How much can you save?

leahciM

Thanks so much for the welcome messages gang!

@grn.w.nv I know, right? My car is a money sink, but if I don't put money into it, I'll have to buy a newer car. It reminds me of the Sam Vines Boots theory (if there's any Terry Pratchett fans out there.)

For those that have never read Discworld (and I judge you harshly for not doing so ) the boots theory runs thus:

Say you have no money and can only afford a $5 pair of boots. After 3 months, they start giving out. After 6 months, you need a new pair because your big toe is poking out the end and the bottoms of your feet are scrapping the cobbles (of AnkhMorpork.)
This means that after a year, you've spent $10 on boots, and will need to buy 2 more sets next year.

But say you've got money, you can buy a $20 pair of boots that will last you 10 years, if not more. Meaning that over those 20 years, while the poorer person has spent $100 on boots, you're still wearing your $20 pair.

And so it is with cars.

@Driving_soon Dear Gosh man, when I was saving for Uni I widdled all my money up the wall in drink-fueled nights out, hats off to your for being so disciplined!

tinkerbel

Right Guys and Gals, I need some help please!

• I just got my lloyds current account turned into a vantage account. (4% on balances of £5,000-£7,000) if you pay in £1000 a month
• I don't earn £1000 a month, so will need to do this via some money moving
• I have currently £8,500 sitting in my lloyds incentive saver (no interest for the month if you withdraw) interest rate 3% - get paid the interest on the 26th.

Should I get paid my interest on the 26th on the Incentive account, then move £6500 (I have £500 in there at the moment which gets spent and topped up throughout the month)?
This means I would lose out on 3% interest on about £2000 for one month (approx £5) but start getting the 4% on the rest of the money?

Then should I keep the £7k ish in the current account, and then move around £1000 from another bank (people are suggesting halifax reward account...) every month and put any new money I want to save back into the incentive saver?

One more question if anyone knows, say someone stole my bank card and pin, how protected would I be if the whole £7,000 got spent/stolen? (Just in case!)

Thank you!!

Lokolo

You'd be protected as long as you hadn't given out your PIN.

Thats the only reason banks wouldn't give the money out, if you had your PIN written down or something along those line.

If they stole your details and went on a shopping spree on Amazon then you would.

But yes, on 26th move the money across. You would start getting the 4% yes but lose out on a months interest in the other one.

Then have £1,000 just cycling around the accounts, you could swap between Halifax and Lloyds account.

tinkerbel

Thank you!! I think thats better even if it is only 1% more.. so thank you
Just opened a reward account too! Yey I am starting to feel more back on track!!

tara747

leahciM wrote: »

For those that have never read Discworld (and I judge you harshly for not doing so ) the boots theory runs thus:

Say you have no money and can only afford a $5 pair of boots. After 3 months, they start giving out. After 6 months, you need a new pair because your big toe is poking out the end and the bottoms of your feet are scrapping the cobbles (of AnkhMorpork.)
This means that after a year, you've spent $10 on boots, and will need to buy 2 more sets next year.

But say you've got money, you can buy a $20 pair of boots that will last you 10 years, if not more. Meaning that over those 20 years, while the poorer person has spent $100 on boots, you're still wearing your $20 pair.

This is so true.

rictus123

Well head gasket in my car is warped so thats £5-600 to sort. Not worth it as the car was half that. Taxed for a year at the start of the month and Mot until November so im just going to keep topping up the oil and water and keep it going until then if i can! Hopefully get my no claims through next month so il get my insurance down from £170 a month! Think itl be down to about £110 a month just by having that 1 years no claims.

Pay goes up in about a months time, bring it on i say! Same work/job but for alot more money. Should have a much bigger disposable income when it goes up.

Think im going away for a cheap holiday to Spain or somewhere for less than £500 hopefully + about that for spends, maybe £700 for spends.

Then when im back itl be as much overtime as i can get to save as much as i can for a new car in November.

I realise now that i wont have money for a deposit for moving out for another 3 years at least. But in 3-4 years i should have plenty so its not that much of a struggle when i do move out!

About £1,100 in my Isa, made a mistake an withdrew a bit instead of adding so im only able to have £5k in by next April, im hoping to have that in by the end of the year. Maybe not so realistic with getting a new car but you never know, i might get another banger.

LucyTheDwarf

leahciM wrote: »

For those that have never read Discworld (and I judge you harshly for not doing so ) the boots theory runs thus:

Ok, the Boots theory was of course all very true. But I take issue with you judging me for not reading Discworld novels. In theory, they should be right up my street, as I enjoy humour, fantasy, weirdness and plain old good writing. But I just can't get into them.

I can appreciate what a genius Pratchett is from what others have told me of his novels, but I just can't read them myself. Discworld novels are the only books that I've never stuck with until the end. They just don't grab my interest. I find I couldn't care less what happens, which is so unlike me.

So don't judge me. Damn it, I've tried to love Discworld, truly.

leahciM

LucyTheDwarf wrote: »

Ok, the Boots theory was of course all very true. But I take issue with you judging me for not reading Discworld novels. In theory, they should be right up my street, as I enjoy humour, fantasy, weirdness and plain old good writing. But I just can't get into them.

I can appreciate what a genius Pratchett is from what others have told me of his novels, but I just can't read them myself. Discworld novels are the only books that I've never stuck with until the end. They just don't grab my interest. I find I couldn't care less what happens, which is so unlike me.

So don't judge me. Damn it, I've tried to love Discworld, truly.

If you gave it a go, that's all I ask . To be honest, the entire series is a hangover from my teenage years. I'm sad to say that as the series has gone on the standard and playfulness of the novels which made them such an integral part of my reading has diminished slightly.


Baaaack to topic I opened my first ever cash ISA just now. Barlcays Golden ISA issue 2 @ 3.10% AER /3.06% tax-free pa.

I'm sure this isn't the highest interest but I bank with Barclays and being an ISA virgin I wanted to stick with them just for now.

So, I whacked £50 in just to open it, with the aim of adding £250 a month by standing order (and topping it up with anything I have left over by the end of each month.)

Glad to be properly amongst all you real savers at last! :beer:

leahciM

Oh, and just to add, now I've started saving good and proper, I can have a signature of progress

ljaneyr

Hello to all the new people!

I haven't been on here in a while. My savings have been at a standstill while I've saved for this festival, but I've got now got enough so I can concentrate on paying back my overdraft and eventually pay into my ISA again!

I love the discworld and following the boots theory bought a nearly new car after three rubbish cars that cost me thousands. I paid a deposit out of my savings then £150 a month for the security of knowing I (hopefully) won't break down in the dark in the middle of nowhere again and that as it's under warranty I have no MOT to pay for.

But each to their own, I couldn't possibly afford this if I were still renting. I got so fed up with going to the garage once a fortnight!

Frustratingly I can't get onto my current account online banking which is like losing an arm or something. I usually check it every day or so :eek:. A&L 'sent' me out a new pin but it didn't arrive so now I'm waiting for another new one.

Anyone else obsessively check their bank? What do I do at the end of the month when I need to do my budget for june and need to start transfering money all over the place?!