Student wanting to save. And stop money issues

SuaveStar

First post on here, and will give some background information, so please bare with me.

I'm an early 20's student, living at home, and preparing to move out in a couple of weeks, I have some money in the bank, but that wasn't always the case:

About a year and a half ago, I was broke, no money coming in, and was using my overdraft a lot, I had to pay a creditor and also, I had a serious problem with spending. It seemed like the only time I could be happy was when I was spending money.

I was in serious trouble, and I couldn't find a job or anything. Then, I somehow got JSA, and when I started to see the amount I owed the bank go down, the first thing I did was set up with the people I owe money to, and paid them off right away, it was a great feeling. After this, I looked at my savings account, a friend had told me to set up months earlier. It was at this point I said "I'm going to save, for real..."

From that point I made myself a goal, I was going to save £150 minimum a month to make sure I would never be in that much trouble financially again. For the first three months, I was hitting my overdraft again with the £150, but it was worth it, knowing that something was working. I decided to just go cold turkey with spending, I sold a ton of stuff on eBay and used any money I gained to pay off my overdraft, and to put towards my savings. In September I had cleared my overdraft, but that did not stop me saving.

I saved any money I could wherever I could, some months putting a large chunk of my student loan in, and dealing with it, others not so much. Whatever the amount, I made the self rule, that the minimum would always be £150, if I dropped off once, then that could start me on a slope, if I kept with it through the good and the bad, then I knew, it was working.

On May 1st of this year, I had reached my final figure: £3,000.01, meaning I had saved over £3 grand; I loved adding that one pence, as it still counted to me.

Anyway, just thought I'd say that since then, I transferred a good chunk of it over to an ING savings account making 2.75% in the first year.

I am now preparing to move out of my mum’s home, and get my own flat with a friend. The only problem is, I am now worried about the money situation. I took money away from my savings for the first time the other day, and it was horrible, and then I started to realise "This is it starting, my savings are starting to go down..."

I had set to myself all the things I wanted to get with my new savings, a new television, a games console, a pet, things that I could enjoy for my hard work, in my own home. The place would be rented, I know I am not ready to attempt and buy a place at my age.

It just feels like my savings won't go very far, and I'm worried I'll be back in the same place I was before, which is broke, with money going out, and nothing coming in.

This has affected me somewhat in places. For example, my phone of two years broke, so I set aside some money to buy a new one, around £50, instead I bought a cheap £10 phone. Also, my MP3 player broke, I was going to go get an IPod touch with money from my savings, but instead went on Amazon and got an updated version of my old MP3 for £80 instead. I have things that I would like to get on my Amazon wish list, but I seem to stop myself and say "Can I afford this" and just leaving it, which is annoying, as I can actually afford it, but I just don't want to spend it.

I recently got a letter from my bank saying they are ending my interest free overdraft, which was my safety net, which is now gone. And I am worried.

I just want to know ways I can save money, I've already stopped buying DVD's, I rarely buy any games anymore, I do read comics, and this is an expensive habit, that isn't as bad as it used to be, but I need to curb it somewhat now. I'm thinking about just giving up on them, and checking out my library for graphic novels/trades of books.

Does anyone have any advice on ways I can save money, while still being able to enjoy some of the money I've saved without that horrible feeling of losing the money I've saved.


Thanks for any help. Sorry about any grammar and spelling errors.

Oldernotwiser

Train yourself not to want the latest things just for the sake of it but to buy things that do what you want them to do. Get used to buying things second hand - especially a pet (get a rescue).

Fang_3

Did you claim JSA while you were a student?

SuaveStar

Fang wrote: »

Did you claim JSA while you were a student?

I did during May-mid August of last year as I had left my course back in November 2008 due to having to pay back overpayments from SAAS and tuition fee, and not having the money to pay. I was paying out 460 a month, and getting a loan of £300 back when I had to leave the course.

