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Does Anyone Not have Savings?
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Cotta
Posts: 3,667 Forumite
Hi All,
It's been a while since I have had any notable savings. Over the past number of years I'm ashamed to say that it's been payday to payday.
This year I have overpaid on my mortgage to the tune of 4k and I've just changed jobs, this now nets me an extra £339 per month.
What I am wondering is have others struggled to build up their savings and what things did you do to get back on top?
Interested in your responses.
It's been a while since I have had any notable savings. Over the past number of years I'm ashamed to say that it's been payday to payday.
This year I have overpaid on my mortgage to the tune of 4k and I've just changed jobs, this now nets me an extra £339 per month.
What I am wondering is have others struggled to build up their savings and what things did you do to get back on top?
Interested in your responses.
If you haven’t already, join the forum to reply!
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Nothing to be ashamed of. For many years, with a mortgage, young children, a period of ill health in the family, bills etc there was nothing left at the end of the month. Maybe just two hundred pounds in a building society account just so psychologically there was some for a small emergency.
You can't save if you don't earn enough to save. We took extra work, hubby doing two jobs, me taking in work at home. Always been extremely thrifty.
Gradually, things improved. Start small, don't have big goals that you can't reach. Just start squirrelling what you can away. It then becomes a habit.
This site has been a huge benefit to our family finances over so many years. Cutting costs, switching utility suppliers etc all add up.
We're never going to be rich but we do have a good standard of living in my eyes but then that is all relevant.
Keep up the good work!0 -
Hi All,
It's been a while since I have had any notable savings. Over the past number of years I'm ashamed to say that it's been payday to payday.
This year I have overpaid on my mortgage to the tune of 4k and I've just changed jobs, this now nets me an extra £339 per month.
As has been said no need to feel ashamed at all! You have actually been 'saving' £4000 at your mortgage rate.
Opening a TSB Current Plus account to use as your main current account would be a good start - currently 5% interest up to £2000, though this may change. Keep it simple. Best of luck, you've chosen a great time to think about saving, with your increased income.0 -
Yep, nothing to be ashamed of.
Before overpaying your mortgage though, you may consider building up an emergency fund of 3-6 months outgoings.
Unless your overpayments are such that you can get them back in an emergency.0 -
It's far more common than you'd think. I know people with multiple children who wouldn't be able to meet their obligations for even a single month if they lost their jobs. Sad but true, good on you for wanting to move away from this less than ideal situation!0
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Make sure that you are paying the least possible for your utilities etc.
Consider a bills account that pays cashback - Santander 123 Lite or Natwest rewards if you would benefit.
Opt to pay Council Tax over twelve months.
Build up your emergency savings in high interest paying current account(s) - remember that it is usually possible to have sole and joint accounts.
Aim for six months' salary.
You could also use one such account for holidays/treats.
Pension? Pay in the maximum that gets you a matched contribution.
Get a new state pension statement.
After the above, consider using a Stocks and Shares ISA and making a regular monthly contribution.0 -
Lots of people don't have savings. In the early years when our children were small we lived from payday to payday, luckily never in debt though. As I returned to work after having children I started to put 25% of my salary into savings and my OH put his bonus away each year and that paid for our annual holiday. We used our pensions as our long time savings pot. It was only when our mortgage was paid off we put our mortgage payment away in a savings account and as children moved out and wages rose we managed to increase the amount. Now we have a sizeable pot ready for retirement.
You have overpaid on your mortgage which is savings of a sort. I would say you should have some sort of emergency fund so start off small £50 per month for example and any spare money you have at the end of the month. I would keep this in a regular saver account or high interest current account and if you can afford a monthly saver stocks and shares isa as well this is a good way of building up long term savings.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Aren't the stats something like 40% of population have no savings and 70% have under £2000?
I'd definitely keep some savings as instant access before paying off mortgage. Even if the mortgage money is accessible it will take a week or so before the money is back in your account in my experience.Remember the saying: if it looks too good to be true it almost certainly is.0 -
enthusiasticsaver wrote: »
I would keep this in a regular saver account or high interest current account and if you can afford a monthly saver stocks and shares isa as well this is a good way of building up long term savings.
I really think the first part should be concentrated on to the exclusion of the other. Having any funds tied up in the OP's situation is not a good idea until they really have a healthy sum (well over £1000 I would say) as the comfort zone, for things that crop up - as they will.0 -
We had always lived within our means, paying into pensions, but with minimal savings up until our second child came along 7 years ago. It was at this point we slowly fell into the debt trap. 7 years on and with my job change last year we finally paid off the credit cards and shifted that money towards savings and mortgage overpayments (with drawdown facility) in March this year.
I have found these forums a great help. But also putting the savings away as soon as I get paid has enabled me to start and continue saving. You then don't feel tempted to spend it!!
Our 3rd child arrived in July so we're going to have to work hard to maintain the savings discipline and not fall back to the debt trap.
Happy Saving.You should pay attention to the needs of the moment - otherwise there is no future. But to ignore the future is foolish - living solely for the moment leaves nothing for when the next moment arrives.0 -
I seem to remember a survey where half the population had less than £500 in liquid money. Maybe out of date now, and maybe worse since the credit crunch?0
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