Savings Log of a 26yr old on low pay

MoneyWaster2007

Hi Linz, hopefully

...although I've had a good 12 months with unexpected income from ppi reclaim and a tax rebate, so the next £6k will no doubt take much longer to save. Then again, you never know when money might turn up as in the case of the tax rebate and ppi, so as long as I keep plowing on then hopefully I might get some more luck along the way...:)

rockitup

Well done on your achievement so far MW, I haven't posted on your thread for a while but do keep up to date reading it (I also had no new post notifications on this thread for a while...)

It was a good move to give up the car if you can do without it, trouble is Winter is almost here now but hopefully that Parka will keep the worst away.

If you can just try to bump up your monthly savings target whenever you get a pay rise, it does help over the years. Some websites have various financial calculators on that will show the effects of increasing your savings each year (as well as showing effects of estimated inflation {the downside}) I just found this one on Candid Money but it doesn't allow for annual increases in savings so you can do some manual adjustments.

http://candidmoney.com/calculators/savings-how-much-calculator

Next stop £10,000 ! :T

MoneyWaster2007

Nice one will check the link as soon as I've hit post.

Bought a pair of warm gloves (£2) and a snood (£5) both from Primark, cheap and effective to combat the cold. Add to that the umbrella I got from Sports Direct (£3) and winter shouldn't be a problem

Jox

It can feel frustrating when you think you are only adding a smallish amount to your savings and it's not growing fast enough, but the months fly by and before you know it you've saved a very reasonable sum!

It's better than saving nothing at all.

Once you are in the "flow" of saving then other ways of making and saving money might come to you, I'm reading a book on positive thinking and law of attraction so that's the theory I'm "banking" on

Are you saving at least 10% or 20% of your income?

MoneyWaster2007

Hi Jox, I'm saving 10% as standard, then any more I can manage that is left over at the end of the month, so it varies. I've also started spending any left over cash on myself in the form of new clothes but once I have enough (clothes) then I'll start channeling that extra cash into the ISA again.

I like your thinking about the months flying by and it'll soon be a decent amount, I guess patience is a big component here and also not watching a kettle boil...:D

black_taxi_2

Yeah---running cost of keeping car on road is 2nd behind rent/mortgage

Impressive you have no debt or taken on more loans

1k/3k bank loans every couple of years kept me in debt up to 45years old

Jox

http://www.inspiredtosave.com/

This is quite a good website that shows you compound interest. Even if we save £10 or £20 a month over a few years it builds up as long as we keep it in a reasonably performing savings account.

I was trying to work out if I saved some money for my nephew for when he is 21 I could have a couple grand saved by then if I just save £20 a month, but then I might worry about what he will spend it on!

MoneyWaster2007

Jox, that website is excellent! It's made me think about trying to save 15% of my income rather than 10% as the results will be dramatic. In 4 years time the interest I'm earning will be greater than the amount I'm saving which is incredible! If only I'd started saving 10 years ago...better late than never though

kangus

mark mark mark mark it

[Deleted User]

Morning MW, have just come across your thread and have subscribed to it.

Massive well done for being so sensible at an early age. I am 39 and am just getting there and like you how I wish I had started earlier! I have paid off all debts including my mortgage but now badly need to start saving. Will be keeping an eye on this thread and joining in where I can for inspiration.