Getting into a saving frame of mind?

andy.m_2

Well thanks to everyone on this site we finally made it to being free of all non mortgaged debt, woo yeah.
Now we have a modest income left at the end of the month and I have found two accounts that pay a higher rate of interest than the mortgage payments.
My question is, we managed to get into a money saving frame of mind and paid down the debt, now, being honest, we are struggling to get into a saving frame of mind.
How do you shift your attentions and keep attention span going?
Being honest, saving is a little boring compared to paying off debt.

Paying off debt has financial benefits, interest payments are a thing of the past, more of our monthly income is our own, a good feeling.
Saving isnt fun, you barely make inflation proof profits.
I could go on but I think I've made my point.

Please help, we need a fundamental shift in thought

xylophone

If you save an emergency fund, you won't have to go into debt again if the washing machine gives up the ghost.

You might want to be able to finance a holiday.

You might want to increase your pension pots.

innovate

Well done on getting rid of your debts!

If you were motivated to get rid of them, perhaps use a similar approach for making sure you stay out of debt? Like: what would you do if e.g. the washing machine or some other essential gadget breaks? Take out another loan, overdraft, CC debt? Or pay cash from your rainy-day fund you saved up? Generally, you should have between 3 and 6 net salaries in your rainy-day fund.

There will probably be lots of other things you will want to afford at some stage - new furniture, a nice holiday, a new car, a house move, an anniversary treat etc etc. All a lot easier to afford if you have the money to pay for it!

Other things to consider is your income in old age - you don't say how old you are, but it is never too early to think about where your income will come from when you don't work any longer. Don't rely on your state pension, it's pants already and will not become better any time soon. The earlier you start putting money aside for your older days, the more time your money has to grow, and the less money issues you will face in retirement. You also get tax relief if you save into a pension.

andy.m_2

Thanks for the replies, I am 38 btw so have pension provision from the minute I started working full time. Money purchase schemes available now suck balls, I am lucky to have final salary credits from my first job.
We have a savings book at 6% and put in enough for waht we consider to be a great summer holiday fund for 2013 so I guess the idea for saving will be the same a getting rid of debt.
Break it down into manageable pieces, holiday, rainy day fund, white good destruction etc

thanks, will work on this basis and see how it pans out. :thumb: