Saving Advice?

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Just think how hard you've worked for the money and is it really worth spending it on something you're not that bothered about

JonnieShah

Something which I have started doing is to work out how much I get paid per hour, after tax, and whenever I look at something I might be interested in buying, I divide the price by amount earner per hour of work after tax, and see how many hours/shifts/weeks/months worth of work it equates to. This is a real eye-opener for me. I have calculated a tank of fuel for my car costs 10 and a half hours, which is just less than half a week (25 hours).

Derivative

I am not really saving for anything in particular (other than the general future stuff like house deposit, car, safety funds, etc).

But I have a big spreadsheet with all of my (measurable) future income for the next 2 and a half years, plus any expenditure.

This is my graph if I stick to it:



Blue line is gross, red line is net (after student loan).

To me, saving isn't really a concept. I spend, I don't save. By minimising my spending, whatever is left is 'saved' I suppose, but to me that's not how it feels. Cheapest rent I can possibly get, cheapest healthy food, no purchases unless required and only eating out for social events. I live on under £30 a week after rent/bills, less than that if I can deduct odd jobs here and there.

I find that these silly games like "put the change in a cup" or £1 a day or "no spend days" are a bit gimmicky really. YMMV but I think that the best way to do things is to be honest with yourself and realise when large expenditures are actually saving you money (e-reader, railcard, larger suitcase would be three in my case). It makes no difference whether I buy food today or tomorrow, it has to be bought.

Also getting an account that is difficult to withdraw from is simply avoiding the issue which is your lack of willpower. A strong will is a good virtue to have in many areas of life and building it on something comparatively simple is a good idea IMO.

Ice_baby

I agree that saving your change and no-spend days are gimmicky, but to be honest that's why I like them. The gimmick gives my mind something to focus on. Just straight out not spending money that I know I have is difficult for me and making a game of it helps me find it interesting. Saving 16p at the supermarket isn't going to make a blind bit of difference in the long run but if it keeps me interested and focused on reducing my bills then it's priceless.

I respectfully disagree that getting an account that's difficult to access is 'avoiding the issue'. To me it's acknowledging a weakness you know you have and taking steps to counteract this weakness. Sadly, until I can buy willpower off the shelf, I need help to keep myself on the straight and narrow when I'm not feeling strong.

If I have a lot of money in my current account or a single easy-access savings account then I will spend it.

(Actually willpower makes it worse because instead of frittering say £3 on a magazine, I'll eventually snap and go on a crafting binge and spend a small fortune.)

I know this (been hammered home recently) so I'm changing my accounts so the account I use day to day will only have the money I intend to spend that month. Yes logically it isn't changing anything but it is changing how I feel about the money, which makes all the difference.

Once the money is allocated to say, my emergency fund, it's spent in my head and I don't count it as money I can spend. My money has to have a purpose - or I'll find it one. And if I'm blue, that will be comfort spending without thinking it through.

jessica-jane

I have set up direct debits from my current account, so that as soon as I get paid the money for the main bills except food go into our joint account, a direct debit goes into my ISA and another into a second account to fund driving lessons. Then everything left over in my account is for food my phone and anything else I need. I also have online banking which I check regularly and sometimes think I have spent too much although my account is never overdrawn. I don't have a credit card and everything I buy I pay for there and then if I cant afford it I save up for it. I have a small amount kept in my current account for an emergency incase anything crops up.

My parents think I am good with my money but I have just learnt from their mistakes.

berthorn

bbjohnny wrote: »

A kick up the behind would be helpful right now. I will need a newer second hand car by the winter time and so far I've only saved £500. I 'could' have saved £1000 by now. I know all the rules, I know how and where to make the cuts - I'm just not flipping doing it. I drew £300 out of my savings this month instead of putting the planned £200 into them. I could kick myself!! In fact I think I will.

Does anyone have any little saving tricks that are helping them to save at present? The MSE mantra 'will I use it' doesn't work for me - I'll find a way to use it.

Does carrying a photo of the thing you want to buy help you? Or have you got your own little mantra that helps? I'm going to have a clear out of the cupboards shortly to refresh my mind of all the things I have that can be used up (like craft supplies for my little man, Christmas bits, toiletry gift sets, tins of food etc).

goos advice! thanks

mandatory

Like Derivative I have a spreadsheet but it is nowhere near as complicated and I don't have a graph. Instead I have monthly sheets with tables, one for my current account, credit card and deposits I make into my ISA and savings accounts. The totals are linked to a savings sheet which summarises what I have in each account, and another sheet that I can play around with and estimate what I will have at the end of the year if I deposit X amount into my account each month. It allows me to work in large expenditure and see what I can realistically afford to save each month.