk up the Emergency Fund, as I thought I'd better mention something about money saving. We have a basic aim which will just happen - we became debt free for the second time (don't tell Dave Ramsey) last year so the money we were using to pay off the debt is being redirected to savings. Then we have an additional aim to save 80% of that again just from day to day savings.

We're not car boot folk, we don't have enough belongings to sell any really, I have never been on ebay so the savings will be from not spending rather than earning. As I've said we've been through the initial student loan-credit card-car loan debt free frenzy where we sold things, took on work, cut to the bone. That's not where we are for the time being and hopefully never again. We turned our finances around by paying off the debt, overpaying/ reducing the term on the mortgage and switching to just wanting less. Well, maybe not wanting less but certainly buying the right things and just admiring other nice things. 

Doing that got us where we are today, by the seaside. Which is where the other debt came in. We'd been debt free for 3 1/2 years, saved up for and bought our shiny car (took 2 years) then we put the house on the market and waited. The area we lived in was good for the town, the neighbours, not that great so the house needed to be sold well. So when we were at that point where we thought no-one would ever buy we borrowed some money after much soul searching and had a new kitchen fitted. We spent too much really but we sold the house Am I rationale thinking this in order to make myself feel better, almost certainly but I don't care.

It meant we could move from one of the cheapest areas of the county to one for the more expensive. Paying down the mortgage over a few years meant we had a large deposit which took the sting out of the large price tag. Everything is more expensive here but we love it. For the first time we have a garden, we have big skies, peace and quiet and I have achieved my dream of living by the seaside.

That was spring 2010, then we had a General Election and the landscape changed. Now the EF needs to be bigger than ever for when the redundancy letters come round again if we're on the list. 

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