Finding it hard to save, whats the best way?

BrookesAndrew

Yes I am going to do that this month. Just going to write everything down I spend this month from the 27th until the 28th next month (my next pay day) and I will just see what I spend on what. I think everybody is right about the food. It will be good to see what my money is going on.

mintedmatty

JohnRo wrote: »

I agree, it's really about self discipline and learning to be frugal, rather than just thinking about it. Uncomfortably so, in the short term, if that's what it takes to get to where you really want to be longer term.

It's not worth worrying too much about the best place for your money until you've got enough to worry about and have it rolling in. Personally I'd favour a regular contribution to a stocks and shares based monthly income plan of some sort but that's not advice and based more on my own ideology.

100% agree with above, some form of ISA where you are less likely to touch it. At any scale whether its £10-£10,000 those first couple of months you think 'I could afford to buy X and that will be really good' This seems to be where most new savers fall off the wagon!

Then over time, you begin to see the interest start to grow each month and the motivation increases, you begin to think how much you could save if you didn't buy the trainers/t-shirt you wanted?

Then after many months/years/decades of saving and like many on here, you become addicted to saving and everything you buy you have that nagging feeling inside 'do i actually need this?'

Remember, the first small steps are always the hardest! Oh and buying the pair of Onitsuka Tiger trainers I promised myself 6 months ago and still haven't bought!

JohnRo

There's really no good reason why you can't do both those things at the same time, cash savings and squirrelling some of your income away into a much longer term, more difficult to get at, investment account/plan of some description. It's just about setting them at the right levels for you at this stage.

The issue with long term investment is that the choice - and charges - on offer are quite overwhelming when new to it all and picking something that really suits your situation, risk tolerance and requirements for the long term is far from easy to get a handle on in the early stages (or ever in my case). What's fantastic is that places like MSE forum are available where there are some very good opinions and advice on offer from people who've travelled that road and walked the walk.

The starting point, as others have said, is to make a proper budget and spending plan, try to nail everything down, and then stick to it as much as humanly possible, which of course is much. much easier to say than do, and much more so for some than others. It's "boring" but it should prove very effective.

atush

A very important part is one, to know what/where you are spending (and the OP is promising to do a diary) and to have a cash emergency pot (not a RS or a S&Sisas) to prevent them going into debt. No point in saving, then having to pay 19-30% interest on a CC etc because you couldn't afford a new fridge, or a train ticket to see granny in hospital before she goes.

THEN you can squirrel it away in harder to reach places.

It will be very interesting to read the results of the DIARY, If the OP is honest and writes down every pound spent.

thecoldstreamer_2

No council tax? Electric/gas? Tv license ?

BrookesAndrew

thecoldstreamer wrote: »

No council tax? Electric/gas? Tv license ?

I live at home with my Mum. I pay rent, council tax, part of the internet bill, water bill. I pay gas and electric as well but I haven't had to pay that yet because my Mum has handles all that. I budget to spend a £100 on food. I do buy a lot of things out, like lunch, dinner with my girlfriend.

With my phone insurance which I did see a post that I should cancel it. I have an iPhone 5 which at the moment a brand new one is £500. Even with the new ones coming out its still around £450 for an iPhone 5 from a shop. When I got my contract I got the iPhone 5 with it so that is why my contract is so expensive. I get unlimited texts and minutes with 2GB of internet. For me to self insure my phone I would have to save up £500. My phone was playing up a few weeks ago and I just went in the store and they gave me a brand new one. Its only £5 a month, I think the phone insurance is worth it.

BrookesAndrew

atush wrote: »

A very important part is one, to know what/where you are spending (and the OP is promising to do a diary) and to have a cash emergency pot (not a RS or a S&Sisas) to prevent them going into debt. No point in saving, then having to pay 19-30% interest on a CC etc because you couldn't afford a new fridge, or a train ticket to see granny in hospital before she goes.

THEN you can squirrel it away in harder to reach places.

It will be very interesting to read the results of the DIARY, If the OP is honest and writes down every pound spent.

I will post in this thread at the end of October my spending diary. I will be a hundred percent honest.

grey_gym_sock

BrookesAndrew wrote: »

For me to self insure my phone I would have to save up £500.

ok, so perhaps save up £500 or £1000 first, and then cancel the insurance.

BrookesAndrew

grey_gym_sock wrote: »

ok, so perhaps save up £500 or £1000 first, and then cancel the insurance.

If my phone broke I wouldn't want to spend the £500 I have just saved up. I would rather be paying £5 a month. That is the most pointless comment I have ever heard. The reason I have the insurance is because I don't want to be spending £500 on a new phone if it breaks or I break it.

I don't notice £5 a month coming out of my account. I would notice £500 coming out of my savings account though. It would take me a couple of months to save that up!

£60 a year the phone insurane costs me. I could be insured for 7 or 8 years with £500. By that time I will have moved on with the insurance and have a different phone.

JohnRo

I use a nokia mobile phone that's well over 10 years old on pay as you go.

No insurance, no bills. Had to replace the charger once, that cost £3 dammit.

Sounds to me, correct me if I'm wrong, that you're far more concerned about having the latest and greatest phone than actually saving money?