How much can you save?

bodmil

davej87 wrote: »

My main worries are that I won’t be able to get a mortgage without a permanent job. But at the moment I have £3600 in an ISA that matured a couple of months ago now and I haven’t done anything with it and I have just under £2000 in my bank which I’m thinking I should move into an easy access savings for emergency funds and to save more in this once I have found a new job.
Any advice would be greatly appreciated

Hi davej87. I think a lot of us are in a similar position. You're right that without a permanent job you will struggle to get a mortgage. But that's not the be all and end all. I wonder where the rush comes from to borrow as much as a bank will allow you to then struggle to pay it back for the next 25 years comes from with our generation?

I think the key thing now is to get into a habit of saving a good amount of money in a way that you can maintain for the future. If you aren't happy living at home, look into sharing a flat or house with other people. If you're currently temping, then maybe living at home is the better option until you get a longer term contract. Don't over stretch yourself by getting a plush flat just because you can cover the rent out of your wages. Remember that currently you really do need 25% or there abouts for a deposit (plus extra for costs and emergencies).

Keep thinking of the future, but don't rush to get there. The more time I spend on these boards the more I know that I want to buy a place with the smallest mortgage possible and to pay it off as quick as I can too! So whilst I am also keen to buy a place, I'm going to help myself out in the long run by holding off now so I'm in the best position when it comes around.

In terms of accounts and things - I am, like a lot of people here, a fan of the Lloyds Vantage accounts, which give you 4% if you have 5000 pounds in circulate 1000 pounds a month into it. So maybe that's a good goal for the future. In the mean time, the AA 2.8% instant access account is a good home for emergency savings.

Have a look around for a good ISA too. You might need to transfer providers which can take a while. Rates aren't great at the moment but if you can add to it, you've then got a good amount set aside for tax free returns when rates improve.

Keep us up to date with how you go!

ljaneyr

Hello all!

My standing order to my first home saver went today so my new total is £1900, almost up to 20% :j
It's very motivating to actually see my savings grow at last!

Just doing a bit of budgeting, does anybody have any idea how much it costs to service a car? I've never bothered before as my cars have been old and rubbish! Also how much would you budget for a cars first MOT? I think it will be 3 years old this time next year so want to take that into account too.

Little update: Myself and the pup finally moved into my OH's parent's house yesterday! Only a year after it was first suggested lol! Now hope to save loads on petrol as I'm closer to work and the horses I ride, and won't be driving over here to visit. I was a bit worried about the change of routine etc but they have been extremely laid back about it and have kindly let me put my desk and wardrobe in the spare room until the bigger room is ready. I will miss my mum and dad loads, but not the stress of living with them!

MrOrchard

Hi All,

I recently completed a 5 year IVA, got married , got promoted into a higher rate tax band and have managed to secure rent free accommodation for the last year (and for the next two with any luck). I've also just hit 30 and can't believe how much I'm looking forward to the future with the IVA off my back! :j

This puts my wife and I in an extremely privileged position and we want to SAVE. We can save around £1,900 - £2,500 a month (depending on spending), but would welcome some advice about the best ways.

Ultimately we have a 2 year plan for a house deposit (£40k as first time buyers in London), the wedding wiped us out, so essentially we're back to square one in the savings.

I need to start a pension, but I'm not sure if my employer scheme will be competitive (I'd need to negotiate it as no-one currently uses it, and there's no standard employer contribution set up). If the employer scheme doesn't work out, what is the next best course of action?

Right now our rough plan looks something like (and hugely influenced by this site :money: )

1. Cash ISA in my name (higher rate tax), throw maximum amount into it as soon as possible, followed by the same on 6th April, then do the same for my wife (lower rate tax).

2. Regular saver account in my wife's name (lower rate) then possibly another in mine if there's a low limit on monthly investments. We'd pay these out of our regular savings accounts to maximise the interest return possible.

3. The pension - right now I have no idea if it's worth adding a couple on months onto saving for the house deposit and starting contributions now (barred under the IVA), or throwing money at a house deposit (this will create a huge assest in the form of a home anyway for our dotage...)

I suppose my need for guidance really revolves around whether this is a good idea, or if I'm way off the mark and should look at something else; and also the pension vs deposit question - Save for a house or invest in a pension earlier?

The IVA taught me a lot, but also indicates that my financial 'savvy' may not be the best, hence the posting.

Anything would be really appreciated, especially before we start committing large sums of money to something that may be completely the wrong idea!

