Debt free but struggle saving...

Eco_Miser

Mustard_Seed wrote: »

Hi Eco Miser,

Thanks for your advice, just wondering if you could clarify when we save £6,000 do we keep it in those accounts or move it all to Nationwide etc

Thanks,
Mustard Seed

Nationwide pays 5% on £1-£2500, and you can get 3 accounts between you, but the high interest only lasts a year. So you can keep the TSB accounts full while you build up nationwide (or you may prefer to spread the money around a bit, so there's sufficient in all accounts to cover a transfer out of the required monthly payment). That's £13,500 at 5%, so just those two institutions will be more than sufficient for your first year of saving.

Then you might want to move £4000 to Club Lloyds, as the highest interest tier is 4% on £4000-£5000. Again you can get three accounts between the pair of you. There may be different offers by the time you need more accounts.
In all cases, check the T&Cs yourself, they could change (have done in the past), and I could be mis-remembering.

Mustard_Seed

enthusiasticsaver wrote: »

The best formula I have always found works for us is to take all essential spending off our monthly income at the beginning of the month and then divide the remaining disposable income into three. .

Thanks enthusiastic saver,

Wow mortgage and debt free that's a big achievement :T

I'm 30 and my goal is to get a nest egg and overpaying the mortgage seems like a worthwhile exercise after reading the article on it earlier.

Mustard Seed

atush

I think you need to save monthly all the income you dont require but ON payday. So if you have 200 extra, save that on payday. Into the acct above that you have chosen.

Do this until you have an emergency fund of 3 months spending. If you spend anything (such as on a new sofa) you must replace it immediately next payday.

Once you have this fund, you can split all available cash as suggested above, i'd save half for medium term spending in cash or S&S isas and half into a pension.

This will slowly build up your savings, pension and financial safety platform.

racing_blue

enthusiasticsaver wrote: »

putting a savings amount away at the beginning of the month not the end

This nugget works.

I have a standing order set up. The same day I get paid, £xxxx goes straight out into s&s ISA. Then we live on what is left over.

Mustard_Seed

Hi,

I've began steps to put your advice in place - thanks everyone it means a lot to me to have such support and guidance from complete strangers.

Much appreciated,
Mustard Seed