Saving 50%salary

livilove

This is my first month of having job after few years of unemployment and seasonal work.
I am writing this thread to be reminded of my saving plans and ambitions to retire early. I am careless and inconsistent with money. Though one thing I persistently do is coming on this website and get inspired and read things. So it may help me to be reminded.

I earn 1369 £/ month. I want to work further 20 years of my life and then retire. The idea I am impressed with is that I save at least 50% of salary very month and each year I save additional year of working life. I know it sounds great in theory but would I ever be that disciplined. I doubt it. I am extravagant, carefree and moody person, more to do with my right sided creative wild brain. Hence , I worked most of my life and saved nothing. I built up isa and spent it on holidays. I feel now I have to put a leash on me, otherwise I will end up like a stray dog.

Rbs website helped me to set up goals, I set two goals , isa plus for 555£ a month which i plan not to touch and saving account saving 200£a month which I may touch in emergency or for investment .


This month got first salary and I paid my credit card and I put £200 saving account and 80£ in isa.I have no debt now. Total savings to date £280. Ability to save £755 only if I don't do shopping except grocery shop.

I plan to take packed lunch for at least 3 days/ week. Saving me £36.
I plan to take bus pass. Will save money sometime, I don't have correct change and put extra 10p .
I plan to get cheap entertainment, by joining meetup hiking, walking group it will save money on gym etc
I plan to buy cheap cinema tickets once a month.
I plan not to buy new computer, Zara, jenners, primark, video cam, car, expensive scs bocille sofa on credit, or anything extravagant.

If I feel urge to spend for shopping, I will find a weekend pt job specially for that purpose. But will not in any circumstances touch my savings or alter saving plan.


So here is my pledge. I will keep updating how am I doing? I am never persistent, but this time it has to be different. I will try to be what inherently I am not. A persistent person- Let's see how it goes.

livilove

Xmas is coming and i know i will be like a boring beatle to my money pot, so thinking its good idea to get Additional part time job for those extra expenses. Just few minutes ago applied for Xmas temp job in primark. I had to apply with a new email Id as I applied few months ago for retail assistant position with them and due to the fact, I was Unemployed and desperate for work like a hungry dog , they did not employ me. I learnt from previous interview with them what to say. So hopefully, fingers crossed, I will get that 8 hours /week pt job , there is plenty fish due to Xmas period. I will keep looking for Xmas temp and I estimate I will be bringing in £50 /week additional income , enough to feed my lust for shopping and reduce extra burden of Xmas.

livilove

I just switched off printer, it was on standby mode and is always like that, burning money silently, while I am trying to save.

Pledge : I will keep a hawk eye on standby electrical items, switch off light
Whenever room is empty, use maximum use of day light and yes, i will replace tv watching activity of weekend to engaging with meetup group.

I made a packed lunch for tomorrow, RSVP for meetup 9km walking coming week(not like a hamster in paid gym) oh I am doing quite a lot for today. When I find myself shooting up like a star,it's usually like a blown up baloon without its end tied up(open end) zooooom . Will share with you (money saving community) if I see any change in electricity bill.

livilove

Please share your experiences , thoughts ,if you are on similar agenda of saving money and keep posted on here how you are doing it. Thnxxx.

lvm

Hey,

Seems like you're on track and know what you're doing with your goals.

Why not draw up an SOA with all your income and outgoings to see if you can keep up with your savings?

Something I'm finding good is if you set up a smaller savings account and treat yourself occasionally. E.g I've saved up for the new iPhone (£500-600) or it could be something smaller like a weekend away.

What's your living situation as it doesn't seem you're paying much rent/mortgage?

And what's your plans for your retirement?

Good luck with the saving goals!

grey_gym_sock

i suspect that the savings from turning electrical equipment off, instead of leaving it on standby, are pretty small. packed lunches will make a lot more difference.

Reaper

Just a thought but have you considered a pension instead of an ISA? The main benefit from your point of view is that you are unable to take the money back out of it before you retire so there is no question of being tempted.

You would need an emergency fund as well of course, but it sounds like you already have a plan for that.

edinburgher

I'm intrigued - 50% savings rate earning £1369 a month is a very impressive target!

Living on £684.50 a month for 20 years seems pretty difficult to manage in modern Britain. If it's not too personal a question, do you have a partner to split the costs with?

Some great suggestions so far - lvm suggests writing up a SOA - if you were willing to share that we might find some cost savings in your budget.

Reaper's suggestion also sounds ideal for you. If you're an impetuous, flighty creative (paraphrasing here!) tying your money up might be for the best. With a SIPP, you should be able to access your investments from age 55 and you could take advantage of the 25% lump sum for some of the fun things you'll need to curtail in the interim.

Realistically, you will need to invest (regardless of what you invest in). Cash savings for 20 years will be lucky to keep pace with inflation and while that's not a real issue in a short term scenaris when you're making hefty savings payments from your salary every month, over 20 years your retirement funds could be hit badly.

It's a nice idea, but I suppose you have to be honest and ask whether this goal is something that you will be able to apply yourself to for a prolonged period of time. If you're looking for some more radical tips, the book 'Early Retirement Extreme' is worth a peek

sorcerer

Good luck, but i think like the others said, you need to live your life as well, what you want is a good balance, invest for your future, but also don't forgot about today.

livilove

grey_gym_sock wrote: »

i suspect that the savings from turning electrical equipment off, instead of leaving it on standby, are pretty small. packed lunches will make a lot more difference.

Yes you are correct, I researched it and all standby electrical cost about 37£ per anum to an average household.I read that it's more likely to save money by heating just the right amount of water in kettle or not heating oven for excessive length of time.

livilove

sorcerer wrote: »

Good luck, but i think like the others said, you need to live your life as well, what you want is a good balance, invest for your future, but also don't forgot about today.

Thanks, I never lived frugally but I will try and see how long I can sustain it without being miser. I know it's awful to be that level of miser so I am changing strategy a little bit. instead of stretching my expenses too much , I am thinking to increase source of income. Ah my Wishful thinking is just because of the right side of mind is too active.