not much money to save - any advice??

chicklet_2
chicklet_2 Posts: 21 Forumite
in Savings & investments
Due to being a broke, single mum, I can only afford to save £30 a month. It's not intended to be saving up for holidays or anything, but to eventually be a sort of safety cushion in case of redundancy etc.

At the moment, I've got it going into an ING account but is this the best place for it?! I am really new to all this money saving stuff so any any advice would be very gratefully received!! ???

Comments

  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    Do you pay income tax? and if so, do you know what rate you pay?
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Chicklet, welcome to the moneysaving site. Its nice to have you aboard!!!!

    You may not have much money to start off with, but with a little thought and careful planning you can make it grow into something larger.

    Can i head you into this thread:

    http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Families;action=display;num=1084217741

    It may help you with family budgetting, and may give you a few ideas take on board. In my case, its the little savings i make, that mount up to something i can be proud of! I am still working on it though, as i am impatient!!
  • Leia_Stephens
    Leia_Stephens Posts: 231 Forumite
    Don't put yourself down, chicklet :-*.

    I am currently saving £30 a month for my nephew and since March last year it has built up to almost £450 ;D.

    I'm sure most moneysavers start off small, but small savings made regularly and compound interest certainly adds up to quite a reasonable sum over time ;D.

    Good luck with the moneysaving :).

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • chicklet_2
    chicklet_2 Posts: 21 Forumite
    Hey, thanks for support. I will have a look at that link, looks good. I'm keen to get my finances in order and could definitely do with looking at my budgeting.. :-/

    Lisyloo, erm, yes, I pay income tax and, due to piddliy salary, its basic rate income tax, so 22%, I guess.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    chicklet also look at this post for help.

    http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Oldstyle
  • lisyloo
    lisyloo Posts: 29,610 Forumite
    Name Dropper First Anniversary First Post
    You will probably be better off getting an ISA.
    You don't pay any tax on the interest in an ISA.
    Look for one that gives you instant access to your money so that you can get it out if needed.

    If you earn between about £7K and £36K then you will be paying 22% tax, so you loose 20% of your interest in tax in an account which isn't an ISA.

    Mine is with safeway (abbey national) paying 4.80% but I suspect there imght be something slightly higher than that around.
  • DiggingOut
    DiggingOut Posts: 770 Forumite
    Abbey postal, 5.1%, likely to go up with today's rate increase.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
  • chicklet_2
    chicklet_2 Posts: 21 Forumite
    Thanks for advice.. I'll have a look at these. :) Bit of light reading for the weekend. ;)

    Have thought about ISA's in the past but always assumed you had to pay in more than £30. It might help if I read the details properly in future!!
  • Leia_Stephens
    Leia_Stephens Posts: 231 Forumite
    No, it is alright paying £30 into an ISA regularly - I am currently paying £25 into mine monthly :), provided you don't pay in more than £3k in a financial year that is.

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
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