The "Save 12k in 2016" Thread!

tempus_fugit

The TSB 5% account is not an ISA so yes you can open an ISA in the same tax year. You will be taxed on any interest that you make from your savings but from April this year you will be able to earn up to £1000 in interest without paying tax on it, if you are a basic rate taxpayer (£500 if you are a higher rate taxpayer).

Gem-gem

Transferred over another £9 to my regular saver isa.
Once again, will fill in the form once I make my final transfer for the month.

[Deleted User]

£50 added to my regular saver account this morning. New total is £630. Hoping to add another £400 this month.

RichyRich

Nothing to report for February yet because I don't get paid until next week, but I have just changed my electricity supplier because our fix runs out on 31 March and we're now within 49 days of the end date so there is no exit penalty payable. It's only £5 per month cheaper than our current fix but it all adds up! There'll be a £15 switching bonus in about three months time too.

I figured out recently that I'm not actually counting all of my savings - every month I sweep over anything left in our joint account (which is just used for bills) into the mortgage so basically the account starts and ends at zero each month. This is anything from £50 to £100 per month so not huge. Similarly I am not counting my pension contributions through work. I was lucky to get a pay rise this year so I have increased my contributions by about a fifth of the rise I got, on the basis that I won't miss it as I've never been paid it.

I'm planning on continuing the policy of not counting either the mortgage or my pension contributions as these are other objectives to the £12k cash I aim to save this year - but I just wondered whether others are counting these types of things inside their total or not?

gwyneth_valiant

Hi RichyRich - I don't! I also don't count my Save-for-shares £££ that is taken directly from my pay nor my pension contributions.

I don't have a mortgage at the moment though, so maybe others are counting those contributions as savings??

Wentthedaywell?

RichyRich wrote: »

I'm planning on continuing the policy of not counting either the mortgage or my pension contributions as these are other objectives to the £12k cash I aim to save this year - but I just wondered whether others are counting these types of things inside their total or not?

I never counted my mortgage - that is an outgoing. I don't count my "normal" pension contribution or that of my employer either.

However I do count my additional AVC as I will take that as a lump some next year when I retire. I am putting as much as possible in it at the mo, as it is tax-free both going in and coming out. I only count the net amount saved, not the tax saving, so I have a buffer of several thousand extra pounds that should be due to me next year.

Justonething

I guess everyone has different ideas of savings. I don’t have a mortgage and I don’t count my pension contributions as this is taken before I get paid so I see my savings as what’s left after I have paid my monthly outgoings. Were I paying a mortgage I wouldn’t include that in savings as it’s an expense to be paid just like a credit card, and if I were making overpayments I’d be paying down the debt just the same as paying off a credit card early, not saving. However you could be stoozing the money by saving it to pay it back early so as I said everyone has different ideas of what constitutes savings.

The main point is to save, and for me that is to save as much as I can this year to prove to myself I can do it and to genuinely see how much I can put away. I really am impressed by the focus and commitment of many on this thread and on these forums. Some people have very little yet manage to stretch it out and still save, so every time I feel the urge to spend I take a step back and rethink.

mummytummy

Justonething wrote: »

I guess everyone has different ideas of savings. I don’t have a mortgage and I don’t count my pension contributions as this is taken before I get paid so I see my savings as what’s left after I have paid my monthly outgoings. Were I paying a mortgage I wouldn’t include that in savings as it’s an expense to be paid just like a credit card, and if I were making overpayments I’d be paying down the debt just the same as paying off a credit card early, not saving. However you could be stoozing the money by saving it to pay it back early so as I said everyone has different ideas of what constitutes savings.

The main point is to save, and for me that is to save as much as I can this year to prove to myself I can do it and to genuinely see how much I can put away. I really am impressed by the focus and commitment of many on this thread and on these forums. Some people have very little yet manage to stretch it out and still save, so every time I feel the urge to spend I take a step back and rethink.

Me too

Suffolk_lass

RichyRich wrote: »

I figured out recently that I'm not actually counting all of my savings - every month I sweep over anything left in our joint account (which is just used for bills) into the mortgage so basically the account starts and ends at zero each month. This is anything from £50 to £100 per month so not huge. Similarly I am not counting my pension contributions through work. I was lucky to get a pay rise this year so I have increased my contributions by about a fifth of the rise I got, on the basis that I won't miss it as I've never been paid it.

I'm planning on continuing the policy of not counting either the mortgage or my pension contributions as these are other objectives to the £12k cash I aim to save this year - but I just wondered whether others are counting these types of things inside their total or not?

That is interesting. I was counting just the amount each of us is putting in the HSBC 6% Regular Saver accounts but I might also keep a note of the leftovers in our running costs account that get swept into the savings reserve account behind that current account. I just need to make sure that I also remove those savings if I then use that reserve for bills (like the household building and contents insurance that will be due end of March - always a big one as our house is non-standard).

I am definitely not counting mortgage overpayments here (they are on the MFiT T4 forum!) or pension contributions (my tax on myself) as part of my savings total.

SL

enthusiasticsaver

I don't count my pension contributions but I do count my stocks and shares Isa payment as part of my savings target. The way I am calculating savings at the moment though is the difference between income and expenditure. This month I have paid for 2 holidays, 2 birthdays and 2 theatre trip tickets plus my car insurance so heavily leaning on expenditure at the moment. We don't get paid until next week though so will wait until then to declare.

On the plus side so far though I have my birthday money gifted to me, a switching bonus from first direct and monthly interest from current accounts. At present I have paid out £2837 and received £562 in so showing a £2275 deficit on my spending tracker. Our salaries next week will correct that though. I don't include account transfers as I am constantly shuffling money in and out of current accounts, regular savers and investment portfolio.