Savings Log of a 26yr old on low pay

mike88

MoneyWaster2007 wrote: »

<< that's an impressive %age to save each month! I find 15% is a push.

Not sure about the help to buy scheme as heard bad things about it?? Not sure tbh..

I'm surprised you say that as this scheme is designed to suit those in excatly the same position as you. Probably the best one is the help to buy mortgage guarantee which will be introduced in January 2014. See below.

Help to Buy mortgage guarantees

From 1 January 2014, the Help to Buy mortgage guarantee will help you buy a home with a deposit of only 5% of the purchase price.

Help to Buy mortgage guarantees will be open to both first-time buyers and home movers.

Details of all the schemes in operation can be found here:

https://www.gov.uk/affordable-home-ownership-schemes/overview

ampersand

Hello mw - I'm so glad others have ridden in to encourage you just as you were flatlining a wee bit.

It's going to happen sometimes. 100saving and AlwaysLearnin mirror my views exactly - really good posts. If you can manage sans voiture still, do so.

Enjoy your week off - you haven't had a break for so long and the long winter, no proper spring, has made it feel endless. Grab as much sun as you can and lay it down like good wine for the coming months.

I, too, have read and heard negs re:Govt scheme. Check through mike88's info. Ask around. Try and speak to someone already in it, or perhaps better - start a specific Thread asking for pro's & con's from personal experience?

Archi_Bald

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MoneyWaster2007

AlwaysLearnin - thanks for the advice, I was certainly going off track a bit there.

mike88 - cheers for the link, although I'd ideally like to get a mortgage on my own (ie. without the gov's help). That way I get more cash on sale, when the time comes.

ampersand - thanks again for your encouragement. It helps to keep me motivated.

Having scrutinised my ISA spreadsheet for 2013, I've found my monthly drop is averaging at £200 to July. So I've decided to save £200 at the top of the month, as standard. I was saving £136.50, so it's an increase of £63.50. This means things will be that bit tighter each month, but I think it will be ok. The higher amount saved each month should have a pretty decent impact over the long-term. What do you all think?

AlwaysLearnin

It's good to push yourself, but be careful not to push too hard. As the saying goes; "All work and no play makes Jack a dull boy", i.e. you've got to allow for a bit of fun/reward too. You've already felt a bit of savings burnout!

Perhaps you could put the extra, or some of it, in an instant access non ISA account. That way, if you really feel the need for an occasional small treat, you can get to some money without taking out of your ISA allowance. If you don't touch that money though, then it can go in to the ISA in March if you have room. Some see putting money in an ISA as 'locking it away' but sometimes, as long as you have a level of discipline, having access to a small pot makes you less likely to want to spend it - i.e. "I could do that if I wanted" can make it less desirable than "I really want to but I can't afford it"!

ViolaLass

OP, I contributed to this thread some months back but haven't kept up to date. Out of curiosity, what have you done this year to improve your earning power? I don't mean overtime, I mean qualifications/experience.

ampersand

mw - this, from AL's excellent post, is spot on:

having access to a small pot makes you less likely to want to spend it - i.e. "I could do that if I wanted" can make it less desirable than "I really want to but I can't afford it"![/QUOTE]

The 'savings burn-out' symptom is one to beware of. Are you still swimming?

atush

MoneyWaster2007 wrote: »

AlwaysLearnin - thanks for the advice, I was certainly going off track a bit there.

mike88 - cheers for the link, although I'd ideally like to get a mortgage on my own (ie. without the gov's help). That way I get more cash on sale, when the time comes.

ampersand - thanks again for your encouragement. It helps to keep me motivated.

Having scrutinised my ISA spreadsheet for 2013, I've found my monthly drop is averaging at £200 to July. So I've decided to save £200 at the top of the month, as standard. I was saving £136.50, so it's an increase of £63.50. This means things will be that bit tighter each month, but I think it will be ok. The higher amount saved each month should have a pretty decent impact over the long-term. What do you all think?

200 a month, means an extra 1K every 5. You will soon have enough for a deposit at that rate? If you can keep it up- you do need to have fun too.

I myself would never be w/o a car (I can't help it- im american lol) but you have done well w/o one so far. You could rent one for a week during your holiday? Get out and about? Make it feel like a real holiday.

mike88

There will come a point where house prices rise faster than you can save depending of course on where you live. At the moment we are in a slump but the indications are that prices are rising and will rise even further. That is why the government scheme might come in handy. The details for the new element to the scheme haven't been published yet so don't dismiss it out of hand. At least have a look when the details are published.

How important is transport from a cash flow perspective. Do you spend a lot on transport costs - getting to and from work for example? If so would a bike or even a small motorbike be cost effective? A car of course is a money pit but, unlike a car, a motorbike is very very cheap to run. I had one for over 10 years and it paid for itself in 3 not to mention the added convenience having your own transport can bring.

FatherAbraham

mike88 wrote: »

I'm surprised you say that as this scheme is designed to suit those in excatly the same position as you. Probably the best one is the help to buy mortgage guarantee which will be introduced in January 2014.

No, the scheme is designed to help the construction industry shift props.

You really shouldn't take government propaganda at face value.

The scheme works by deferring the purchase of a part of the residence. That deferred part still has to be paid for later, at the market rate, not the nominal price when the property was acquired -- yet the victim-of-government-meddling must nevertheless pay "interest" on the deferred price.

It's an incredibly bad deal for the borrower.

Warmest regards,
FA