Time to save but I don't know where the start?!

Alleygator

Hi all,

I've just turned 20 and currently have no savings to my name whatsoever (I know, I haven't been very good). I work as a carer on a week on/week off basis and I only earn £800 a month, also I'm only on a 0hour contract so if I don't work I don't get paid. I still live at home with my parents, so living expenses are very minimal (no rent but I do the majority of the housework as dad has a 9-5 job and mum is currently off work due to ill health)

At the moment my monthly outgoings are:
£40 phone bill (renewal March 2015)
£55 car insurance (renewal April 2015)
£160 car loan (this ends 2018)
£60 petrol (I've only got a little car)
£50 Very bill

I'm very lucky being able to live rent free for now, I've always been told that the cheapest place I will ever live is at home. I really would like to start saving so in the future I can put down a deposit on a house with my boyfriend.
Any advice/motivation would be greatly appreciated as I don't even know where to start, which kind of account would be best, how much per month should go in.

Thanks in advance!

RickyC_IFSWP

Start by saving 10% (more the better of course, but don't over stretch... simply get used to the habit of saving) of your monthly income into a regular savings account. They pay decent rates of interest but require a commitment on regular savings to really get the most out of them. More info here: https://forums.moneysavingexpert.com/discussion/608697

kteara

Aim to never save less than £200. Work more and save more. Simple really.

tara747

Very bill?? What's that?

CLAPTON

tara747 wrote: »

Very bill?? What's that?

search engines are your friend but very is a online store

savingmummy

Alleygator wrote: »

Hi all,

I've just turned 20 and currently have no savings to my name whatsoever (I know, I haven't been very good). I work as a carer on a week on/week off basis and I only earn £800 a month, also I'm only on a 0hour contract so if I don't work I don't get paid. I still live at home with my parents, so living expenses are very minimal (no rent but I do the majority of the housework as dad has a 9-5 job and mum is currently off work due to ill health)

At the moment my monthly outgoings are:
£40 phone bill (renewal March 2015)
£55 car insurance (renewal April 2015)
£160 car loan (this ends 2018)
£60 petrol (I've only got a little car)
£50 Very bill

I'm very lucky being able to live rent free for now, I've always been told that the cheapest place I will ever live is at home. I really would like to start saving so in the future I can put down a deposit on a house with my boyfriend.
Any advice/motivation would be greatly appreciated as I don't even know where to start, which kind of account would be best, how much per month should go in.

Thanks in advance!

Ah this is what I often wish that I was young again and able to do exactly what your planning

My advice is to save where you can, stop any overspending however small that is and SAVE.
Pay any debt though and don`t fall for them catalogues they are evil.
Once you see your hard earned money growing into a savings account it becomes addictive!

tara747

CLAPTON wrote: »

search engines are your friend but very is a online store

Thank you This is what Bing came up with for 'very bill'... http://www.bing.com/search?q=very+bill&src=IE-SearchBox&FORM=IE8SRC

OP - your #1 rule should be: stop buying stuff on credit.

Alleygator

Thank you for your advice! It's all a bit daunting at the moment haha.
Very managed to reel me in with 10% off and buy now pay nothing for 12 months, so I stupidly bought an iPad... As much as I love it and use it a lot I wish I would have just saved up for it so I didn't have to owe any money. My bill currently stand at around £450 so if I carry on paying £50 a month I can get rid of my account in 9 months. Going to try and up the amount I payback though so I can get it over and done with.
Thanks again everyone!

IronWolf

If your income stream allows it, it would be worth setting up a regular savings account, then you are committed to putting aside an amount each month and cant touch it. They also pay the best interest rates.

tara747

Alleygator wrote: »

Thank you for your advice! It's all a bit daunting at the moment haha.
Very managed to reel me in with 10% off and buy now pay nothing for 12 months, so I stupidly bought an iPad... As much as I love it and use it a lot I wish I would have just saved up for it so I didn't have to owe any money. My bill currently stand at around £450 so if I carry on paying £50 a month I can get rid of my account in 9 months. Going to try and up the amount I payback though so I can get it over and done with.
Thanks again everyone!

Are you still in the interest-free period? If not, it'll take longer than 9 months to clear the debt with interest. Can you pay it off any quicker?

I have a rule: never pay a penny in interest to anyone (except on a mortgage, unless I'm lucky enough to buy a house for cash).

I earn interest, I don't pay it. I've just received £1,163 in ISA interest for the 2013-14 tax year. My Santander 123 account pays me almost £400 interest a year. Halifax Reward account £60 a year (I used to have 3 of these before they changed the rules, so it was £180). And so on.

Clear the debt and get saving. It's addictive

Alleygator

tara747 wrote: »

Are you srtill in the interest-free period? If not, it'll take longer than 9 months to clear the debt with interest. Can you pay it off any quicker?

I have a motto: never pay a penny in interest to anyone (except on a mortgage, unless I'm lucky enough to buy a house for cash).

I have another 10 months to go because I didn't buy it that long ago, so my plan is to pay it off before the interest free period is over. I do t want to pay more than its worth because that seems pointless haha.
I'm actually really excited to start saving as daft as that sounds! I'm starting to make a plan and everything, looking at setting myself tome goals to achieve too!