Saving, the only way forward

8701

Hi Guys....

i originally used to come on the MSE forum to find bargains, even when i coulndt afford to i'd still buy that very tempting bargain

im 27 next week and i was thinking i have nothing to show. so ive decided from the 27th of July (my bday) i will practice saving and hopefully have enough for a deposit on a on a house on the outskirts or even out of London in 10/15 years.

this is how i plan on doing it...

- buying a bicycle to cycle to work as a weekly bus pass costs £18
- spending less that £2 for lunch perday or taking packed lunch
- finding a cheaper place to rent, current studio is £675 p/m (w/o bills)
- asking for a pay rise on my £8 p/h temp job (28hrs a week)
-finding the best bank a/cs


my websaver ive had for years says 'Interest rate: 0.10% Gross pa' and i was so sure i opened a 3% AER ISA but checking online it says 'Interest rate: 0.50% Gross pa'

im sure i can get better rates right?

MoneySaverLog

8701 wrote: »

Hi Guys....

i originally used to come on the MSE forum to find bargains, even when i coulndt afford to i'd still buy that very tempting bargain

im 27 next week and i was thinking i have nothing to show. so ive decided from the 27th of July (my bday) i will practice saving and hopefully have enough for a deposit on a on a house on the outskirts or even out of London in 10/15 years.

this is how i plan on doing it...

- buying a bicycle to cycle to work as a weekly bus pass costs £18
- spending less that £2 for lunch perday or taking packed lunch
- finding a cheaper place to rent, current studio is £675 p/m (w/o bills)
- asking for a pay rise on my £8 p/h temp job (28hrs a week)
-finding the best bank a/cs


my websaver ive had for years says 'Interest rate: 0.10% Gross pa' and i was so sure i opened a 3% AER ISA but checking online it says 'Interest rate: 0.50% Gross pa'

im sure i can get better rates right?

Yes, you need to shop around for the best rates and be prepared to switch every year.

BTW: we share the same birthday

cashbackproblems

8ph isnt ever going to buy u a place around london, you need to get a better job!

Sylvia1982

Hello 8701,

You don't mention who you currently bank with? do you have an ISA? as i personally believe you should use your tax allowance first before anything else.

Good luck on saving on your house deposit as in 10-15 years you should have a good size deposit

atush

You need to cut down your expenses and increase your income. you need to work full time, and you need to find a better rate of pay/job too.

The bike sounds good, but i;d make it a 6 mos of the year thing as biking in the cold wet snowy winter is uncomfortable and can be dangerous.

If you make a packed lunch everyday and cut down elsewhere you will be able to afford the bus in winter.

Don't waste money. Dont' pay for a phone contract where you don't use al the mins/txts. Go PAYG.

bodmil

Definitely work on the job front, you can only save what you bring in after all! There is certainly no point looking forward 10/15 years without doing the best you can right now to help yourself. Do that and you might be able to afford a house in 5 years time.

Timingthemarket

A better salary if possible. A few % in a bank account won´t do much otherwise.
Put some money in the markets. Now an inverse etf in US stock markets is a good idea. Always with a stop if the unexpected does occur though. That feeling comes with practise. But it takes some dedication.

SallySunshine

TimingtheMarket,
are you for real?

I hardly think advising a 27yr old on a low salary to invest in the U.S. market is helpful:rotfl:

mark55man

SallySunshine wrote: »

TimingtheMarket,
are you for real?

I hardly think advising a 27yr old on a low salary to invest in the U.S. market is helpful:rotfl:

I agree - bonkers advice

However OP you could look beyond savings accounts as a place to invest your money - but you need to be sure you cope with the risk it can go down in return for the possibility it may go up by a greater amount

SallySunshine

I give up:eek:

edinburgher

Now an inverse etf in US stock markets is a good idea. Always with a stop if the unexpected does occur though. That feeling comes with practise. But it takes some dedication.

Person suggests biking to work and making packed lunches - you suggest trading strategies :eek:

8701 - great ideas for getting you started, but as others have said, you're never getting a house anywhere near London on that. I earned double that when we were in London and I was on a low wage for that part of the world

Also, ever considered leaving London? You can get £8/hr in plenty of places that are a hell of a lot cheaper if you've got a useful skill, or are adaptable.