too skint to start saving?

cornishchick

I know it's not a lot, but I have a cash back account, every month the bank pays me X% on utilities, phones, council tax ect. It amounts to approx £6.50 is amonth. I move this over to my savings,which now stand at about £400 , along with any windfalls, interest and presents.

Along with this account being listed as one of the best for interest, if that changes I will move account,
It's about finding every penny you can save.

I know it's not ideal, but a 0 intrest credit card, might ride you over. If you use it right.. But be careful .

FairyPrincessk

It sounds like it might be time for you to track your spending and create a budget. You may find it helpful to go through your expenditures and colour code them--one colour for food, clothes, treats, utilities, housing, transport to work, transport for fun etc. You won't know how much you can afford to save until you know how much of your income is discretionary. Once you know that, then you can start to think about your priorities and determine what portion of that discretionary income needs to stop being discretionary and start being savings.

Honestly, the hardest part is writing it all down and looking at the numbers. That part is scary, but after that the only way is up.

We found it much easier initially to just save our designated amount all into one place. It grew much faster that way and when we had to take money out for emergencies we could still see that we were progressing even if we sometimes took a step back. Once we had a full emergency fund we started splitting it into different accounts for different purposes.

And to answer your initial question--yes I have been unable to save before. It involved food banks and charity. There is no shame if that is the position you're in, but if it isn't the comparison can help you to get some perspective and think carefully about what really matters to you. It is because I know that position that I was motivated to save when it wasn't impossible, but merely difficult.

GreyQueen

There are tens of millions of bicycles in the UK. Many aren't being used at all. Ask around, look on freegle. Even if you have to pay for one, you should be able to get a 2nd pushbike for a couple of tens.

Of course, your hubby probably won't get exactly what he wants first time out, but that can wait for another day. You can build fitness just as well on an old bike as a new one. You can also build fitness by walking, although the time taken for journeys is longer.

lessonlearned

Dill. Do you have an outside washing line. If so we are in for a spell of fine weather so you can do all your washing by hand and then let it just drip dry on the line. Laundrettes are extremely expensive.

I managed without a washing machine for three years with just a small spin dryer. Towels and sheets I just soaked in the bath with soap powder. Hand rinsed them and then spun the excess water out.

To get back to your question of how to save. I would advise a "slash and burn" policy.

1. A moratorium on all unnecessary spending. No extras, no treats, no takeaways, meals out, no clothes etc for at least three months, preferably longer, try and last until Christmas, it's only 6 months but you should manage to save quite a bit. Just pay the bills and put food on the table and then think twice about anything else.

2. Have a good clear out, then get car booting, ebaying whatever. Anything you make (and it's surprising how quickly it adds up) gets chucked into the emergency fund.

3. Do a food inventory and have a use up month. Go through the freezer, fridge and cupboards, using up everything and just buying top ups like milk, bread and vegetables.

I would be very surprised if these three measures alone don't get you enough to buy a washing machine within three months.

Ok it might Sound very extreme and not be your idea of fun living so simply but it's only likely to be temporary and it will get you out of the mess and give you a head start on building up savings.

Then you can start to address the longer term issues and start budgeting.

Do an SOA. Go through everything to see where you can cut back, including your grocery bills. Keep a spending diary to monitor every day spends.

Just keep,monitoring your spending and keeping an eye on cash flow. It's surprising how and where you can make gains and savings once you get going.

Try to look at it as a challenge rather than a penance, treat it as a game.

Dill

lessonlearned wrote: »

Dill. Do you have an outside washing line. If so we are in for a spell of fine weather so you can do all your washing by hand and then let it just drip dry on the line. Laundrettes are extremely expensive.

I managed without a washing machine for three years with just a small spin dryer. Towels and sheets I just soaked in the bath with soap powder. Hand rinsed them and then spun the excess water out.

No outside line and no spinner, unfortunately.

tori.k

we live on a tight budget due to overpaying debts and needed to get an emergency fund in place so started a penny saver (a broke version of the pound a day challenge) been a dead easy habit to get into, day one save a penny day two a tuppence...and so on buy the end of the year you will have saved £667

Dill

tori.k wrote: »

we live on a tight budget due to overpaying debts and needed to get an emergency fund in place so started a penny saver (a broke version of the pound a day challenge) been a dead easy habit to get into, day one save a penny day two a tuppence...and so on buy the end of the year you will have saved £667

That sounds brilliant! I can see November and December getting a bt pricey though :rotfl:

tori.k

I started it in reverse 365..364 this year but plan to start another one end of October the right way round this will cover the cost of Christmas next year would still be less than a £1 a day over the Christmas period.

Islandmaid

Last year I cut down to the bone and managed to save £100 pm - it goes straight into a savings account on payday, and the account is 'hidden' on online banking, so that I can't be tempted = £1200 a year

Got rid of sky, stopped drinking during the week (was partial to a glass on wine of an evening) - the one luxury we kept was 'date night' 2 drink max on a Friday night, sometimes a takeaway (£10 ish) sometime a fridge raid to use up leftovers (more usual)

Break your basic bills into weekly amounts and do the same with you income, then you will see how much (in theory) you can save and set a realistic saving amount.

This year our savings paid for youngest's DS 18th birthday and towards our holiday - the intention is that from now, it will pay for Christmas, and our home/contents, and car insurance - this will cut down on monthly costs - a year of carefully watching pennies will free up £50 pm, which I intend to add to monthly savings to save for emergencies and when a good lump is saved, will overpay the mortgage a bit a a time

We are very lucky in th scheme of things and I know that, but we hope to have a 3 month 'buffer' saved which will go into a separate account for any future just in case moments.

suki1964

I save loose change in jars all year round and it's surprising how it all adds up. Even saving coppers will pay my road tax £30 each year

Yes finding the money for savings can be daunting when you are living pay slip to pay slip but it really can be done ith determination.

You like to buy the odd book or cd, these are luxuries. The library lets you read books, listen to CDs and watch movies FOC.

Use the library and put that money aside

Takeaway one a week? Learn to fake away. Put the difference in savings


Buy lunch at work? Take pack up


Yes it's all so boring, but believe me, once those pennies make pounds and you have your first hundred saved you will want to start saving more

I sell on FB anything and everything not seen the light of day for a few months. We also car boot junk - all goes into my money boxes

If you claim certain benefits and can save a certain amount each month, then the gvt tops that up for you by quite hefty amounts, you will have to google the exact deals and t&c's. I remember hearing about it but we don't qualify so I switched off

But it really is worth saving as much as you can. You never know when things may become tougher for you, it's always good to have a little cushion then none at all