I can officially start saving for the first time ever!

Nickyj

Morning all. I became debt free last month after 6 years of paying off £25k (I do still have a small overdraft for emergencies only) I haven't had any disposable cash to save as any spare money has been thrown at debts.

I'm currently on maternity leave (baby number 2 due in 3 weeks) so my income will half but I am filling my time before then by making as much as cash as I can. My eBay has gone mad this weekend, made about £65 yesterday and got bids up to £26 on stuff ending today with loads of watchers. I'm up to £38.50 on my one poll so will soon be able to cash that in. Can anyone recommend where I should put this cash, what sort if account etc? Far too tempting if I just leave it sitting in my PayPal account.

Also, can anyone recommend any other easy money making ideas? I've tried mystery shopping and Avon with not a lot of success. I would just love to have some savings behind me so any help would be appreciated. Thanks in advance x

atush

First of all your overdraft- is it 0? If so, save into an instant access acct. Regular savers pay more, but you don't have regular income. you could set one up to get money in from your instant access savings though. Cash Isa might be a good idea, if you plan to go back to work (plus you will have been a taxpayer this year). If you still have some overdraft, pay that off before saving.

As to earning/saving extra, could invest your spare time at home before the baby into making sure your outgoings are as small as possible by reviewing insurance/utilities etc. And looking carefully at special offers on Nappies as they are expensive so stocking up on a range of sizes on BOGOF is worth doing.

Batch cooking and freezing will pay off, otherwise you may rely on expensive takeouts in the early days/months of a new baby.

Nickyj

Thanks atush, some great advice there My overdraft will be paid off next month. I'm going to look into savings accounts this week. I will be going back to work next year.

I batch cooked my first sons baby food but wasn't going to bother this time but have decided that I will, it will save money and I will have time to do it so it makes sense really. I have also been taking advantage of the BOGOF nappy offers (I do like a bargain) Thanks for replying x

atush

I had twins and had nappies stacked floor to ceiling in their nursery before they were born lol.

And batch cook food for you hubby and your other child, not just baby food as baby won't be weaned for a while yet.

kidmugsy

Nickyj wrote: »

the BOGOF nappy offers

That certainly raised a smile.

Dazza86

I'd advised to just open whichever savings account you can.

The most important thing is to get into the mindset of being someone who saves. The interest rates are important, but they become more of a factor the more money you have in there, and really we're talking tens of thousands.

Just get a savings account with your bank for the time being. I have an E-ISA with Natwest, which a portion of my savings goes into. Now, I don't even think about the money as if it's there. It goes straight to savings and I live off the rest.

If I ever need to take money out I can, instantly. All using an iPhone app.

Congrats by the way, on both the baby and being debt-free!

MrsCautious

I know there is a lot of discussion elsewhere on this forum about the Santander 123 account -- a current account that beats savings accounts and cash isas under some circumstances.

I have just opened one to get cashback on household bills as every little helps and also to get 3 per cent interest on between five and 20 thousand saved -- apologies if this figure is wrong, someone will be along to correct me. I found it worthwhile, you may want to consider it?

When you have time, and if you have the inclination, you could add blogging to your interests to bring in a bit more money -- it takes a while and skill is involved and the chance to do it but likely not best not wear yourself out in the early days There are loads of mum bloggers bringing in income that way and stuff to review for their family on their blog. There is guidance about blogging in the up your income part of these forums if you fancy that.

Anyway, good luck, what a fantastic achievement to clear your debts. If you can clear £25k of debt, with determination and focus, I bet you could get some brilliant savings together.

sabretoothtigger

Nationwide is one of the most flexible. 2.5% and you can withdraw whenever you like, that is their regular saver

I think there is 4% somewhere but you have to be a member for a year already.
The best saving is to have no overdraft or use it for as little time as possible, 1 or 2 days. That leaves you the space to use but at the least cost

Small amounts of cash are best used to stay flexible, avoid fees, etc. Sometimes that means being to sign up for special accounts and having that flexibility like first direct are soon ending their bonus offer for £125 on their current account transfer.

You'd have to save 5k for a year to get that much in interest right now

Nickyj

Thanks for all your replies. Some really helpful info. I am really in the mindset of saving now which is a first for me. I will be batch cooking for all the family now as I will have a bit more time on my hands from now on (hopefully) thanks atush!

Thanks Dazza, I have a current account with Natwest and forever on my iPhone so will look into that.

Thanks also MrsCautious , I like the idea of blogging, I have a writing background as I work for a newspaper so will look into that too - quite excited at the prospect!

Thanks Sabre, I have had an account with Nationwide for a long time although not used it in a while and have a friend there so will ask her advice.

Have a good day all xx

MrsCautious

Oh that sounds really promising then, good luck take some time to get some good quality content and build your audience then the world is your lobster x I'm a writer as well. First time I've mentioned that on here

theseeker1

Dazza86 wrote: »

I'd advised to just open whichever savings account you can.

The most important thing is to get into the mindset of being someone who saves. The interest rates are important, but they become more of a factor the more money you have in there, and really we're talking tens of thousands.

Just get a savings account with your bank for the time being. I have an E-ISA with Natwest, which a portion of my savings goes into. Now, I don't even think about the money as if it's there. It goes straight to savings and I live off the rest.

If I ever need to take money out I can, instantly. All using an iPhone app.

Congrats by the way, on both the baby and being debt-free!

Somehow by reading posts I get a solution or advice I wanted. That's what a newbie should do first.

Anyhow, I agree to this advice.