Thanks!

edinburgher

My standing order to my first home saver went today so my new total is £1900, almost up to 20%

Am I right in thinking that that's a Santander branch-based account? How have they been? I ask as my fiancee and I have both closed Santander ISAs as the customer service through their contact centres has been dire Still, the rate was good for the account you mention (if it's the same one that I'm thinking of!)

tara747

Does anyone else find it difficult to believe that their savings really exist? I have mine spread across several different accounts to maximise interest, and sometimes I don't really feel that I actually have that much. Seeing a total of over £38,000 written in black and white is just surreal, maybe if it was all in one account I would 'believe' it more easily. 5 years ago, if you'd told me that I would one day have almost £40,000 saved, I would have laughed my head off. I feel like I'm imagining it lol!

jibadeeha

tara747 wrote: »

Does anyone else find it difficult to believe that their savings really exist? I have mine spread across several different accounts to maximise interest, and sometimes I don't really feel that I actually have that much. Seeing a total of over £38,000 written in black and white is just surreal, maybe if it was all in one account I would 'believe' it more easily. 5 years ago, if you'd told me that I would one day have almost £40,000 saved, I would have laughed my head off. I feel like I'm imagining it lol!

I have my money spread across different accounts and like you found it hard to believe it existed when you see bits here and bits there. Now I have everything recorded in a spreadsheet so I can see the total figure and that seems to give a more realistic view for me.

Driving_Soon

tara747 wrote: »

Does anyone else find it difficult to believe that their savings really exist? I have mine spread across several different accounts to maximise interest, and sometimes I don't really feel that I actually have that much. Seeing a total of over £38,000 written in black and white is just surreal, maybe if it was all in one account I would 'believe' it more easily. 5 years ago, if you'd told me that I would one day have almost £40,000 saved, I would have laughed my head off. I feel like I'm imagining it lol!

Oh my god! I'm exactly the same!

I don't have as much as you, but I have £22,000 and I am only 22 years old so its ALOT for me personally, but like ... I can't believe really I have that much!

Like, this might sound a bit lame but I watch shows such as Deal or no Deal and they go away with lets say £7,000 and they are soooooo happy and I think, I have £22,000 and it don't really effect me ... It's werid ... It's like it's just numbers on a computer screen and not really MY cash!

I understand what you are saying totally!!

jibadeeha

Driving_Soon wrote: »

Oh my god! I'm exactly the same!

I don't have as much as you, but I have £22,000 and I am only 22 years old so its ALOT for me personally, but like ... I can't believe really I have that much!

Like, this might sound a bit lame but I watch shows such as Deal or no Deal and they go away with lets say £7,000 and they are soooooo happy and I think, I have £22,000 and it don't really effect me ... It's werid ... It's like it's just numbers on a computer screen and not really MY cash!

I understand what you are saying totally!!

Well done with the £22K - that is fantastic :j

You are well above the national average which is about £2205.

Do you find the more you save the harder it is to spend?

tara747

Driving_Soon wrote: »

Oh my god! I'm exactly the same!

I don't have as much as you, but I have £22,000 and I am only 22 years old so its ALOT for me personally, but like ... I can't believe really I have that much!

Like, this might sound a bit lame but I watch shows such as Deal or no Deal and they go away with lets say £7,000 and they are soooooo happy and I think, I have £22,000 and it don't really effect me ... It's werid ... It's like it's just numbers on a computer screen and not really MY cash!

I understand what you are saying totally!!

Yes, I think that too - anytime I see someone winning £10K I think 'lucky them', forgetting that I have four times that much saved! I would so love to win a big wodge to boost my deposit savings, but I value my money all the more because I've earned it. Also, it's hard to get too excited thinking about it as it'll prob get all swallowed up someday by the purchase of a house... I'm unlikely to splurge it!

jibadeeha, I always think very carefully about spending, but have relaxed a little the past few months as I have bought some flights and few CS bargains. I will be tightening up again now! I spend on my great love, travelling, and I also try to buy the best quality food that I can afford, but I refuse to buy pointless tat. I think I have a good balance.

LucyTheDwarf

tara747 wrote: »

Does anyone else find it difficult to believe that their savings really exist? I have mine spread across several different accounts to maximise interest, and sometimes I don't really feel that I actually have that much. Seeing a total of over £38,000 written in black and white is just surreal, maybe if it was all in one account I would 'believe' it more easily. 5 years ago, if you'd told me that I would one day have almost £40,000 saved, I would have laughed my head off. I feel like I'm imagining it lol!

Me and my boyfriend had this exact conversation yesterday!!! We both have spreadsheets and programs to help us keep tabs on what money is where and how much we have, but they've always just been a number. Then he asked me where I was, and I told him how much is in my various savings accounts and we both then stopped an had a "wow" moment! I mean, we see how much we have regularly... but it just isn't real until you say it out loud. It's weird!