Making savings before it's too late

moneyistooshorttomention · 25 January 2018 at 3:26PM

trailingspouse wrote: »

Cash - noooo!!!

We have a Santander account that pays 1.5% interest, so the longer we leave the money in there, the more interest we get. We also have an Asda credit card which gives 0.5% cashback.

I use the credit card for everything, even quite small purchases now that we have contactless. But we always pay it off at the end of the month.

So - imagine you withdraw £100 on 1st January. That money stops earning interest the moment you withdraw it - but you might not actually spend it for a couple of weeks. If you spend £100 at the supermarket - if you put that on your credit card, you won't be paying the money out of your account for between 3 and 6 weeks (when the credit card is due). So instead of getting no interest, you're getting between 3 and 6 weeks' interest, plus 0.5% cashback.

Using cash - no return between 1st Jan and (potentially) 7th February.

Using credit card - 1.5% interest on the money in the current account for potentially 6 weeks, plus 0.5% cashback from the credit card = 70p

Now, it doesn't sound much, but that's 70p back on every £100 - and that mounts up. Or put it another way, if you could buy something for £100 or exactly the same thing for £99.30, which would you go for?

Errrm....actually....it's a personal decision there. But my own personal decision would be "Ach! It's only £0.70 and how much of my time/thought would I have to devote to saving that?". Hence I briefly tried paying for everything possible on my credit card - and then realised it was taking some of my time/creating extra hassle for me and so I don't do it anymore personally.

It's down to personal priorities obv.

But my own personal priority is to have as much of my time/energy as possible free for "Me - Living My Life as I decide to" - rather than going on "Minor moneysaving admin.".

Each to their own - but I cba personally.

blackcatsx2 · 25 January 2018 at 4:26PM

It’s interesting how different things work for different people but we all still do our best to use money and our time wisely in the way that suits us.
I use a credit card for everything and pay it off in full each month. It does get confusing because statement date doesn’t match month end and as you know I’m not a very skilled financial manager but it works for me. I get vouchers from the credit card company based on spend and I’m going to use them this year to buy presents (instead of buying nice things for me which I might have been guilty of last year). This will help in my quest to spend less on gifts as I massively overspent last year.

[Deleted User] · 25 January 2018 at 4:51PM

I have never used a contactless card and never will, hey I am the one who checks my main bank and cc bank every morning, it only took one fraud to make me extra careful. Most of my payments these days go through third party paypal or amazon. It was for a few £000 and the bank stepped in and re-paid me.

I do also find modern ways interesting, good to read about different methods. My own way evolved over 43 years

and obviously I don`t do envelopes these days but I don`t have an extravagant way of life either

On my KM mission this morning, I found two brand new turbo hair towels in net bags, must have bought a pack of three. Yay, on one side already, will be added to hm socks for christmas presents. I must go and get an empty box sorted, this sort of item is a useful find

tboo · 25 January 2018 at 6:33PM

kittie wrote: »

I have never used a contactless card and never will, hey I am the one who checks my main bank and cc bank every morning, it only took one fraud to make me extra careful. Most of my payments these days go through third party paypal or amazon.

On the subject of contactless cards, fraud is on the increase because of them so I have purchased a pocket to slip them into so scanning them is nigh on impossible.

When they next come up for renewal I will decline contactless and go to the older version of PIN.

I also like paypal and do this on all on line transactions as long as it's offered.

tori.k · 25 January 2018 at 8:28PM

tboo wrote: »

This results is me spending a lot as I don’t stick to the list (me bad) – so I find I don’t big shop there anymore.

)

Have you given thought to an asda home delivery or click and collect to avoid the temptation of the extra deals. Mardatha is having great success with her delivery.

trailingspouse · 25 January 2018 at 8:52PM

Totally agree it's personal preference moneyistooshorttomention.

But it really isn't difficult. I don't have to remember to withdraw cash, the credit card is paid by direct debit - I just reap the rewards.

And as to increased fraud - https://www.equifax.co.uk/resources/identity_protection/how_to_avoid_contactless_card_fraud.html

suki1964 · 25 January 2018 at 11:25PM

tboo wrote: »

I would like to save on the shopping budget but fail miserably.

My nearest Asda is a local one; we don’t have an Aldi in town.

So the alternative is Tesco or Morrison.

We do however have a Lidl but I find it doesn’t have the goods I want so it means shopping in the other supermarkets as well to top it up.

This results is me spending a lot as I don’t stick to the list (me bad) – so I find I don’t big shop there anymore.

I therefore can spot the increases in prices by them which is often weekly.

It doesn’t bode well if you have a tight budget.

I do make savings on bulk buying the loo rolls from the cash and carry as the prices are ridiculous in the supermarkets.

I may have to rethink my menus to fit in with Lidls and then just go with cash - seems like a forward plan:)

I changed my menus to fit around Lidl without really realising it, esp their £2 meat and fish offers.

Our Lidl (NI) , because they support NI farmers, don't really have a lot of choice when it comes to meat and veg so I just have to roll with it and learn to cook things differently. Pork pieces for example , wouldn't have been on my radar back in London, but they are ideal for Chinese cooking, same as belly of pork.

I still use Tesco for cat food ( Tescos is the only one he will eat) soap powder and head and shoulders for example, but the majority of my shopping is from lidl. Last weekend my shop was under £11 there, the week before £35, the week before that £17 with around another £20 in Tesco so far this month

suki1964 · 25 January 2018 at 11:36PM

I use a contactless card all the time, as does Mr Suki. The most you can spend contactless is £30 and only three times a day ( I think )

Banks are very hot on fraud. One card I have, Dankse Bank, won't allow two transactions in the same store on the same day. So if I shop and pay for my shopping using that card, then decide I want a packet of fags from the ciggie counter ( I've stopped now ) the card won't Work

Santander are so security conscience, that when we were paying for a car last week, even with them sending a one off code for the transaction , they froze our account until we received the letter telling us that we had to ring the fraud dept ( means we are still waiting the delivery of said car

)

moneyistooshorttomention · 26 January 2018 at 8:08AM

Admits I don't really see the point of a contactless card anyway. In what way is it supposed to benefit us?

When my bank needed to give me an updated debit card - they duly sent me a contactless version. I duly rang them and told them it was about to be cut up by me - and could they please send me a standard type replacement debit card.

I did duly cut up the new contactless one and duly received a new standard one from them.

Though (for anyone who doesnt want to do that) I believe one can "disable" the contactless part by cutting into a strip around the outside of the card. It "breaks the circuit" or something.

suki1964 · 26 January 2018 at 10:08AM

I use it as it’s quicker. Just touch and go. Seriously instantaneous, esp in lidl where their pin machines take ages

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Making savings before it's too late

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