New Saver

MrHudson88

Right Im a youngish lad now (23) and been using this site for few years. Couple years ago I foolishly spiralled from getting one payday loan to fund a holiday to getting another to pay first off and eventually ended up with 5 companies about £2000 and a credit card.

I was even younger not earning much and it was a struggle. I have since paid it off and now every month I get paid the only out goings are my board and phone bill yet I still cant save.

I struggled along paying 90% of my monthly wage out to debts to get them cleared so I could clearly survive with no money however now I can't save. I want to get a car and start having holidays that I feel I deserve but every month I get paid and withing 2 weeks wages are gone without much to show for it. few day trips and my two bills paid thats about it.

Im setting up this thread to hopefully get a wide range of advice and tips for a young member from the experienced MSE community on saving, cutting cost, earning extra cash so on majority of you will have had same problem, be good savers or have your own little ways to save. Im open to all Ideas so please help. :j

opinions4u

Working out what you spend your money is the starting point.

Keep a spending diary.

Complete a statement of affairs at https://www.makesenseofcards.co.uk and post it here.

Never buy anything on impulse. Wait 48 hours and see if you still want / need it.

Go out less often.

MrHudson88

Statement of Affairs and Personal Balance Sheet[/b]

Monthly Income Details
Monthly income after tax................ 1000
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details

Rent.................................... 140
Mobile phone............................ 40
Groceries etc. ......................... 75
Clothing................................ 20
Bus ............................ 40
Other insurance......................... 11
Haircuts................................ 8
meals at work........................... 150
Meals out with girlfriend.............. 70
Cigarettes...............................40
Gym Membership......................20

Total monthly expenses.................. 614[/b]


Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................120.......20.........20
Total unsecured debts..........120.......20.........-


Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 614
Available for debt repayments........... 386
Monthly UNsecured debt repayments....... 20
Amount left after debt repayments....... 366

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -120
Net Assets.............................. -120

Now firstly this is just outline of general month and though it might seem that 366 is alot this is based on basic month however there are always peoples birthdays I need presents for, nights out for special occassions

I do like the 48 hour rule because I have wasted alot of money buying computer games and dvd's that 48 hrs later I regret so I am definately going to introduce that rule.

also looking at this its obvious to me I need an extra little source of income and to somehow cut down my meals at work, I spend a fortune there

opinions4u

Make sandwiches at home and take them to work. I spend less than £1 a day on lunch.

Change the mobile contract to a cheaper one.

Clear the credit card in full and stop using it. Why waste interest on it?

Give up cigarettes. Www.whyquit.com.

Give up the gym and replace it with walking and jogging.

Save before you spend.

Cyrus

opinions4u wrote: »

Make sandwiches at home and take them to work. I spend less than £1 a day on lunch.

Yeah man, £150 on lunches at work is mental. They better be some damn good lunches.

atush

I agree, work lunches, and smoling are your first port of call.

But you need a spending Diary for a month as you are clearly spending more in cash (be it parking, a pint, etc) than you have listed.

MrHudson88

atush wrote: »

I agree, work lunches, and smoling are your first port of call.

But you need a spending Diary for a month as you are clearly spending more in cash (be it parking, a pint, etc) than you have listed.

yeah there are one off costs that pop up here and there over a month stopping smoking is top of my list and cutting down work dinners.

I shall keep a diary

xylophone

As you say, the canteen lunches must go! Take soup, rolls, fruit, cheese, boiled eggs etc to work - on fine days walk to the park (ditch the gym) and picnic.

Set up a regular savings account- standing order for £170 from your current account on payday. Could be an ISA.

atush

Taking money out on payday is the best idea. Been doing this for 20 years now. had paid off big time. Increase EVERY time you have a pay increase.

kidmugsy

Persuade your girlfriend to cut your hair for you.

MrHudson88

kidmugsy wrote: »

Persuade your girlfriend to cut your hair for you.

never considered an ISA or standing order before. Well iv signed up to a saving scheme at work where certain amount comes out every pay automatically so I wont miss what I dont have.

Oh and I made a pack lunch for work only spent 50p