How much can you save?

The_Shoestring_Investor

I recently crunched the numbers on my financial situation and came to a rather disappointing realisation - my total savings was almost exactly equal to my student loan (around £12,000 a piece). Whilst it's not a disaster as the interest I earn oputsrips the interest on the loan, I suddenly realised I essentially have nothing saved.

As such, I decided to embark on an ambitious project to get myself ahead and start the savings game afresh - starting from just £10 a couple of months ago I'm now on £1,700+ (this is all without a job). It's going to be a difficult task so I'm really glad I found this thread, I hope it will help me along the way!

JR1985_2

I find it harder to save, despite drawing up a budget. I contribute to a pension and probably save £200 as well. I find if I have any money left at the end of the month I just blow it on a meal out or something for my entertainment (computer game, clothes, books etc).

Any tips how to get out of this habit?

islandgirl8

JR1985 wrote: »

I find it harder to save, despite drawing up a budget. I contribute to a pension and probably save £200 as well. I find if I have any money left at the end of the month I just blow it on a meal out or something for my entertainment (computer game, clothes, books etc).

Any tips how to get out of this habit?

I save by paying myself as soon as I get paid. I see it as another 'debt' if you know what I mean. I also deposit this money into a regular saving account and feel that I CAN'T withdraw it so that money is effectively gone.

Luke273

islandgirl8 wrote: »

I save by paying myself as soon as I get paid. I see it as another 'debt' if you know what I mean. I also deposit this money into a regular saving account and feel that I CAN'T withdraw it so that money is effectively gone.

This is also what I do, even if your savings account has unlimited withdrawals, treat it as if you can never withdraw from it. Also determine a monthly amount you can put into the account without starving yourself (like I determined I can put in £350 a month without going into my overdraft in my normal account) and then put that money in immediately after getting paid.

londoner01

islandgirl8 wrote: »

I save by paying myself as soon as I get paid. I see it as another 'debt' if you know what I mean. I also deposit this money into a regular saving account and feel that I CAN'T withdraw it so that money is effectively gone.

Luke273 wrote: »

This is also what I do, even if your savings account has unlimited withdrawals, treat it as if you can never withdraw from it. Also determine a monthly amount you can put into the account without starving yourself (like I determined I can put in £350 a month without going into my overdraft in my normal account) and then put that money in immediately after getting paid.

I do this too, I get paid towards the end of the month and at month's end I take away from what's in my current account everything above a certain amount which is living expenses + a little extra just in case. I put the difference in a savings account, and even though it's easy access I never touch it, unless to move it further into savings accounts!
Also I have a regular savings account which I pay into at the beginning of the month by standing order, so I basically never see that money, therefore I'm never tempted!

Try to use the "Save £12K in 2013" thread or similar: by setting yourself a monthly target, you'll then enter in a competitive mindset with yourself and will always try to match or beat the monthly target, and that will be your "reward" as opposed to spending it for yourself.

It's worth noting that apart from savings such as pension or contingency funds, it's not worth saving for saving's sake, most people put it aside towards something whether a house deposit, holidays, personally I'm also thinking I want to save now for when I want to have kids... Having a goal will definitely help your motivation!

tara747

Bit of a 'grr' update from me.

My new total is £68,258, so I saved £698 in May.

But I'm not sure how this is possible. I did a quick tot up of my spending and it came to £586. Now, I earn £2,190 (after tax) per month, so I should have £1,604 saved. So !!!!!!???? And this is not the first month I've thought this. Where is my money going??? :eek:

I'm no auditor, but by golly I'm going to go through my accounts and see what on earth has happened.

I have a lot of accounts and move money about to maximise interest... if I can't keep up I'm seriously considering having EVERYTHING in one account so that I'm not doing lots of transfers.

tinkerbel

Have you definitely checked all accounts Tara? Are you looking at different dates (I.e two rent payments have come out since you last looked) or something? Is there any spending you e missed? Even small things can add up sometimes? Or did you have a big credit card bill to clear from the prior month?

These are the kind of things which I find when my numbers don't tally!

Dorset82

Wish I could save as much as some of you. I only manage to save £150 - £200 pm with my wage (£1,450 pm ater tax) : (

AlwaysLearnin

Dorset82 wrote: »

Wish I could save as much as some of you. I only manage to save £150 - £200 pm with my wage (£1,450 pm ater tax) : (

I wouldn't be too disheartened with that. Up to ~14% on a modest income is okay (plus if you're paying in to a pension from your gross salary that's more you're putting away). It's £150-£200 more per month than many, and can add up quickly.

Chin up

tara747

tinkerbel wrote: »

Have you definitely checked all accounts Tara? Are you looking at different dates (I.e two rent payments have come out since you last looked) or something? Is there any spending you e missed? Even small things can add up sometimes? Or did you have a big credit card bill to clear from the prior month?

These are the kind of things which I find when my numbers don't tally!

Yes, I've checked everything. No CC bill. Only one rent payment each month (I always do my totting up as at payday). What a blimmin' mystery!!!!

AlwaysLearnin wrote: »

I wouldn't be too disheartened with that. Up to ~14% on a modest income is okay (plus if you're paying in to a pension from your gross salary that's more you're putting away). It's £150-£200 more per month than many, and can add up quickly.

Chin up

Well said. Keep going, Dorset82!