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Paul1977
4983 posts

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  #2653077 10-Feb-2021 15:38
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We don't have any significant cash savings to fall back on as we've prioritised paying off the mortgage faster. Never made sense to me having savings earning practically no interest when it could be used to pay down the mortgage instead. However, we do have enough credit available at the floating rate to tide us over for a year I'd say. We're also paying well more than the minimum fixed mortgage payments, so could lower those payments by up to 60% without penalty (except of course the long term penalty of paying more interest and having the mortgage longer).


 
 
 
 

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Wom

Wom
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  #2653143 10-Feb-2021 16:12
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it's good to think about this sort of stuff from time to time

I currently have equivalent of 16 weeks pay, and my fiance has about 14 weeks pay, in our joint emergency fund. If I'm made redundant, I will (currently) get 27 weeks pay, which increases each year I spend in my job. She will get about 14 weeks if she is made redundant.

We can survive (just) on my income alone, but not vice versa. I have income protection, trauma, and life insurance which will support us / her if something bad happens to me, but she doesn't have anything to support me if the worst happens, something we are looking into now that we have a mortgage (I was surprised life insurance isn't compulsory to obtain a mortgage)

We did have retirement savings (my work provides an unlocked super scheme alternative to kiwisaver), that would have covered me for 1.5 years of pay if I hadn't just withdrawn all but $1k for the deposit on our house. Same with her kiwisaver, that only has a grand or 2 left in it now, but that's near impossible to withdraw from until you're in extreme hardship or buying your first home


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