Money Saving Diary - dianek's journey

dianek_2

Hi all, welcome to my diary. I am on a serious money saving journey with a target of buying a house in a couple of years time. I live and work in London on an income that's below the national average. So my target is almost impossible to reach but I am determined. I hope to use this diary to stay motivated, keep myself on track, jotting down strategies and lessons learnt along the way.


I have been inspired by reading various challenge threads and diaries here on MSE forums and hope that one day my diary might do the same for someone out there.


In future, as a way to build my credit history/ credit score I might take on some debt (credit card). For now, however, I want to focus on staying debt free and saving as much as I can.


Today's the 7th of January 2015 so perfect timing to start my money saving diary with the New Year!


DianeK

dianek_2

Looking back at the week- I haven't done too bad:


1. I started this money saving diary to keep me on track.

2. Yesterday and the day before I had 2 unplanned No Spend Days (NSD).

3. I jotted down all my expenses this week. I plan to do this for the whole of January and keep all receipts so I can figure out where my money is going (or not going). My list is currently on my computer. I want to get a better place to keep my receipts instead of in my wallet which is now too cluttered. I can only think of a large envelope which I can fold and keep in my bag. I wonder what other people use.

4. Earlier in the week I had a...what I'm going to call...an "Accidental Money Saving Incident". I unintentionally saved about £7 by hand- delivering documents to an office instead of paying for Next Day Special Delivery. My intention was to not miss the deadline and I didn't want to take any chances with R0yal Mail. Delivering by hand turned out really well because not only did I save money, I beat the deadline, corrected an error they spotted on my form which would have delayed the process, plus I was able to get back my documents immediately and safely. It was nice to spot a few other people hand delivering as well. Why didn't I ever think of doing this before?!

dianek_2

I've saved £800 in the month of January. That's 6% towards my save 12k in 2015 challenge.


I've been doing some research on the best bank accounts in terms of earning interest and it looks like I might have to open several current accounts! The ISA rates keep dropping that I no longer think it's worth having one this financial year. Curious to see if in March/April there'll be any ISA that pays 2% interest.

dianek_2

I've put my name forward for a rare opportunity of overtime this Saturday at work. Fingers crossed I'll be selected and then use the money towards moving costs at the end of the month. I've been hunting for a room in a houseshare in the past month because my rent has increased by £100. It's a real setback to my financial goal this year and leaves me no choice but to get a cheaper place. The only good that has come out of this situation is that I'm now more determined than ever to save up to buy my own place.

dianek_2

Worked overtime on Saturday The work was in another department and so much easier than what I do on a daily basis so it was worth sacrificing a good part of my weekend. I rarely get opportunities to earn money so I intend to grab them while I can especially since I am ambitiously aiming to save 12k in 2015!

dianek_2

I saved £800 in February. So with 2 months in I'm at £13% of my target savings of £12k in 2015.

dianek_2

Good news on the house hunting front-after months of searching I finally got a room in a house-share within my budget. I can't wait to move in soon so I can save properly.

dianek_2

I finally moved into my new place last week. I'm loving it so far-it's quiet, clean, near a train station and bus stop, near my most frequented supermarket (10mins walk) and most importantly it's within my budget.


Of course in London "within budget" translates to "tiny". But I plan to make it work. There's very limited storage space- a wardrobe and under the bed. I've been wanting to go to Ike@ for inspiration from their showrooms which show tiny living spaces. I might get some food containers and kitchen towels but nothing else as I've already spent a small fortune moving house (deposit, estate agent fees, transport, mattress, kettle, large cooking pot etc). I can't wait for the month to end.

dianek_2

I need to get more serious about saving money in April. Spending in March was crazy but I'll let it slide because I was going through an expensive transition. Here's my plan for saving money in April:

1. Bring packed lunch to work. (I need to research sandwich options and cooked food options that are filling. I also need spill-proof food containers. I need to buy emergency snacks like cereal/ granola bars, crisps and also drinks. I would save £80 per month as I'm currently spending an average of £4 a day on lunch).

2. Use the bus. (The great thing about my new place is that the bus stop is 5 minutes away and there's a direct bus to work that takes 1 hour. Since I moved, I have been taking the bus home from work and the commute has been bearable. I've been reading a book on my k1ndle and need to get more titles. Until yesterday I have been taking a train in to work as I trust it more than the bus when it comes to traffic delays. However, the interchanges mean that the commute is an hour-same as the bus so it makes financial sense to take the bus. I just have to wake up and leave home earlier and give myself a 30 minutes buffer in case of any delays/diversions. I would save £84 per month if I buy an annual bus pass instead of an annual travel card for rail / trains).

dianek_2

I'm so glad March is finally over. I saved £100 with great difficulty because of all the costs related to moving house. The move was actually a blessing in disguise because my old rent was suddenly increased by £100 which forced me to move. Now with my new home, I save £100 on rent and £84 on transport (using the bus to and from work) per month.

Magpie100

Just wanted to say well done on your progress so far! Do you think £800 a month is a realistic savings target? If so I'm sure you can make your target.

I am now living outside of London, but I lived there from 1996-2010. I did manage to buy a flat there (which I have only just sold - it's a long story!) but I know it is tough, especially when prices seem to always be going up.

When I bought in London I was earning about £27,000. So I bought a shared ownership flat in a not-great Zone 3 area. A lot of people will warn you away from SO, but it worked well for me. I bought 50%, then staircased to buy the other half as fast as I could. Then once I owned all of it I moved out and rented it out. I'm not saying you should do this, but to buy in London you usually need to make a compromise somewhere.

Anyway, just wanted do drop in and say well done on your progress. I hope you get to your goal. M100