Saving novice

Bettyxx

Hi

I am single mum with my own little business ( that ive built up around my son's needs working mainly at night) and the last few years have been very very hard. I'm hoping with my son going to school this sept I can get some more time to work and a part time job too and start saving something towards having a contingency fund (i have a long empty savings account) as well as for big things such as learning to drive (37 years old and need to do it!), buying a car, starting to save for a house deposit. I have also opened an as yet empty ISA for more long term saving.

Trouble is I don't really know where to start and everything I read has different advice!!

I was thinking of setting a day each month after bills etc have gone out to transfer everything over a certain amount (leaving X amount in my current account) into my basic savings account?? I am used to taking out a set amount in cash every week to budget but I'd leave a cushion in my current account just in case...

What is the best way??
Any advice would be gratefully received

Betty x

kidmugsy

Your idea seems pretty good to me. If you pay income tax, it might be wise to use a Cash ISA for your savings, chosen on some mixture of interest rate, convenience and accessibility.

psychic_teabag

Some current accounts pay interest. Eg Lloyds classic + vantage pays 3% on balances of 3k-5k. This is not far off the best savings accounts at the moment, so it avoids the need to sweep excess money into a savings account. (Or worrying about how much to leave behind earning no interest.) This particular account might not be best for you - £3000 may be a hefty sum to keep in the account to secure the interest rate, when that money would be better off in your ISA. But there may be others paying good interest on lower amounts.

Just depends on whether you need the discipline of moving the money out of your current account to stop spending it.