Savings Kick Starter Diary

jimjames

Eco_Miser wrote: »

So be debt free! Pay off your card with your current savings and the ebay sales, then use it to borrow interest-free if needed. In your position, and assuming your credit limit is adequate, I'd have no savings, and just carry enough cash for those things you wouldn't/couldn't use a card for - and pay the card off each payday.

I agree. You are deluding yourself thinking you have savings in one pot when at the same time running at £1000+ credit card at 20% interest that offsets it.

Eco_Miser wrote: »

I wouldn't want a £500 banger either, not least because it's likely to be more expensive in the long run.
.

It's an interesting one - I'm not sure an older car does cost more as you don't lose anything in depreciation but thats another discussion!

I think the info given actually shows an bigger underlying problem that the OP is spending more than they earn. Using a credit card to pay for car insurance for example means you are not budgeting correctly.

If you pay off a credit card with savings and then have to take out more credit to cover your bills then you are not saving you are spending too much. However you dress it up if you were saving enough you would have sufficient to pay unexpected bills as that is part of planning and ensuring you can cover costs. A credit card can be useful to pay for bills immediately but not paying it off in the 50 day interest free period will cost you far more than you get for savings.

Maybe the first thing to do is to keep a list of what you are spending and income, it does seem like you are part way there with knowing what you spend but unless your income increases I can't see any other option than cutting back on some of those expenses so you can actually save. Elsewhere it is called Living below your means so you do have spare cash at the end of the month.

First thing to do - pay that credit card off and then try not to use it again.

Jonesy135

Do you use it often enough to be cheaper than paying each visit? Do you really enjoy sitting in the dark watching moving images on a big screen that much?

Definitely use it yes, I go at least 3 times a month so defiantly get my monies worth! I know it's a complete luxury though but it keeps me off the streets. And now with the phone and gym discounts (below) it more than mays for its self

Do you actually go to the gym regularly?
5 days a week, it used to cost 46 a month which included all classes, but they stopped doing the class I wanted so I've dropped down onto the next level of membership down so saving a tenner a month!


If your current plan is costing you £20 more than PAYG would, maybe you're on the wrong plan.
I can't go to a lower plan just yet and I didn't go payg as I would have to still buy a phone separately. And I use my phone to plan my life! Including personal, work and uni. I did save a tenner a when I upgraded though it's still a star!!

That's quite a lot, Do you really enjoy the snowboarding that much?
With out getting to pathetic and depressed, I took up snowboarding recently because it's something that I really enjoy and since breaking up with my girlfriend ( and realising I don't actually have any friends) it's a great way to meet new people and help me to move on. Also I joined a club for £15 a year and that saves me about 7 quid a session (it should be £32 for the session I attend.) and I absolutely love it


You've identified the possible savings, now justify why you won't make them.
I'm really worrying that I'm coming across as a bit of arrogant git who wants every thing and is refusing to change!!
I concider every penny that I spend, do I really need this? If not, is the Emotional justification enough?
I rarely pay full price for anything. And always try to put at least 10% of my after tax salary into savings every month

I rarely buy clothes unless I have too, I don't go out every weekend like most of the people I know
And I do try and cut back as much as I can without going stir crazy!

I guess I'm just a bit worried of getting to the stage I did 18 months - 2 years ago were I was so fixated on paying off mine and my (now ex) girlfriend credit cards that I was utterly miserable! I didn't eat properly because, why spend so much on food when I can eat less and pay more off the cc? I never went out or did anything except cinema once a week, I never saw friends, so all I had to do with my time was stress about money and uni!!!


Your friends are dependant on wearing contacts and going to the gym? Friends, hobbies, and having fun don't have to cost a lot.
No they aren't dependant on that but my contact lenses suit my life style, I hate glasses and have never gotten on with them, glasses don't go we with running or snowboarding or swimming etc. and I even managed to save money with these as I used to use dailies which cost 30 quid a month as opposed to a tenner for monthlies! And also the gym has nothing to do with friends. Personal health is important to me, as I want to live a lot and healthy life, plus there is a history or heart problems In my family! And being healthy and looking good is a big confidence/ self esteem builder!!!




