Savings Log of a 26yr old on low pay

MoneyWaster2007

Thanks guys, some great advice there. On reflection I'm thinking it's maybe better to buy a flat/ house which I'd live in and would require a smaller down payment than a BTL and then rent a room out. What sort of deposit would be required though? I reckon I can hit £10k in 3 years maybe less.

I'm going to check out this knitting club idea you mentioned desperate housewife. I also like your alternative take on kiyosaki's 'a house is not an asset unless you let it out' stance. Lots of things to mull over here...thanks once again.

This short reply hardly does justice to the long and thoughtful posts from y'all. I do appreciate them, honest!

ampersand

mw-I've lurked, read, thanked but not posted for a while.

I'd just like to add how different your tone and writing style is these days. Not as tangible as your growing savings, I know, but let me assure you that the much stronger tone and writing style, new assurance and maturity read in a very attractive flow.

Just every so often, you need to remind yourself how well you are doing, all over again.

linz

Maybe you could think about joining a cooking class too MW? There might be some in your area that girls frequent. Plus girls love a bloke who can cook

rockitup

MoneyWaster2007 wrote: »

Thanks guys, some great advice there. On reflection I'm thinking it's maybe better to buy a flat/ house which I'd live in and would require a smaller down payment than a BTL and then rent a room out. What sort of deposit would be required though? I reckon I can hit £10k in 3 years maybe less.

The size of your deposit will determine your choice of mortgage and also the rate. At 5% not so many choices and a higher rate, at 10%, and 15% there are more available and lower interest rates and maybe lower fees.

If you end up going for say a 5% deposit, then try not to get locked in for too long. Reason being, as you build your savings up maybe after a year or two you could remortgage and pay a 10% deposit or hopefully 15% down and end up paying less interest.

You just have to do lots of homework and see what is available when you are ready to buy as mortgage products are launched and withdrawn on a regular basis.

I will second what ampersand posted about your stronger tone, new assurance etc. You have definitely become more confident now and able to plan much further into the future.

MoneyWaster2007

Thanks, will do my best to get to £10k then look at what deals are available then

Been doing overtime this evening and will have done 10 hours by the end of the week...my theory when it comes to overtime is to transfer it straight into savings as it is money that wasn't expected and I can manage on my standard wage. That way, the money earnt (at 1.5 times hourly rate) will earn money from interest in savings. Does anyone else adopt this approach to overtime?

linz

Yep; every payrise/bonus/overtime I try to save or put it towards the mortgage. You never had it so you don't rely on it or miss it. Don't always manage it but it's good practice if you're saving for something or paying off a debt.

gallygirl

linz wrote: »

Yep; every payrise/bonus/overtime I try to save or put it towards the mortgage. You never had it so you don't rely on it or miss it. Don't always manage it but it's good practice if you're saving for something or paying off a debt.

I agree. NEVER, EVER treat overtime as part of your wages. That way if it dries you won't be in trouble, unlike colleagues who add it to the pot.

And don't take it into account when working out affordability for a mortgage for the same reason.

Great to hear your plans

Primrose

I agree too. Unexpected money is too good an opportunity to just fritter away. My philosophy has always been to think and plan for the long term, even if it's in little steps at a time. Whilst they may feel small contributions, collectively they add up when interest is compounded over the years, especially where reducing debts or the mortgage is concerned. The feeling of liberation when one becomes debt free is elating and worth all the little sacrifices along the way. Keep at it ! You will reap the benefit!

MoneyWaster2007

Thanks, great advice there once again. I've now adopted the philosophy that whenever overtime is offered to accept it and bank the money earned. Can't wait until my interest starts compounding decently may take a couple of years to see this though

MoneyWaster2007

Hows about this for a bargain: I needed an external cd rom for my netbook for my coursework so I checked around for the cheapest deals. The cheapest one I could find was £20 at Maplins, but then I bidded on one on eBay and got it for £9.50 including postage - quite pleased with that!