How to fall in love with saving money

WantToBeSE

Good evening all
Thanks to everyone for the wonderful thoughts, advice etc on this thread, it's really given me something to think about.
I was thinking about setting up a SO for 'payday' but because i am self-employed it's not regular and its not the same amount every week.
I tend to just do what EM suggests and transfer via OLB.

I try to save £50 a week, but it all depends on what clients i have that week, and whether they are agency (less money) or private clients (more money).

WantToBeSE

cathybird wrote: »

Actually I'm wondering if making savings a kind of game, one in which I compete against myself, might not work rather better. But let me give that one some thought. :A

i am very interested in this, Cathy. If you work anything out, let me know:)

gallygirl

cathybird wrote: »

Actually I'm wondering if making savings a kind of game, one in which I compete against myself, might not work rather better. But let me give that one some thought. :A

Spreadsheets are the answer (more or less regardless of what the question is :rotfl:).
Set yourself am ambitious target for the month/quarter/year etc. Keep a running total of what you've saved. Then let the fun begin :
- Break your target into daily amounts/running totals. Are you ahead/behind etc?
- What % are you at? What should you be at?
- Change colour of the cell every time you hit another 1k.
- Add your projected savings for the rest of the period. What date will you reach your goal. Is that ahead/behind target?By how many days? Keep a record.
- Assuming annual interest - keep a record of what interest you calculate you've earned - by day. How much do you need to pay to make it go up a penny/10p/next pound etc?
- Remember to compound the interest (allegedly according to Einstein the 8th Wonder of the World :T)
- What are you saving for? Something specific? Find a way to visualise it. I have an excel house. I colour a brick in every time I pay 1k off.
- Or you could do a totalometer thingy like they had in the Blue Peter Christmas Appeal - electronically or in real life.
- Come to think of it you could have a line like they had on Magpie in your house - say £100 a foot. Where would you be now? Out of the hall and into the kitchen? Dare you :rotfl:.

cathybird

gallygirl wrote: »

Spreadsheets are the answer (more or less regardless of what the question is :rotfl:).
Set yourself am ambitious target for the month/quarter/year etc. Keep a running total of what you've saved. Then let the fun begin :
- Break your target into daily amounts/running totals. Are you ahead/behind etc?
- What % are you at? What should you be at?
- Change colour of the cell every time you hit another 1k.
- Add your projected savings for the rest of the period. What date will you reach your goal. Is that ahead/behind target?By how many days? Keep a record.
- Assuming annual interest - keep a record of what interest you calculate you've earned - by day. How much do you need to pay to make it go up a penny/10p/next pound etc?
- Remember to compound the interest (allegedly according to Einstein the 8th Wonder of the World :T)
- What are you saving for? Something specific? Find a way to visualise it. I have an excel house. I colour a brick in every time I pay 1k off.
- Or you could do a totalometer thingy like they had in the Blue Peter Christmas Appeal - electronically or in real life.
- Come to think of it you could have a line like they had on Magpie in your house - say £100 a foot. Where would you be now? Out of the hall and into the kitchen? Dare you :rotfl:.

gallygirl, thanks - this is so exactly the kind of thing I had in mind. This keeps it active and it keeps it fun. :T:T:T

cathybird

WantToBeSE wrote: »

i am very interested in this, Cathy. If you work anything out, let me know:)

WantToBeSE, I think Gallygirl has worked it out before me, see her post on the thread just now :rotfl:

oh it's my thousandth post! what fun

cathybird

Eco_Miser wrote: »

I agree that moving the money straight into a notice account is a good idea, but using a standing order to do it is risking an expensive foul-up. What happens if payday is late? Unauthorised overdraft? Bank charges?
Use internet banking and transfer when you know the money is in your account.

It is a good idea, but I agree that standing orders can go awry. Also, I quite like the idea of making the transfer myself - it gives me the feeling that I've achieved something.

Eco_Miser

Yes, on the first day of the accounting month I move money around my accounts (to meet their conditions), and gather up the previous month's interest in the process. It sort of makes my income real.:)

PippiShortsock

I’m enjoying this thread too – thanks for starting it Cathybird!

You mentioned trying to turn saving into some sort of game. You might find it interesting to download the trial software for YNAB (You Need a Budget). It’s free for 34 days but quite expensive if you want to use it after that (about £38). I’m trialing it at the moment, and the philosophy that accompanies it is rather interesting. It’s based on envelope budgeting so you allocate money to different virtual category envelopes when you receive it. Everything has to be allocated so it forces you to think about short-, medium- and long-term needs and goals. It’s also got iPhone and Android add-ons which make it really quick to add transactions as you’ve incurred them during the day. Even if you don’t use it after the trial, it might give you ideas about developing a more pro-active budget and savings strategy.

What I like about it is that, instead of budgeting for a ‘perfect month’, I’m budgeting based upon my usual extravagant spending. So I’ve got £80 for work lunches, for example. Every day that I don’t buy a sandwich (and too much chocolate!) on the way to work, I get to remove £4 from that ‘envelope’ and put it somewhere else which matters more! I think it’s quite motivating.

If you don’t like YNAB, you might find it helpful to try Microsoft Money Sunset. MS has discontinued development but have made this program available free. You can use it to track your budget, direct debits, savings and investments. You have to enter it all manually, but I find that doing so focuses the mind on where the money is going.

WantToBeSE

I LOVE Gallygirls post, what great ideas!!

I think i am going to have to learn how to use Excel, does anyone have any idea where to start?

gallygirl

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WantToBeSE wrote: »

I LOVE Gallygirls post, what great ideas!!

I think i am going to have to learn how to use Excel, does anyone have any idea where to start?

Forget excel, go for the red sticky line down the hall