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If you have followed the advice in my previous posts, you should now be debt-free, contributing the maximum to your pension to take advantage of your employers contributions, have all your expenses reduced as much as possible and have a certain amount of money left over at the end of each month to improve your financial well-being. The next thing you should be thinking about is how to make best use of that leftover money.
The general advice here would be to create a 'Rainy Day Fund' first. Basically, this involves saving a certain amount of money in a high-interest savings account so that you can handle unexpected expenses. This could be anything from your fridge/freezer needing replacing to your employer announcing unexpected job cuts and you being out of work for a period of time.
The amount needed will vary depending on your circumstances but usually I would advise to have anywhere from 3-6 months take-home pay in a high-interest savings account. This will offer you the peace of mind of knowing that you and your family can handle 3-6 months of daily living expenses should you lose your job or leave work due to pregnancy or illness. It also means that, if your oven suddenly breaks down, you can purchase a new one immediately without affecting your day-to-day finances.
Depending on how well you've done in preparing your budget, it will probably take about a year to save 3 months take-home pay and you may never need to touch it. Even if you never touch it, that one years saving will offer you a lifetimes peace-of-mind. You should think of it as your personal insurance policy that's making you money (in interest) instead of costing you money.
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