18 year old - Looking to start saving!

liamcowan1

Howdy, it's my first post here so be kind :A

I'm 18 and will be finishing my A-Levels in the next week or so. I also have a part time job working in a local retail store earning between £400-1000 a month, I've been doing this since I was 16.

I've always been terrible with money and I'm fed up of spending everything I have a week after pay day.

I have no idea when it come's to bank accounts, what one's to go with and I'm looking to learn and sort myself out ready for my next pay check at the end of the month. I currently have; a standard bank account with HSBC, which is linked with an online cash ISA & a flexible saver.

My current expenses are ~£50 a month, so as you can see I'm spending a hell of a lot on nothing!

I want to be setting myself targets and saving a substancial amount of money each month in a decent bank account.

Any advice is appreciated and I'll apologise in advance if I've made any mistakes, it's late

C_Mababejive

Your major advantage is that you have time on your hands.

Think long term growth.

Start buying batches of shares of low priced but reliable companies such as VOD/NWG and others.

You could start saving monthly in a stocks and shares investment vehicle such as a fund bought via the likes of hargreaves landsdown or similar. Pay a regular amount in each month to spread cost/risk.

Hopefully in 20/30 years time,you will be quids in.

Lokolo

Work out what you are planning on doing in life. Are you going to university? Do you want a house? Do you have/want a car?

Work out expenses, so at the moment you are spending £50 a month, which is absolutely nothing. Split it into areas.

Going Out: £40
Entertainment: £20
etc.

Then when you get paid X, put X minus the above expenses (of how much you want to spend), into savings account.

It will soon add up.

Whilst you are doing that you might want to have an aim, so £Y amount. Then have a graph to show yourself how that's coming along. It's better to have something to aim for.

CLAPTON

find out where you money is actually going
is it going out?
buying loads of clothes/junk
etc.

work out a reasonable amount to give you a social life
and aim to save the rest

just save the money in a decent savings account

liamcowan1

Thanks for all of the replys guys

C_Mababejive wrote: »

Your major advantage is that you have time on your hands.

Think long term growth.

Start buying batches of shares of low priced but reliable companies such as VOD/NWG and others.

You could start saving monthly in a stocks and shares investment vehicle such as a fund bought via the likes of hargreaves landsdown or similar. Pay a regular amount in each month to spread cost/risk.

Hopefully in 20/30 years time,you will be quids in.

Sounds like a great idea but I have absolutely no idea when it comes to shares and stocks, where's the best place to start learning and understanding how the system of it all works.

Lokolo wrote: »

Work out what you are planning on doing in life. Are you going to university? Do you want a house? Do you have/want a car?

Work out expenses, so at the moment you are spending £50 a month, which is absolutely nothing. Split it into areas.

Going Out: £40
Entertainment: £20
etc.

Then when you get paid X, put X minus the above expenses (of how much you want to spend), into savings account.

It will soon add up.

Whilst you are doing that you might want to have an aim, so £Y amount. Then have a graph to show yourself how that's coming along. It's better to have something to aim for.

Probably won't be going to university, education isn't for me. Already have my car (waiting to pass my driving test, when I do I'll be paying more money out per month) and I'd love a house, obviously not any time soon but if I can start saving now I figure I'll have a lot of time to get a decent sum of money in the bank.

The £50 expenses I listed were merely my mobile phone contract and contact lense direct debits. I'll definitely have to start budgeting for social life and money spent on the mrs!

I've been reading some threads and it seems everybody has an aim, think I'll decide on something realistic, yet a challenge for me to do.

CLAPTON wrote: »

find out where you money is actually going
is it going out?
buying loads of clothes/junk
etc.

work out a reasonable amount to give you a social life
and aim to save the rest

just save the money in a decent savings account

Thanks for the reply, usually it goes on going out, buying lunches at work, clothes and spending time with the girlfriend.

I'm useless when it comes to knowing which savings accounts are good and which aren't, where can I learn which are good and which are bad?


Are spreadsheets a good thing to create when budgeting/trying to save? What sort of things would I include in the spreadsheet?

Sorry for the extra long post and all the questions I'm asking, I'm just a newbie at this so I'm looking to learn

bodmil

You can learn right here. Look at the top of the page for banking and saving sectors. There is a guide on bank accounts, read up and see what's most suitable for you. I would advise keeping a spending diary so you can actually see what you are doing with your money.

214jay

Hello! It’s great that your thinking of saving at 18 as even a small amount each month will really add up! I would personally (and have done) set up a direct debit (which can be easily done if you have online banking) to pay whatever money you can afford (even if only £100) each month into your savings account just after payday. This will soon add up and any months where you earn more you can add the excess into the savings too. By doing this it is almost like a bill so it just goes out every month - if you ever start getting payrises then that extra can also go into the savings if you wish.

I have been doing this for years and tend to transfer it into an ISA, that way its less tempting to remove as only allow 3 withdrawals a year. My personal goal is to save for a house and I have never touched my ISA in my life so the amount has only got bigger.

Best of luck with the savings, there is nothing more fulfilling that watching your money increase!

liamcowan1

Hello!

Thank you for the replies.

@bodmil - I've been checking them out for a little while, but they often talk of moving the savings after 12 months, I want to easily save in maybe one or two accounts that are simple, and easy to use. I'm still ploughing my way through the article and forum threads but are there any savings accounts that you would reccoment to someone in the same boat as me, or is it different for everybody?

@214jay - Hey! Thanks, I've wasted too much money in the past years and really need to sort myself out. I'm looking to save between £250-£500 a month, will vary depending on the overtime I work, due to only being employed part time right now, and I will almost certainly get the £250 taken into a savings account (when I eventually find one) on each pay day. I'm hoping to save somewhere in the region of £3,000 before christmas this year, and then a more longer term goal.

I'm really hoping I can get my finances sorted as I'm terrible with money, so better to start whilst I'm still young than when I'm older aye

Thanks for the replies guys and I'm taking on board everything that's being said, thank you.

fkelanne

wow i wish i was a wise as you in saving at 18! i am now 26 and just sorted my debt out and can now save. good luck.

bodmil

Liam, some accounts will drop the rate after 12 months, others will require you to lock the money away for 4 years. It really depends what you want. Sometimes a regular saver will offer a higher rate of interest and sounds like it could be suitable for what you want. For me, I can't rely on making a deposit every month so that wouldn't work. If you need access to the money as you go make sure to watch out for withdrawl penalties.

214jay

Hi Again...Do you sign up for the MSE newsletter that comes through by email? It usually tells you the best savings accounts out there (typically A+L / Santander these days), worth getting if your not already signed up