Thank you for everyone else's comment the too!! I think I will be paying off my cc with most of my savings (not all as I know I'll have to have a new clutch In the new year and I am not putting anything else on my cc it I can help it!)

Citricsquid- I read all of that and the sims analogy makes a lot of sense! That is pretty much how I'm think all this through! The day I save 30K will be the day I buy a house though!

ALM2013

Well done for actually getting into this frame of mind Jonesy. Still have a life, still enjoy the good things in life. Have a look at the following threads in the savings / debts sections. They are both great ways to save!

https://forums.moneysavingexpert.com/discussion/4734648
https://forums.moneysavingexpert.com/discussion/4320309


Do you read books? Since I started worrying about money I started reading crime novels as it totally takes my mind off things. I'm now on my 4th and have bought another 15 on ebay for cheap.

Just try not to think about figures all the time, it will become an obsession.

Good luck!

Jonesy135

ALM2013 wrote: »

Well done for actually getting into this frame of mind Jonesy. Still have a life, still enjoy the good things in life. Have a look at the following threads in the savings / debts sections. They are both great ways to save!


Do you read books? Since I started worrying about money I started reading crime novels as it totally takes my mind off things. I'm now on my 4th and have bought another 15 on ebay for cheap.

Just try not to think about figures all the time, it will become an obsession.

Good luck!

Cheers ALM

i do love reading, i haven't got round to it in ages though!

ive got loads of Harlen Coben and Micheal Connely books i need to get through!!!

Thanks for those links that looks good, that virtual sealed pot is a great idea! and i know (from saving change in a jar last year) that a few pence here and there really adds up!

i started an actual sealed jar last week, any £2 coins i get given i through in a draw ... i currently have £2!! lol you have start somewhere i suppose!

Ill have a read through those links now!


Cheers

Wilkins

Do you run? Is there a Parkrun near you? This is a free weekly event where you can meet lots of new people interested in keeping fit, like you.

Jonesy135

I know there are some park runs near to me but they are all at least a 20 mins drive away!
makes it a bit inconvenient! and i dont want to drive all that way only more my knee to give in again! lol

Jonesy135

Right so a little up date:

payday was slightly early this month woo lol

i had a good night out in manchester too, first time ive been out on the town in nearly 4 years!! :eek:

Anyways i've taken some ideas from ALMs links

and transferred £41.76 in to a savings account, (rounded it up so that my current account holds a round number in it)

and i spent less on my night out than i planned so but the £20 cash i had left into my cash savings, so its now a nice even £800! woo

And i bought some clothes earlier in the month with 10% off but the next day got an email with 20% off!! so i re-ordered and returned the old stuff... so just waiting for that refund, that will top up my savings!


I think that this month, instead of taking out my usual £200 cash spending money for the month that ill take that cash out of my savings and instead transfer £200 form my current account to my credit card! (my bank is miles away so is a hassle to get too, the downside of living in a small town i guess)

jimjames

Well done, that all sounds very promising for you.

The big question though - have you paid off your credit card yet? And if not, why not?

Jonesy135

I haven't paid it off yet

I know it'll cost me more money to not pay off my card with may cash savings, but my past experience has been to pay it off then something crops up and i end up having to spend on my CC again! which again i know is cheaper, but it doesnt help with my goal of clearing my CC and keeping it cleared!!

so im going to keep 500 quid cash and use the 300quid left to start paying off my CC. then i think illl be able to take £200-£300 off a month untill its gone

Eco_Miser

Jonesy135 wrote: »

my goal of clearing my CC and keeping it cleared!!

:wall:That goal doesn't make sense if it's costing you money! It doesn't make sense anyway, because short term (until payday) borrowing on a CC is usually free.