How to fall in love with saving money

cathybird · 20 October 2013 at 7:02PM

... and if anyone can tell me how ... please feel free to give me some pointers

Not to put too fine a point on it, I'm a bit of a spendthrift, but determined to change my ways. Not that I've got loads of cash to spend - I don't - which makes it all the more important to get a grip. Not too badly off however, no debt, except of the mortgage variety. But far too fond of frittering money on "time-saving" luxuries like buying a nice lunch. I've decided to start this daily diary because I want to get some proper money in the bank, but, more importantly, get control of what I'm doing with my money, and on a permanent basis - I can feel the cold winds of retirement starting to howl in the distance .... So it's time to set some goals and get down to it.

Goal 1: Save £1,500 by Christmas 2013

moneyfoolish · 20 October 2013 at 7:14PM

Hello Cathy. I don't believe you can be taught. I firmly believe it's something within you. I've always had a reasonable salary (I worked in IT and only retired in August after working over 3 years past my retirement age) but I never had the slightest problem saving. In fact, I've always had the reverse problem i.e. spending! There's hardly a thing that I've ever bought for myself that was bought because I wanted it as opposed to needed it! It's always been a great annoyance to my wife that although I could well afford it, I would almost never get rid of anything until it was "worn out". It was also always drummed into me by my parents that you NEVER bought anything on credit and other than a mortgage I have never owned anything on credit and never would even though you will find some of the people on here who are more financially astute who will say that is a great mistake. It certainly provides "peace of mind" though!

brasso · 20 October 2013 at 7:20PM

Keep a written log of everything you spend. Every penny. By some magic, this always cuts down on spending.

cathybird · 20 October 2013 at 7:31PM

russell_anderson wrote: »

Hello Cathy. I don't believe you can be taught. I firmly believe it's something within you.

Russell, I'm hoping on this point at least that you turn out to be wrong

cathybird · 20 October 2013 at 7:33PM

Brasso, that's a good point and it works with everything actually ... if you want to exercise regularly keep a training diary etc. So I will be recording my daily spend here. And my budget (my food budget for November looks at this point as though it will be around £30 per week becos I want to save £1,000 of my £1,500 in November). But don't want to bore people on here solid so I'll be keeping a written diary with the details of all my spend at home. What I'll post here will be the daily amount.

cathybird · 20 October 2013 at 7:35PM

Russell, btw, I do need to learn how to save and I'm hoping that it will maybe in time give me a kind of satisfaction that may lead me to untrain myself from my spendthrift ways. I reckon people can change, if they try. I hope so.

moneyfoolish · 20 October 2013 at 8:04PM

cathybird wrote: »

Russell, btw, I do need to learn how to save and I'm hoping that it will maybe in time give me a kind of satisfaction that may lead me to untrain myself from my spendthrift ways. I reckon people can change, if they try. I hope so.

To be more helpful, Cathy. My method was always to work on a monthly basis and move any excess money in my current account into a savings account which I never touched. I have never worked out what I spent or saved in my life. Some months I had money to move, other months I didn't. if I ever thought I was in danger of spending more in a month that I had in my account I cut down my spending immediately. Good luck whatever you do.

gallygirl · 20 October 2013 at 8:31PM

russell_anderson wrote: »

Hello Cathy. I don't believe you can be taught.

Possibly Russell is right - you can't be taught, but you can learn, which is much more proactive and long lasting.

Have a go on HERE - if that expensive lunch costs you £5 a day and you earn 30k you are working for over 3 weeks of the year just to pay for it :eek:. Those are the type of things you can teach yourself.

Check every bill - can you get any cheaper tariffs etc? Electric and gas are always in the news but what about water? If you live on your own you'd be better off with a water meter - even then some co's, such as Anglian Water (:kisses3:) do an even cheaper tariff if you're on your own.

Are you on the best mortgage deal? What about pension provision? Educate yourself on this - that's far more important in the long run than whether you can get a 20p off coupon for something (but if you do get a 20p off voucher, transfer that money to savings

).

Good luck.

jimjames · 20 October 2013 at 11:36PM

cathybird wrote: »

Russell, btw, I do need to learn how to save and I'm hoping that it will maybe in time give me a kind of satisfaction that may lead me to untrain myself from my spendthrift ways. I reckon people can change, if they try. I hope so.

If you are determined to then yes you can learn - if you want to.

I think it does come down to a state of mind and thinking that small amounts can make a difference. It is very easy to say that a £2 coffee every day is only £2. When it adds up to £40 per month or £480 a year that starts to put it more in context.

The same for fuel. In our area at present there is a 16p difference between the cost of a litre of fuel at various garages. On a 60 litre tank that is nearly a tenner. All for taking care where you buy. It is very easy again to see it as "only" 16p difference but most people would be rather put out to have that tenner taken off them if they had it in their pocket but there are still cars at the expensive garage.

There was a saying about looking after the pennies and the pounds look after themselves. With that sort of frame of mind it is easier to build up savings.

It can also help to have a DD going directly out of your current account to a savings account after payday. You then don't miss the money or be tempted to spend it so can build up your savings that way.

The main thing is that you've realised you want to change and I think that is actually the hardest bit. so good luck!

Eco_Miser · 21 October 2013 at 12:24AM

Hello Cathy, sorry, I don't know how to fall in love with saving money; I've just been doing it for 57 years:).
Perhaps reading what I do will help you work it out for yourself.
I'm a bit like Russell, except lower paid and I retired early. The money just piles up in my current account until I move it somewhere better . (Right now, there's nowhere better short term, so it just piles up:T). Of course, if you're a spendthrift, just leaving spare money in your current account could be a big temptation - better to move it to where you can't touch it.

You say you intend to reduce your food budget to around £30 a week - well my food spending is £60 - £70 a month and that includes an ice-cream every Sunday and other little treats. It also includes lots of reduced to clear bargains.

Whenever I feel tempted to spend I ask myself "Do I need it" and if the answer is no, walk away. If the answer is "yes", could I get it cheaper elsewhere? The answer to that is usually "yes", so I walk away, and with a bit of luck forget to check prices elsewhere, so don't spend anything!:):)

I keep a record of all my spending so that I know where the money's going, and know that I can afford a few little luxuries.

These boards are full of money-saving techniques, so learning to save is straightforward, if not easy; but falling in love with saving is a different matter. Perhaps it will come when you see how much you have saved, and how much interest it is earning; or perhaps when you buy something expensive for cash and know you don't have to scrimp and save to keep up the repayments.

Good luck with your change in lifestyle.

lawlie · 21 October 2013 at 10:18AM

I completely understand how you feel. I am in the same boat although perhaps worse (I just spent 400 pounds on a pair of shoes!). I think I would be considered a high earner, but I am absolutely HOPELESS at saving, it's a disgrace.

I have figured out that for me, the issue is that I am impatient, and savings is something which doesn't really give you an instant buzz like a purchase would, or booking a holiday.

Same as you, I am going to start to record every single penny I am spending.

Let's hope we both manage to do this! :beer:

How to fall in love with saving money

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