Finding it hard to save, whats the best way?

BrookesAndrew

JohnRo wrote: »

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?

The phone all together is costing me £47 a month. I don't spend that much money on it when I earn over a thousand pound a month. What people are suggesting is that I save £5 a month and then save up £500 so if it breaks then I can replace just so I can save £5. Can you not see where I am coming from?

I don't really see the point in cancelling my insurance just for the sake of five pound. I wrote this thread because I wanted help from people who could tell me the best way to save. What I should do. A lot of the posts have been brilliant and that is why I love this site. The post about me saving £500 to cover my phone just so I can save £5 a month is stupid. Can anybody not see my point of view and agree that it is a silly idea?

sufjanspirit

Brooks,

I can see what your saying. However, once you have saved £500, that money can be kept somewhere that will EARN YOU money, rather than costing you £5 a month.

Another way to look at it is this: That £5 a month covers you for that phone, at that model (And remember, you have your excess as well) £500 covers you for any phone, an even more up to date phone, and if your phone doesnt break in 6/7 years time you have made a profit, plus what you would have earned in interest.

Does this not shed a different perspective on how to be a moneysaver? Its about making your money work hard for you, but also letting you do what you want. Keep the insurance, until you have that pot. Then the Pot is far better, and free-er (bad english alert!) for you to do with whatever you need!

BrookesAndrew

sufjanspirit wrote: »

Brooks,

I can see what your saying. However, once you have saved £500, that money can be kept somewhere that will EARN YOU money, rather than costing you £5 a month.

Another way to look at it is this: That £5 a month covers you for that phone, at that model (And remember, you have your excess as well) £500 covers you for any phone, an even more up to date phone, and if your phone doesnt break in 6/7 years time you have made a profit, plus what you would have earned in interest.

Does this not shed a different perspective on how to be a moneysaver? Its about making your money work hard for you, but also letting you do what you want. Keep the insurance, until you have that pot. Then the Pot is far better, and free-er (bad english alert!) for you to do with whatever you need!

See now that is a usefull post. Not just saying something like save up £500 to cover you for your phone. Explaining why I should save up the money. Thank you for your post and yes I am going to do that.

lisyloo

Can you not see where I am coming from?

I can.
Don't let other people be judgmental about your spending.
The important thing is that you have thought it through and this spending is of VALUE to you.

Take the good advice but bear in mind not all of it is right or will apply in your case. I'm glad you are getting some advice that will help you.

cloud_dog

BrookesAndrew wrote: »

I don't really see the point in cancelling my insurance just for the sake of five pound.

As someone else mentioned, savings is a state of mind.

Whilst I probably agree with you on keeping the £5pm insurance (I would if I was walking round the streets etc with a £500 gizmo which can easily be lost, damaged, stolen) you need to stop thinking in those terms.

I don't know about you but me 'ole Nana used to say.... "look after the pennies and the pounds will look after themselves". And, this is the state of mind you need for serious savings, i.e. having to make yourself save.

Consider the Costa in the morning, or the bought lunches..... Do you really need to get those (not saying you buy these just an example).

Once you've figured out how much disposable income you have each month and also what additional savings you can make set up a SO or DD (depending), or a regular saver, in to a savings account for the day after you get paid. Whilst interest rates are primary I think RS are good for new savers because they lock you in for 12 months at a time and get you in to the 'habit' of saving.

DO NOT wait to see what money you have left at the end of each month to save...... It will not happen.

jimjames

Apart from the Penny share spam (reported) there is some good advice.

I think the very good comment above is that you need to be comfortable with your choices. It is all well that people here can point out choices but they are only ideas and suggestions - you are the one that has to decide if they are applicable to your situation.

Something I don't think mentioned so far is your bank account. If you are earning over £750pm and have 2 DDs then you'd get £5 per month plus £100 switch fee if you were with Halifax. That would cover the cost of your phone insurance!

atush

Another thing is, that you cancel that expensive contract thr min it is up- and don't upgrake your IPhone 5, as will be a good phone for years.

Another part of saving is that you don't always need the latest/best phone esp if you already have a great one. And if you wait, and then upgrade, you'll be able to get it at a better price than 42/month which I still insist is high. A Sim only deal on your phone when you finish contract can be as little a tenner a month.

As for your food spending, you need to rein in those lunches and dinners out. If the GF has a place of her own, go there and cook for the both of you. I bet when you do your spending diary that will account for a lot of your missing funds.

lawriejones1

Realistically at the moment, you won't be able to save up huge amounts - but what you can do is to get into the habit of saving money, which is much more important and something not many young people have, so good on you chief.

If you stick £50 somewhere secure and out of the way every month, save your £2 coins and stick your 1ps, 2ps and 5ps in a jar somewhere you will slowly start to accrue some money.

At your age, you need to invest in yourself - a good suit for interviews is money worth spending, a driving license and car, interests (to make you interesting) and courses to help you develop as a professional (if you want to). This is what your cash is for.

When you start to earn more, divert more into the saving - increase the £50 by including 50% of your wage increase. By the time you know it, sadly, you will be 32 like me, but you will have a decent amount of savings, be in the habit of saving and be a hot prospect for the fiscally challenged women in their late 20s.

cloud_dog

Even at my age (not too old, still young).... My wife takes a pound a day out of the tray by my bedside where I chuck all my spare change.

Then on my birthday she gives me it back and tells me to go buy myself something nice. Its very nice not to feel beholden or guilty when indulging yourself in something you would like!

jrawle

BrookesAndrew wrote: »

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.

I don't necessarily agree with the people here who are saying you must cancel the insurance. There's always a risk you will have it stolen, and the insurance probably also covers accidental damage.

However, if the phone was "playing up" then the shop should sort it out for you anyway, it shouldn't require an insurance claim, assuming it isn't playing up because you dropped it in the toilet. Those are your rights under the Sale of Goods Act, plus the phone comes with a warranty. If they sold you the insurance on this basis, they were being a bit misleading.