WTBSEs 'Starting From Scratch' Savings Diary.

WantToBeSE · 9 November 2013 at 12:46PM

Welcome to my savings diary

A little about me. I am 34 (eek!), a single mother of 2 and work as a self employed cleaner.
Earlier this year i became debt free and decided to start saving some money.
I saved about £200 and then my car failed its MOT in spectacular fashion, so my savings went back down to £0.

Now i am on a mission to save £5k, or as close to that as possible.
I am aiming for:

[STRIKE]£1500- Car (i need a car for work, so i want to have enough in the bank to buy a
cheap second hand one).[/STRIKE] Done

£3500-Emergency Pot.

It wont be quick, but i am just happy to be able to save something

jimjames · 9 November 2013 at 12:57PM

Well done! In the current climate and especially if you are on a low income, being able to save anything is a great achievement. By just having some savings already you are doing better than many people. I see savings about being able to give yourself options. If you have money saved you can fix the car when it breaks, you can take a holiday or treat the kids. Without savings you can go into debt to do those things but it will cost you far more and may not be sustainable.

Keep going and that £5k will get closer and closer

WantToBeSE · 9 November 2013 at 1:32PM

Thanks jimjames,

i find it easier to save if i have something in particular to aim for. At the moment, i have the car in mind so my 1st aim is the £1500. I am currently treating it the same as i treated the debt- only spend what i NEED to spend and throw the rest at the savings pot.

once i have that £1500 in the bank, i am going to allow us a few treats, but i am very aware that i cant work unless i have a car. So, the car comes 1st.

You are right, savings ARE about being able to have options, i definitely agree!

Pineapple88 · 9 November 2013 at 1:55PM

Good luck WTBE!

Have you made sure that you have the best savings or current account? For current accounts especially there is free money to be had if you pay in a certain amount each month - Halifax Reward offeres £5 per month if you pay in £750, and Lloyds Vantage offererss interest on balances up to £3000 if you pay in £1000 each month (it doesn't have to stay there though and so you can use it as a savings account).

WantToBeSE · 9 November 2013 at 2:07PM

Thanks for the advice Pineapple

Because of my history with debt, i have a shocking credit score, so i dont think i can open other bank accounts at the moment. However, i am planning on improving my credit score. I have a credit builder credit card (capital one) and will spend and pay off in full every month.

At the moment i have a current account (basic account)- this is my general household spends income etc is organised. All of my SO's and DD's come out of this one, and all payments from clients are made into this one.

I also have an e-savings account. This one is for my emergency savings (when i get around to using it!). At the moment i just put a few £ in it at the end of every week. If i have £7.56 (for example) in my basic account at the end of the week, then £5 goes straight into my ISA (see below) and the remaining £2.56 goes into this one.
Once i have the £1500 saved up for the car, then i can put some more money in this e-savings.

ISA- This is the 1 that i am concentrating on at the moment, as it's where i am currently saving up for the car (and will also be where i put the rest of my savings for moving house etc).

cathybird · 9 November 2013 at 3:07PM

hi WantToBeSE, will be watching your journey with interest becos I'm trying to save up £1,500 too - by Christmas, is the goal. And after that I'll be setting another savings goal for next year, so hopefully all we would-be savers can cheer each other on.

WantToBeSE · 9 November 2013 at 4:12PM

Hiya Cathy, i have been reading your diary with interest! It'll be great for us all to have some moral support.
I think that on your diary i read some comments about how spending can alleviate boredom. I totally understand this!
I have now started trying to fill my time with free things. They may not always be exciting (think housework, DIY and all those little jobs that you mean to get around to doing but never do!) but it stops me spending.
Also we go out walking when we can. The older son (now 14) moans about this, as it's not exactly fun for him, but we all enjoy getting some fresh air when we can.
Also we have movie nights. My friend was recently having a clear out of her DVDs and gave us 10 of her old ones for free! So i bought a huge packet of popcorn kernals and we make our own popcorn and have movie nights.

3 of my clients should be paying me next week, so i should be able to save about £200..but we'll see.

Anyway, i am rambling on now! Great to have you on board

cathybird · 9 November 2013 at 6:10PM

WantToBeSE wrote: »

Hiya Cathy, i have been reading your diary with interest! It'll be great for us all to have some moral support.

Aw thanks

:):)

Also we have movie nights. My friend was recently having a clear out of her DVDs and gave us 10 of her old ones for free! So i bought a huge packet of popcorn kernals and we make our own popcorn and have movie nights.

That's a great idea, home-made popcorn is much nicer (and cheaper) than the cinema version!! :eek:

WantToBeSE · 9 November 2013 at 7:36PM

cathybird wrote: »

Aw thanks :):)

That's a great idea, home-made popcorn is much nicer (and cheaper) than the cinema version!! :eek:

The popcorn kernels were asda 'chosen for you' and cost £1 for 1kg

They last ages and ages. Normally we just sprinkle sugar and cinnamon over ours

Thrugelmir · 9 November 2013 at 11:23PM

WantToBeSE wrote: »

I saved about £200 and then my car failed its MOT in spectacular fashion, so my savings went back down to £0.

Doesn't matter. You've broken the cycle of borrowing money and therefore incurring interest charges. Having savings make life far easier and less stressful.

Eco_Miser · 10 November 2013 at 12:25AM

Congratulations on not having to borrow money to fix your car. When you can open other accounts, a Nationwide Flexdirect account will be better than Lloyds Vantage, as it pays 5% on any amount up to £2500, provided you meet all the conditions.

WTBSEs 'Starting From Scratch' Savings Diary.

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