How much can you save?

McSaver

Rosemary7391 wrote: »

I only earn around £200 a month, so I don't pay tax anyway I'll have a look at ISAs though - never actually looked at those before! Thanks

Even if you earn only £200 a month and don't pay tax, its still useful to use your ISA allowence because you will avoid paying tax on your interest should your earnings increase

McSaver

Rosemary7391 wrote: »

I only earn around £200 a month, so I don't pay tax anyway I'll have a look at ISAs though - never actually looked at those before! Thanks

Just had a brainstorm... a Regular Saver could be very useful for you since you don't earn a lot and it will help you deposit the same amount of cash away every month. most pay 7 or 8% and Alliance & Leicester have a regular saver that pays 12% if you apply for the Premier Current Account (not the premier direct current account) and you can get £50 cashback through http://www.quidco.com for getting an account with them.

Rosemary7391

I'll take a look at those as well! Thanks, thats really helpful!

McSaver

Rosemary7391 wrote: »

I'll take a look at those as well! Thanks, thats really helpful!

Its also a good idea to click the "thanks boxes" that appear on other peoples post, It doesnt spam the forum.

with you not paying tax, you would get the 12% from the A&L 12% Regular saver... (which would pay 6.5% on an equal payment each month.) It would work out a lot better than any other savings account for a short term savings over 1 year, once the regular saver is complete you can transfer it into a normal savings account or an ISA (providing you havent used your limit up)

save-a-lot

Originally Posted by Rosemary7391
Hallo! I need to start saving - £2000 target for a new clarinet! I have most of my wages to save (I'm just 16, so no rent/food/other bills!), but have you got any other tips?

*Hopes she is in the right place*

McSaver wrote: »

You are in a very good place, work out how much money you can get by on a month at minimum and whatever is extra, just stick it in the savings accounts or an ISA which is a deposit limited account which allows you to pay in £3,000 a year and the Interest you receive will be tax-free. The best time to save some money is on payday, giving the thought of "paying yourself first" if you can save £500 a month then you will have the clarinet in 4 months time, its as simple as. The trouble is when it comes to saving cash its very difficult to start, but the money soon builds up over time.

There really is not much point using an ISA for short term savings... you get a £3000 annual allowance which is tax free. So, for example you save for a few months and then make a withdrawal of £2000, you cannot replace that £2000 in that tax year. You will only be able to keep/invest a further £1000 in the ISA for the 2007/08 year. An ISA is best used for longer term saving whereby the cash will keep earning tax free interest year on year. I intend to use mine to provide me with lump sum amounts after retirement in 28 years time for example.

You would be better off as a none tax payer using a high interest account, and open an ISA to start putting a little away for your distant future. Even if you do not max it out, it is a good habit to start now.

HTH

save-a-lot

Hi

Just to add, you are 16 and that is exactly the legal age you can start to save into an ISA. Only do it if after saving for your current goal, there is spare cash to save.

Rosemary7391

I think I will at that - they seem to be higher interest, and I have other things to save for which will take a lot longer to save for - long enough that I could tie up my money for a few years! I never really realised there were so many options for putting money away - its all a bit confusing for a first-timer! Thanks

stewart1984

Hiya guys!

I'm a newbie saver and i have a quick question.

How do you folk manage to save so well? Reading over some of the posts certain members put away £500+ a month in savings. You must all have a great level of discipline!

Anyhoo - i'm starting off small - i have £50/month going into an Egg ISA and £50/month into an Egg savings account.

I think i'm a wee bit nervy at saving any extra than that. Theoretically after i pay rent i should be left with £700 for the month. Money goes on food shopping and also mobile bill (£17.50) and car insurance (£30). My girlfriend, with whom i live with puts her wage towards council tax, water, electicity, gas and internet/phone. As i earn more than her i reckon our total outgoings are split 60/40 with me paying the larger percentage which i have no problem with.

We're trying to save up for a deposit for a house but it's difficult!

Hmmm... that's one big post to start with.

Anyway, i enjoy reading all of your posts and it's only going to help to motivate me (and my gf) in our quest to save!

Stu

JAMIEDODGER

well, last day of august and my savings total: 938.01. which is 14% of my disposable income:D i have achieved gold i think???

moneysavingwannabe

Hi,

Well done Jamiedodger :beer: savings are going well then!

Stu - I think most of the people on here save like I do.

On payday I subtract any DDs from the balance on my account and any other outgoings for the month. I estimate anything I'm not sure of like phone bills etc.

Then I transfer as much as I can into savings. I leave myself between £150-£200 a month to spend. I don't touch the savings I just make sure I don't spend any more than I know I have available in my current account.

It works for me! And yes you do have to be quite disciplined - I try not to use my CC but I have been on school hols for 6 wks so have used it more than I should have this month!

Oooh plus I have started trying on wedding dresses this week :j :mad:

Good luck with saving everyone! :beer: