How do you save?

Gigervamp

As ever, a very informative post from GQ.

With regards to actually saving money, when I spoke to hubby about the fact that we really should save some money, his reply was, "We can't."

I don't believe that, so I started saving: coppers and small change, (actually, I'd already been doing that.) £2 coins and whenever my eldest gave me his housekeeping, I'd bung a £20 note in the piggy bank with the coppers.
Then I noticed that each month when hubby put the grocery money across to the joint account, I was still about £40 in credit, so I would put another £40 cash in the piggy.

As I don't work, the only money that I have to save is the grocery money and housekeeping from sons, so it's taken a few months to build up, but I now have about £220. Not much in the grand scheme of things, but a decent amount nevertheless.

The small change, the £2 coins and the bit left over from my monthly grocery amount do build up and could so easily have been spent on *stuff* like magazines or something.

Hubby was really surprised when I told him how much was saved! He's still resistant to the idea of saving, but did give me a couple of £2 coins recently!

oldtractor

Sounds a great idea Steven Leak.
I forgot clothes. I have several pairs of essential footwear [in my case wellies!] and lots of socks, thermal underwear etc. I buy these things when they are in the Sales. I leave them wrapped up then at least when it comes to using them it feels "new" opening the packaging. I store them all together in one place set apart from my other clothing and footwear.
Gigervamp you are in the same position as me. We just couldntsave. I started like you, about 2 years ago. I also started making my own bread and baking and growing fruit and veg. I saved enough to buy kilner jars and jam making stuff,started to make jam. Last year I'd saved enough to buy a freezer. Thats been great.
I have now started a Rainy Day fund. It really does matter remaining "tight" on the purse strings and counting every penny. the temptation to ease off is great. But , with a goal in mind , it helps a lot.

Living_proof

Well done, Gigervamp. Start small and keep adding to the fund and you won't miss it and will never be tempted to break into it unless something absolutely dire happens. Once you are into the discipline of saving you won't find it a hardship at all. In fact it might become quite difficult to spend after a while!

Stephen_Leak

"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery". Mr. Micawber, in Charles Dickens' "David Copperfield".

Stephen_Leak

Another little tip for motivation.

If you have the choice between yearly or monthly interest, choose the latter. Obviously, the miracle of compound interest works a little more in your favour with this.

But also make a note of when the interest is paid. Then visit your account online every month, say "Hello" to your money and also see what it's earned.

Again, it works for me.

HappyMJ

Stephen_Leak wrote: »

Another little tip for motivation.

If you have the choice between yearly or monthly interest, choose the latter. Obviously, the miracle of compound interest works a little more in your favour with this.

But also make a note of when the interest is paid. Then visit your account online every month, say "Hello" to your money and also see what it's earned.

Again, it works for me.

Monthly or annual makes little difference. i.e A current Halifax saving account can be either monthly or annual. The monthly interest pays 4.17% gross pa which when compounded is 4.25% AER and the annual account pays 4.25% gross pa and also AER...exactly the same.

Gigervamp

Living_proof wrote: »

Well done, Gigervamp. Start small and keep adding to the fund and you won't miss it and will never be tempted to break into it unless something absolutely dire happens. Once you are into the discipline of saving you won't find it a hardship at all. In fact it might become quite difficult to spend after a while!

True, hubby gets paid next week and we're down to our last <£100 between us. There won't be any spare in my account this month to put away and it's going to be tight, but I'm not going to dip into the savings. We have plenty of food in the cupboards, fridge and freezer so we'll be fine. (Even if hubby thinks that we're not!)

Stephen_Leak

HappyMJ wrote: »

Monthly or annual makes little difference. i.e A current Halifax saving account can be either monthly or annual. The monthly interest pays 4.17% gross pa which when compounded is 4.25% AER and the annual account pays 4.25% gross pa and also AER...exactly the same.

I know.

I just prefer to see the interest being added every month. Then I update my speadsheet, like a high tech' "Scrooge".

YORKSHIRELASS

We are trying to pay off debts that we acquired when we were young and stupid so I follow the basic principle that there is no point in saving when you are in debt.

However I do put a small amount in an emergency fund every month. The idea is that this would go towards an unexpected car bill/house repair or even as last month when I had to buy DS2 three pairs of shoes!

I am not a big believer in stockpiling food myself. I dont have a huge amount of cupboard space and it feels like wasted money having tins and packets sitting there for months.

It sounds dreadful but my parents are quite comfortably off and I know they would help me if I was desperate - but I would have to be really desperate to ask them, purely because of pride.

[Deleted User]

I have a long term untouched savings that I do by transferring it to my eldest DD and she bungs it away, I know how much is in there, and she has secured a good interest rate for me.I also have a building society savings account that takes care of Christmas /holidays which I add to monthly.I also have a small savings account that I put odds and ends in out of my left over 'food purse' which adds up to 'spends for holidays and ice-creams for my grandchildren' ,and an even smaller one which I keep for unexpected things that I like to save for seperately ,i.e. recently I treated myself to soem new bedside cabinets which I had saved for.
I have a c/card that I use for petrol and odd expences that I get cash back from, but its always paid off at the end of the month and then the rest of the bills are paid by d/d, Virgin,water,Council tax,electric/gas insurance etc over a monthly budget that I worked out.I have no mortgae or rent to pay so I find I can manage fairly well .I do budget for things like holidays and Christmas and birthdays (with my tribe I have to )I have always had a budget by which all my bills got paid first, then food, then 'fun stuff' (my Happy Cash) which means I can enjoy my retirement and get to have a week's holiday in the spring, and a fortnight in the summer.I have never been one to buy anything unless I thought I really needed it, or if I did then I would save up for it .