How to fall in love with saving money

noclaf

DireEmblem wrote: »

Very good thread.

I've practically not saved properly in years - "living within my means" was always my motto - but when you look back and consider how much you earned to how much you have left now, it seems insane!

The way I see life is that its best surrounding yourself with peoples company whom you enjoy - friends/family etc. If that means meeting up with everyone on a friday night in the pub then so be it, unfortunately nights out almost always end up in one place - the casino. So slowly/surely I've not become a hermit, but I try to exercise more constraint. I have split bank accounts now, so when I go out I can only access a small % of my earnings.

I think saving should be a natural part of life that can add value which people do not realise. For example I could get myself a mortgage, and my outgoings would be less than my current rent - but I do not want to tie myself down yet. Unfortunately this is something that we tend to learn later on in life, when it could be taught.

On another part - when I started work, I put 10% aside into my pension, and my employer contributes more. The way I see this is - if you dont have it in the first place, how can you ever miss it?

I will continue to read through your thread, but finding the right balance I believe is key.

I can relate to this...big time! I spent uni days and most of my 20's living the high life..at 32 I look back in shock at how much I spent on nights out, cars, watches...you name it.I wasnt exactly earning loads either but at some stage sense prevailed fortunately. I cant get back the wasted money but lesson learnt so all good!

cathybird

hi noclaf Some people do start saving diligently in their 20s and I take my hat off to them, but I would never blame anyone who had a bit of fun at that time of their life either - responsibilities of all sort come along soon enough and you don't get the time back. As long as you do learn the lesson Think I've learned it now but it's pretty late in life, really.

cathybird

missjames wrote: »

what is the best way to save? interest rates are so low there is no point saving in currency is there?

hi missjames! I'm actually a bit confused by what you mean by "saving in currency" - do you mean saving in standard savings accounts? ... The rates are low, but you can get between 5% and 4% on some current accounts at the moment, which is not bad - not for unlimited amounts of money though.

JoJoC

I spent wily bully from my uni days until last year (25) but thankfully didn't get into too much debt. I'm glad I realised the error of my ways last year, I think it was to do with having my little boy.

Made me want to set a good financial example!

Everyone matures financially at different rates and some never do, so I figure there's no point in regretting, just make the years going forward the ones that count!

atush

JoJoC wrote: »

That sounds good Lomcevak. What do you class as treats?

Eg my husband needed a new pair of work trousers a couple of weeks ago so went online and ordered some. This money wasn't budgeted for but I wouldn't class it as a treat either.

Either way, we had the money there as we don't budget strictly, but I was just wondering how you worked it?

No works trousers are not a treat. A new pair of casual trousers on sale Is (unless you have zero of them at present).

JoJoC

That was exactly my thinking Atush.

My question to those who budget strictly is- if they're not a treat, and you haven't budgeted for them, where does the money come from? An emergency budget? Or taken from savings?

atush

JoJoC wrote: »

Atush, I do have a DD set up for the basic amount that we're able to save but the rest of our savings depends entirely on husbands weekly wage (I get paid monthly) and what he gets extra in payment for homers and overtime at work. Also sometimes I have more money left over than anticipated and in that instance, I transfer the extra over to savings.

We're not in a position where we're able to start putting money into long term savings yet and I'd be reluctant to do that, because the opportunity to move house might come up sooner than we think and our money will be tied in.

Is need to look at it in greater depth, of course, but those were my initial concerns.

Thanks for the advice though! You're very knowledgable Atush and I'm glad you share your knowledge

that is a good start (the min savings DD) and you do add to it. But once your short term savings are achieved you could switch the DD to S&S isa or IT plan, as this money is not 'tied in' in that you can cash it in if you wanted to fund a big move etc. And you could save in cash with the rest?

Thing is, after saving for 17-18 years this way, only recently have I started 'cashing' it in as I have been using plans I set up to pay university expenses (started paying in just 25 per month all those years back). I just cashed out 1900 for next term.

At the time it was all we could afford, but sure helped in the long run. That particular IT (WITAN) was up abt 30% last year. Better than the 1% or so I am getting from my cash lol.

atush

JoJoC wrote: »

That was exactly my thinking Atush.

My question to those who budget strictly is- if they're not a treat, and you haven't budgeted for them, where does the money come from? An emergency budget? Or taken from savings?

There should be an annual budget for such things either individually, or as MISC and split by 12 so that would come out of this months 1/12 of your MISC budget.

Basically, there are loads of smaller costs thruout the year that you don't put into an individual budget such as vets bills, Tv license, work clothes etc.

cathybird

The Budgetbrain software on MSE is unusual (and very useful) in that it actually does make room for things like vet bills, work clothes and TV licence, though obviously things like vet bills aren't necessarily a predictable expense. I'm crap at budgeting though - at the mo am just trying to spend as little as possible and that's about the extent of it. Should apply my mind to learning how to budget, I'm sure I could do it.

JoJoC

Thanks Atush, that makes a lot of sense.

Cathy, I'm like you, my method if budgeting is knowing how much I've got coming in, knowing how much is going out, budgeting for food, saving as much as possible and spending as little as possible.

I'm not sure how I feel about full on budgeting- if it was just me, I might consider it but I've tried to get my husband in board with the idea but he's not really that convinced by it. He still likes 'having a life' and having access to money, even if we don't necessarily spend it.

I suppose I've not really pushed for it and, in reality, I don't have the time at the moment to implement it but I'm interested in how people do it.

Hope you're all well this morning. The heavens have opened where I am...horrible day.