I need motivation to save

will369

Hi guys,

Basically, I am useless at saving.

I have finally stopped gambling :j

Wasted too much money. I am only 23 years old

I take home £1000 a month. in 6 weeks I will take home £1200

I now get paid weeky, was monthly before.

£440 Rent - I pay £110 a week.
£50 phone
Friends phone (Dont ask) £35
Try and do food shop weekly = £25
Currently paying mum back for a TV = £50 a month for next 10 months

Leaves me with like £400! But it just seems to vanish. I obv need to cut out on wasting it on foods I dont need. Like buying lunch at work etc. Nights out. it is hard at my age.

I just need motivating to save. I have a pot in my room. Always seem to be going into it.

My Nan did set up a savings accoutn for me, the only way I can withdraw money is going in branch with that book. She has that book. I need to set up a direct debit, so like £20 goes into it each week. This is hopefully going to pay for my trip round Europe next year.

I want to spend my money on nice thnigs, never been able to as I would waste it on football bets.

I want a pair of sunglasses for £440, alot I know. But I want them.

Got a trip to London coming up aswel.

I made a poster with what I can spend each week, but that just didnt work.


So any help / motivation really would be appreciated.


Thanks

vouch0r

i was in a similar situation to yourself, decent wage for our age, gamble a bit (which turned into a compulsive habit) losing lots. - i highly suggest you stop gambling , you do not win in the long run and an expensive habit at that.

you can enjoy life but for me i always wanted to save, not living for today and starting to think about tomorrow is the way forward, even if it is £100 a month, it all adds up and rather quickly.

i used to buy so much stuff and in the end you may use it a few times and then it sits a corner hardly used costing you money and worth very little later on.

Swampy3k

You have said it yourself, you have picked out something you want (sunglasses) save for them, and hopefully by the time you can afford to buy them you are in the habit of saving X amount each week/month, and before you know it, you just keep saving and you end up not even noticing it's gone as after awhile you always see it as "gone" but it's just gone to the side and accumulating as time goes on

your 23 and live with your parents, maybe think a long term plan like save for a deposit on your own place, long term goal and by the time your in your late 20's you'll be glad you done it! just a suggestion!

Congrats on stopping gambling! only winner is the bookies

PeacefulWaters

I can't give you motivation. You have to find that from within.

But you can get a TV for less than £150. You can get effective sunglasses for £30.

Two ideas:

Never buy anything on credit.

Never buy anything on impulse. If you see something you want, leave it 48 hours then decide if it's still essential. It almost certainly isn't.

eskbanker

If you don't have the willpower to save (that sounds harsher than it's meant to!) then this offline account requiring passbook access may be worth further use - £20 per week will only grow by £1K by this time next year so is unlikely to fund much of a round-Europe trip if your taste in sunglasses is anything to go by! Try putting £50-100 into it and only take it out when you reach a specific target.

Also, log what you're currently spending in more detail, there will be other things you can cut back on if you really want the nice things....

And as for "I have a pot in my room. Always seem to be going into it", find yourself some accommodation with an inside toilet

DiamondLil

Thank you eskbanker, for the best laugh I've had all week.

dealer_wins

Save 10% of your net income into an account that you dont touch, and another 10% of your net inocme into an emergency account for genuine emergencies.

This will stop you borrowing for emergencies, and hopefully build up a long term savings amount for a future home deposit etc

And save another 10% of your net income for "living beyond your means"

And £440 for a pair of sunglasses should come out of your "living beyond your means" account.

I am deadly serious by the way, and if you do what I suggest you will live more financially sound than most!!

Eco_Miser

Download and read this pdf:
http://www.ccsales.com/the_richest_man_in_babylon.pdf

And for a long-term goal: for the last eight years I have effectively been living solely off the interest and dividends from my savings, the last five in early retirement. Someday you could too.

PenguinJim

Agree with everyone that you should avoid credit, start saving some money, and £440 on sunglasses is stupid, but you are only 23. No need to live like a monk just yet! Have some fun, too.

And don't be afraid to spend if it will save you some money in the long-term. A few kitchen utensils and appliances might cost you £300 in the short-term, but save you a couple of thousand over a couple of years!

Worth repeating, though: don't go into credit debt. (Use credit cards if you can get bonuses/cashback - but pay the full amount every single month, no exceptions).

Edit: wouldn't it be nice if you could pay back Mum at £100 a month? And then when that's finished, spend £100 on something completely useless and fun the following month? And then after that, £100 each month into a savings account or index fund?

atush

Congrats on defeating the gambling addiction, but keep on the straight and narrow.

I agree, you need to save but spending 440 on sunglasses- can't you find some for 200? And 50 for a phone is too high and you should not paying for the friends phone. If they are taking your money a nd not paying it back you can find a better friend. 500 as too high for a TV, you can find great ones in tesco for 350.

110 a week is high for rent at home- I charged my son 55. I think 75 is fair. Any reduction is what they charge you should go to your mum til she is paid off.

Set up a DD for pay day or day after. Save 20 with nan and 20 into a new acct you open for your trip/glasses. then you have 60 left- take out 40 for your pot and leave 20 in (try to save this as well- try your impulse control).

LookingToTheFuture_2

It's great that you're starting to think about savings at such a young age. I wish I had - I started being more savvy about money relatively late in life and I dread to think about how much money I wasted over the years on pointless 'stuff'. I've got myself on track now and I'm saving and investing so that I can retire earlier than the state pension age of 68 but I should have been in a much better financial position than I am.

The earlier you start saving the better, even if you can only afford to put aside a small amount at first. This article explains the benefits of compound interest really well:-
http://www.telegraph.co.uk/finance/personalfinance/investing/10742396/When-saving-for-10-years-pays-more-than-saving-for-40.html

It's a funny thing but as you start spending less and saving instead your whole mindset begins to change. You realise that seeing your money grow gives you far greater satisfaction than buying expensive consumer goods (like £400 sunglasses!). That doesn't mean that you have to stop living your life - nights out and travelling abroad are an important part of life in your 20s in my opinion - but you enjoy them much more when you've paid for them out of your own money instead of credit, and also knowing that you're getting the most out of your money because you've shopped around for the best deals.

There are loads of great articles on the Monevator blog. I love this one in particular about the benefits of financial freedom:-
http://monevator.com/the-hidden-benefits-of-financial-freedom/

This forum is wonderful for advice and information as I'm sure you're already aware. There are lots of threads advising on the best places to put your short, medium and long term savings. Also, the Debt Free Wannabe forum is great for finding ways to cut your spending.

Finally, well done for giving up gambling!