Saving tips

SavingPixie

Hey guys,


Can anyone give me any tips on how to save properly and not touch it? We want to start saving for our own house and obviously inbetween things like Christmas, kids birthdays and cars. Any tips welcome. Thank you. xx

le_loup

Read this link:
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
It's on this site as are many other tips if you look at the top of this page.

robatwork

Put it somewhere it's difficult to withdraw.


Postal account for example, without cheque book.

matttye

Save an emergency fund first. Once you've got a decent amount in an emergency fund, you can start to lock money away for other purposes.

Eg I've got an emergency fund (separate to my main current account), money in my main current account, and then savings accounts that are locked until April, September and December respectively.

The majority of my savings is in accounts I can't readily access, so there's no way I can spend it - not that I would.

atush

I agree, have a smaller emergency cash pot you can have access too, and lock up the rest somewhere you can't get to it easily. And depending on time frame, look to investments alongside of cash accts such as S&S isas.

opinions4u

SavingPixie wrote: »

Can anyone give me any tips on how to save properly and not touch it?

The best way to achieve this is to cherish it with self discipline.

We want to start saving for our own house and obviously inbetween things like Christmas, kids birthdays and cars. Any tips welcome. Thank you. xx

Different saving pots.

An account for house deposit.

An account for Christmas / birthday expenses.

An account for car maintenance and replacement.

An account for contingency fund (illness / loss of job).

jimjames

Some good advice already, one of the key things you need is discipline not to spend any money you have already saved.

However before that the most important thing is to spend less than you earn. Unless you do that then there is no way that you will ever be able to save. So make a budget by working out where your money goes and keep a diary to record your spending. You may be surprised how much you are spending on minor things that you never expect - things like a £2 coffee each day at work would be £40 per month or nearly £500 per year. That is a lot to have build up in a savings pot.

SavingPixie

Thank you everyone some really good idea's. Emergency cash fund is a must as something always happens when you do not have the cash spare, well does with us.

jimjames wrote: »

Some good advice already, one of the key things you need is discipline not to spend any money you have already saved.

However before that the most important thing is to spend less than you earn. Unless you do that then there is no way that you will ever be able to save. So make a budget by working out where your money goes and keep a diary to record your spending. You may be surprised how much you are spending on minor things that you never expect - things like a £2 coffee each day at work would be £40 per month or nearly £500 per year. That is a lot to have build up in a savings pot.

Wow JimJam good example something that would of completely gone over my head. £500 shocking!!

atush

Do that spending diary, it is often the road to enlightenment. Never knew anyone who did one and didn't find waste.

Thrugelmir

Never borrow , other for the unavoidable things such as mortgages. You'll come to appreciate the money that you earn more. When you have to take it out of a savings account to pay for something. Makes you think more about what you are spending and the money goes further. Far too easy to pull out the plastic card. Earning interest however small the amount is far better than paying it.

patientperson

Consider a monthly savings plan with a building society. You really need to look at those accounts which are long term savings with rates not decreasing after a year. As you mentioned saving for a house there are some benefits with such as the Newcastle BS 'Big Home Saver' if you save with them and later decided to take a mortgage with them. I am sure there are many accounts possible with other BS too. There is a good 'Regular Savings' thread here on MSE.