I'm on a different course now, at a different level, the whole year before was just a mistake.

devildog

You have done so well to date and it appears you have learnt a lesson and come out of it on top. Congratulations you!
As you have recognised now you are finding yourself in a position where you really don't want to spend savings(sounds just like me)
I can't really give you any tips to save money, all I can say is if you 'need' something then shop carefully, review products and think about whether you need something basic or more upmarket(no point in buying the latest product if it has a whole load of things that you will never use)
Remember we all need a bit put by but we also need to enjoy our money too.My oh is a spender, me a saver, it works perfectly-I rein him in and he encourages me to spend

Lokolo

You need to do a statement of affairs:

http://www.makesenseofcards.com/soacalc.html

Post the results here or http://forums.moneysavingexpert.com/forumdisplay.php?f=20

SuaveStar

Summary of Monthly Income, expense and surplus
Total monthly income: £425

Expenses (incl. HP & secured debts): £189

Available for debt repayments: £236

Unsecured debt repayments: £0

Surplus (shortfall if negative) £236

Personal Balance Sheet Summary
Assets: £3,400

Secured & HP Debt £0

Unsecured Debt £0

Net Assets £3,400

I don't have any debts, bar student loans, which is around £8,000 mark right now. I have a credit card, which I have used once, and I am in credit for £1.04. I have had two bank charges against me, one on the 12th of February 2007 and one on the 30th of December 2008.

I probably did the statement sheet wrong, but that is the results I've gotten.

SuaveStar

devildog wrote: »

You have done so well to date and it appears you have learnt a lesson and come out of it on top. Congratulations you!
As you have recognised now you are finding yourself in a position where you really don't want to spend savings(sounds just like me)
I can't really give you any tips to save money, all I can say is if you 'need' something then shop carefully, review products and think about whether you need something basic or more upmarket(no point in buying the latest product if it has a whole load of things that you will never use)
Remember we all need a bit put by but we also need to enjoy our money too.My oh is a spender, me a saver, it works perfectly-I rein him in and he encourages me to spend

Thanks. I want to spend some of the money I've earned, but every time I go to, I always stop and say "Can I afford this?"

Lokolo

OK so monthly income of £425.

Expenses of £189 - what does that include?

You said you are moving out in a couple of weeks, can I assume that you haven't worked out the costs of living away yet?

SuaveStar

Lokolo wrote: »

OK so monthly income of £425.

Expenses of £189 - what does that include?

Well, that includes:

£15 a month for my phone. I usually top up £10 to get the free texts, but some months I have to top up twice, so I evened it out at £15.

£30 is for groceries, which I included lunches and stuff, when I was at college, I ate out two days a week, which was usually something cheap. And I'd buy cheap meals for at home, like £2 things at most if I want something special for dinner.

I set aside £20 for clothes, I don't buy clothes every month, but I evened it out, as when I do buy new jeans, I usually buy three pairs if I can get them cheap.

£50 is for travel, it costs £1.30 each time I go into town by train(With rail-card, before 10 it's £1.95), but I sometimes have to get the bus, which costs £1.40 per journey each way.

Presents: I usually spend £10 per person for presents, so I out down £20 a month, as I would be including Christmas into the equation.

Haircuts: £4 per month, as I get it cut around every three months, so that would even out to £50 a year.

Entertainment: £50, that includes comics, and games. I stopped buying DVD's a while ago, and I trade in old games for money off new ones, or I get them on Amazon.

You said you are moving out in a couple of weeks, can I assume that you haven't worked out the costs of living away yet?

I haven't no. But I'm going to use my ING savings to pay off six months rent in advance, that way, I can save money in ING right now, gain interest, then in six months, I can continue with the rent, and still have more money than I started with.

I haven't really worked out anything specific about gas and electric, but I am going to get O2 broadband and home phone for around £20 a month for both which includes line rental, and also paying £6 a month for home contents insurance, that is all I have so far.

Castleman

SuaveStar wrote: »

First post on here, and will give some background information, so please bare with me.

Have done, am now sitting here naked, baring and bearing with you!

SuaveStar wrote: »

Thanks for any help. Sorry about any grammar and spelling errors.

No probs