Trying to save for a deposit but I'm crap with money :(

donkingkong

Have you considered renting instead of buying?

Chickabiddybex

Why do you suggest renting? It's throwing money down the drain really. I do it and I can't wait til I don't have to!

ep015

I think you're doing well to be saving that amount and it will soon add up!

As other people have mentioned, if you do a budget plan it will really help you. A few years ago I was living beyond my means, I rarely checked my bank balance as I was too scared to see how far into my overdraft I was! I didn't think about what I was spending. Then one day, I've no idea why but I snapped and decided to get a handle on my finances. I worked out a monthly budget (you can get fancy spreadsheets but mine was just on the back of an envelope!) and I even took it to the extreme of giving myself a daily budget where I wrote down everything I spent (even if it was just 60p for a bar of chocolate). Doing this really makes you aware of every single penny you spend. It might seem tedious but actually I found it addictive! I was soon out of my overdraft and I felt so in control of my finances, it made me really happy and proud of myself for taking charge of the situation. It's nearly 4 years on now and I'm still doing the same thing (still on the back of an envelope haha)! I've never gone into my overdraft since then. Trust me you'll feel SO much better once you get a handle on what you're spending.

Chin up, you'll get there - and remember good things come to those who wait!

I should also say that my relationship with money really changed as soon as I started understanding where it was all going. It's amazing how much small amounts can quickly add up. I used to think £10 was nothing, now it seems like a lot of money to me! When I started looking at my daily expenditure I realised with horror that my morning Starbucks fix was costing me £60 a month! So cutting that out made me £60 better off each month! I started making myself a coffee when I got to work instead (which was free) Even small things like that can make a big difference. An extra £60 in your pocket each month adds up to £720 a year! That sure helped my deposit fund

opinions4u

Chickabiddybex wrote: »

Why do you suggest renting? It's throwing money down the drain really. I do it and I can't wait til I don't have to!

Isn't buying a house for £200k and selling it a few years later for £160k a better example of throwing money down the drain?

matttye

opinions4u wrote: »

Isn't buying a house for £200k and selling it a few years later for £160k a better example of throwing money down the drain?

Yes but only if you sell.

Renting goes nowhere. At least with a mortgage you have something to show for it at the end.

212

You're doing well even if you save £500 a month!

I'm similar to ep015, and I know people have said don't use your cards etc - but I find it better to use cards for *everything* that you can. Even if it's a quid (providing the shop accept it). I'd never pay more to use a card (or spend more just to reach the minimum £5/£10 spend).

I got very funny looks for buying a 50p drink from Wilko on a credit card last summer! But if you have a cashback card you're effectively 'making' money by using it, and even if not - it's your purchase so pay how you like! Obviously each to their own, and I'd be careful taking cards on a night out for instance!

That way you have a trail of exactly where your money has gone - £21 to Costa, £15 to the local pub etc. Alternatively keep ALL your receipts.

One habit I was in was to buy Costa or other takeaway hot drinks when travelling by train (or at work early). Haven't bought any for at least 2 months now after seeing on my statements just how much I was spending!

Tiglath

I echo what others have said. I've worked out a budget of everything I need (right down to the daily spending diary) and whack every extra penny into my savings early each month. We had a very frugal time the last 3 months of last year so I could get a handle on where we were and how much we actually spent; I shopped around on the food budget etc and now I know where we're going. I never go over my 'treat money' now - if that pot is gone, it's gone and I make do. I get more of a buzz seeing that little bit extra going into savings than I do on coffees and takeaways.

ep015

212 wrote: »

I find it better to use cards for *everything* that you can. Even if it's a quid (providing the shop accept it). That way you have a trail of exactly where your money has gone - £21 to Costa, £15 to the local pub etc. Alternatively keep ALL your receipts.

I totally agree with this, personally I use my card wherever possible because as 212 said you have an instant record of where your money has been spent. I usually avoid using cash unless I have to... Although one cheeky trick I have is that my partner always leaves his loose change around the flat (he doesn't like it clogging up his pockets!) - so I collect it up and treat it as my 'free' money, since it's not coming out of my account! He doesn't seem to mind! I might use it to treat myself to a Starbucks I guess it's different if you have a joint account though!!

ep015

Tiglath wrote: »

We had a very frugal time the last 3 months of last year so I could get a handle on where we were and how much we actually spent; I shopped around on the food budget etc and now I know where we're going.

I get a buzz from finding the best deals for my grocery/household shopping! I always shop around online before I go out. Then I make a list of who has the best offers and sometimes visit up to 4 supermarkets! It doesn't cost me any extra to do this as I have a travel card for the tube anyway. The only thing it does cost is time, but I's rather that than money!

donkingkong

Chickabiddybex wrote: »

Why do you suggest renting? It's throwing money down the drain really. I do it and I can't wait til I don't have to!

http://www.jamesaltucher.com/2011/03/why-i-am-never-going-to-own-a-home-again/

http://www.jamesaltucher.com/2011/05/why-i-would-rather-shoot-myself-in-the-head-than-own-a-home/

http://www.huffingtonpost.com/james-altucher/the-great-american-myth-a_b_412821.html