How much can you save?

guitarman001

Don't post here often either but here is an update:

26 y/o professional electronics engineer. Savings now up to £25k BUT lost some from share dealing. Stopped a lot of that and sticking to 'normal' savings accounts (Vantage) to preserve my capital. Net savings now approx £23k.

Saving between £500-900 per month (I stay at home) but also paying an EXTRA £200-300 per month off my student loan (in addition to the £100 taken of my payslip). Student loan now approx £13.8k, down from £15k.

So REALLY, net savings are around £9k and depreciating fast. (Though £11k's worth is in NS&I index-linked).

Hoping for at least 20% off current asking prices next year alone so that myself and others of my generation can at least afford SOME place, else it's emigration (assuming pound strengthens.... yeah, right).

EDIT - got to live a little, so taking a holiday to Disney Florida next year, why not!!

guitarman001

tara747 wrote: »

About 5 years - I only really got serious about saving in 2007 though, when I discovered MSE and now I am so much more savvy than I was. I am saving more each year as I get pay rises so hopefully will have saved £12,000 in 2010. Interest helps it along too (along I wish IRs would rise).

How do you save - accounts only? Do you do share dealing? I tried shares but was naff at it, awful to see money go down.

tara747

guitarman001 wrote: »

How do you save - accounts only? Do you do share dealing? I tried shares but was naff at it, awful to see money go down.

I don't do stocks and shares at the mo, have thought about investing a few ££s here and there but it would be for the long term (i.e. at least 20-30 years), need to be able to ride out the peaks and troughs and still get out in time for retirement on the upward cycle. That's the plan anyway. I haven't started yet but will put a small amount in on a regular basis.

I wouldn't invest my deposit savings in S&S - too risky if you need access in a short timeframe. So it's all been hard slog with traditional saving. MSE has helped hugely, I am on track to save £12,000 in 2010 so am thrilled.

Castleman

guitarman001 wrote: »

Don't post here often either but here is an update:

26 y/o professional electronics engineer. Savings now up to £25k BUT lost some from share dealing. Stopped a lot of that and sticking to 'normal' savings accounts (Vantage) to preserve my capital. Net savings now approx £23k.

Saving between £500-900 per month (I stay at home) but also paying an EXTRA £200-300 per month off my student loan (in addition to the £100 taken of my payslip). Student loan now approx £13.8k, down from £15k.

So REALLY, net savings are around £9k and depreciating fast. (Though £11k's worth is in NS&I index-linked).

Hoping for at least 20% off current asking prices next year alone so that myself and others of my generation can at least afford SOME place, else it's emigration (assuming pound strengthens.... yeah, right).

EDIT - got to live a little, so taking a holiday to Disney Florida next year, why not!!

Good work with saving, but putting extra into your student loan is a waste of money. For starters, you can get better rates on that cash (e.g. your vantage account at 4%) than you're paying on the loan (1.5%) and secondly, it's the cheapest loan you'll ever get, so paying extra now when you intend to take a mortgage in the future, (which will be at a higher rate and you could reduce the mortgage amount needed by using those overpayments) is not efficient use of your money. It might make you feel better not to have the debt, but it really doesn't make sense.

As for me, deposit target saved, rainy day cash saved and just trying to inch up to saving enough for 'new house spending'. Our overall target is 99% there though so skiing is booked for january!

guitarman001

Castleman wrote: »

Good work with saving, but putting extra into your student loan is a waste of money. For starters, you can get better rates on that cash (e.g. your vantage account at 4%) than you're paying on the loan (1.5%) and secondly, it's the cheapest loan you'll ever get, so paying extra now when you intend to take a mortgage in the future, (which will be at a higher rate and you could reduce the mortgage amount needed by using those overpayments) is not efficient use of your money. It might make you feel better not to have the debt, but it really doesn't make sense.

As for me, deposit target saved, rainy day cash saved and just trying to inch up to saving enough for 'new house spending'. Our overall target is 99% there though so skiing is booked for january!

Well done - what was your target (or would you prefer to keep it secret?). Got to enjoy yourself, I say - so enjoy your trip!

I know what you're saying... I only recently started to overpay - depends what inflation is like also, though, right? If high the rate will be higher which I think it will be this year. I might yet reduce the amount I overpay by and open a 3rd Vantage account when I fill the other two. Of course you are correct that I'd be best paying off a large mortgage.

ViHan

Done a bake sale today. Shattered though so not cashed up or anything. Think I made about £35 - £40. Not much but it all helps
There were some spares left over so I won't have any problem with puddings for my girls for a few days too

I counted up my change jars and Dh's tips the other day and I have some more to bank. Will update my totals when I a) count and b) get to the bank to pay in.

pjcox2005

Only pop on the thread occasionally but noticed your post guitarman.

In addition to the fact you'll normally get higher rates of interest elsewhere than you pay on a student loan, plus the cost of a mortgage being higher etc you should also consider the following:

Repayments on a student loan are only required if you are paying above a certain threshold. I see it that in the current climate and risk of unemployment (although I don't know your job security) then it could be prudent to build savings rather than pay of a student loan you wouldn't be able to recoup.

guitarman001

I understand your point.... but anything over £6k (I think?) and then you have to start LIVING off your savings? Believe me I'm going to keep saving but I'd rather not use all my savings to live off if I lost my job - after several years' work I think I'd be entitled so job seeker's, however this doesn't seem to be policy.

I think it's a disgrace savings have to be eaten away at in this sense.

Regardless, my savings are above this threshold. I will likely cut my additional repayments down from £300 per month to something like £100-150 per month. Still want to pay a little extra back - don't want it around my neck for 10 years +.

gfunk_2

OK, i'm a lil late, but i'm in too! Have just over £13k saved at the moment, for a house deposit. Aiming for 20K.

Castleman

guitarman001 wrote: »

Well done - what was your target (or would you prefer to keep it secret?). Got to enjoy yourself, I say - so enjoy your trip!

I know what you're saying... I only recently started to overpay - depends what inflation is like also, though, right? If high the rate will be higher which I think it will be this year. I might yet reduce the amount I overpay by and open a 3rd Vantage account when I fill the other two. Of course you are correct that I'd be best paying off a large mortgage.

Cheers. The target was built up based on intended deposit (35-40% to get lowest possible rates), rainy day/emergency savings, house moving costs, money to do some work on house once moved in!

SL is the lower of RPI or base rate plus 1% (hence it currently being 1.5% and not 4.4%), so never really worth paying off extra! the way I see it is that in the next 5 years I'll pay it off and then will have the spare cash each month to put into mortgage, rather than pay off the SL now and have to pay more on my mortgage later! (plus save any extra now to include in deposit to reduce that mortgage at outset).