Save £5k in 5 months?

Downsizing__for_sanity

Hi all,

I am a regular on the Old Style Board and pride myself on the ability to make meals etc out of nothing, but I really need to concentrate the mind now as I would really like to be able to be in the position to buy a house at the end of the year. We have a good income each month but somehow, any savings on the Grocery budget etc seem to get swallowed up in either the usual car tax or even a "treat" meal out since we think we are doing so well.

Having looked at all our outgoings, I think we could save about £1000 per month if we really tried. And as my OH and also my au pair are both away over the summer, I will only have myself and two small ones to cook for. I would really like to hear about any strategies that would help in putting money "out of sight, out of mind". We already save money monthly but I suppose I might feel a bit anxious if I was putting so much aside that I would be worried about going into the overdraft or things bouncing.

We are nearly in the position (but not quite) to buy a house locally in the right price range, so I definitely don't want to lock money away for even a year. I just want to not spend it! W are pretty organised about paying insurances etc yearly so we don't have any big expenses to come over these few months.

Even if it seems really obvious to you, please share your tips on saving and how I can hide this money from myself!

Many thanks,

DFS

ColdIron

Downsizing__for_sanity wrote: »

We already save money monthly but I suppose I might feel a bit anxious if I was putting so much aside that I would be worried about going into the overdraft or things bouncing.

Traditionally you take cash out of your current account and stash it away in a savings account. Well how about a current account that pays more than a savings account? Check out the threads on the Santander 123, you could get 3% interest plus cashback on your utility bills and since your cash isn't squirrelled away somewhere it's unlikely anything would bounce

There are a few conditions to be met but they are easily achieved. You won't get 5K in 5 months with it but it's a pretty nice account in its own right and you may end up preferring it to your present one

bigadaj

OP you need to do a statement of affairs and determine your incomings and outgoings and then make savings where you can. Not being able to save whilst having an au pair sounds oxymoronic but I'm sure there are reasons.

The actual amount you can save is obviously relative to your earnings, though the higher the earnings the higher percentage as many costs are fixed.

atush

I hope your OH and the Aur pair arent' away together lol!

Anyway, do post an SOA if you haven't already elsewhere here. Another thing to do with spare cash each month (at the beginning of the month) which I don't normally suggest is Premium bonds. If you tuck the money away there for a few short months, although you can get your hands on it fairly quickly, it is a little harder than with a simple savings account. With interest rates so low, over 5 months you won't be losing tons of interest, but will perhaps win a few prizes over the 4 months your money will be eligible.

This money perhaps (ie any winnings) could be considered fun money, and if you don't get any you will have to behave.

FatherAbraham

Downsizing__for_sanity wrote: »

Having looked at all our outgoings, I think we could save about £1000 per month if we really tried. And as my OH and also my au pair are both away over the summer, I will only have myself and two small ones to cook for. I would really like to hear about any strategies that would help in putting money "out of sight, out of mind". We already save money monthly but I suppose I might feel a bit anxious if I was putting so much aside that I would be worried about going into the overdraft or things bouncing.

...

Even if it seems really obvious to you, please share your tips on saving and how I can hide this money from myself!

Well, there's no point in us getting into the specifics of your situation on a public discussion board. Instead, let me point you at Mr Money Mustache (http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/), who says:

Your current middle-class life is an Exploding Volcano of Wastefulness, and by learning to see the truth in this statement, you will easily be able to cut your expenses in half – leaving you saving half of your income. Or two thirds, or more.

Realistically, the only way to get rich is to save more, which implies needing to spend less. Spending less works twice, because it leaves more income over to be saved, and it reduces one's future income expectations.

Warmest regards,
FA

claireabelle_2

Another vote for Mr Money Mustache!