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Help and advice for new saver.

Morning all,


I was hoping I could get some advice and tips on how to save seriously.


I have recently just turned 24 and have started a job that pays a salary of £38,935. This salary is a massive improvement from my previously salaries that never even touched £15000, however I am struggling to get out of that "payday spend up" mentality.


Due to my previous salary, I never had a real chance to save due to my outgoings being around £700 a month after tax and pension. Now I am on a higher income, I am struggling to start saving and stop enjoying it.


Can any one advise on any techniques they have found useful to help them save? Or if you could advise any savings accounts that you can add to each month but cant withdraw?


Thank you for your time and assistance,


Tony
«1

Comments

  • xylophone
    xylophone Posts: 45,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Is the LISA relevant to you?

    https://www.moneysavingexpert.com/savings/lifetime-ISAs

    Are you using the most suitable current account (s) for your circumstances?

    https://www.moneysavingexpert.com/banking/compare-best-bank-accounts

    Have you considered Regular Savings Accounts?

    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts

    After you have built your emergency fund in cash, you might want to look at a regular investment into a stocks and shares ISA.

    http://moneytothemasses.com/saving-for-your-future/investing/vanguard-investor-uk-review-is-it-the-best-in-the-market
    might be worth a look.

    You might consider increasing your contribution to your pension, particularly if your employer will match or offers salary sacrifice.
  • Thanks for your reply, I think the LISA is a good bet so I will need to source whether my bank provides this service.


    I am currently in the process of switching my current account from nationwide to the HSBC account.


    I started this new job 6 months ago and so far have only been able to save around £2000. I was hoping for it to be more due to the amount I get each month.


    Is it worth having savings in cash? Or just locking it all away? Unfortunately, I am still a bit green when it comes to keeping a tight saving regime.


    Tony
  • tonygrace wrote: »
    Thanks for your reply, I think the LISA is a good bet so I will need to source whether my bank provides this service.
    Shop around.
    I started this new job 6 months ago and so far have only been able to save around £2000. I was hoping for it to be more due to the amount I get each month.
    Save before you spend. It's an effective approach.
    Is it worth having savings in cash? Or just locking it all away? Unfortunately, I am still a bit green when it comes to keeping a tight saving regime.
    Emergency fund. 3-6 months bet salaryin easily accessible savings. Only utilise for long term sickness or redundancy. Replenish when stable again.

    Saving for known events. Car insurance renewal. Holiday and spending money. Birthdays. Christmas. You can see them coming, so save the cash for the,.

    Saving for unknown inevitables. Your TV or phone or washing machine etc will break sooner or later. Have cash saved to replace it. Something will break down every year.

    Medium term objectives. Saving for car or house deposit or maternity leave. Once you've got a car, get saving for the replacement. Cash savings such as LISA and regular savings accounts.

    Longer term objectives. Retirement planning. Ensure you are getting the maximum match from your employer.

    While savings rates may be low, there is still a huge place for utilising cash for shorter term planning. Multiple accounts, a spreadsheet or a well organised mind are your friend!
  • I find the best way is to figure out how much you can afford to save each month (be realistic about this - if you try to be too ambitious it will make it difficult to stick to) and then the day you get paid, by standing order transfer the amount you have decided to save to a savings account. Open the savings account at a different bank so that you don't see the money every time you log into your online banking; out of sight out of mind. :o

    I have a number of different (named) accounts for different purposes; emergency fund, house deposit fund, baby fund, holiday fund, new car fund etc. with standing orders for differing amounts set up for each of them and specific target amounts I am trying to save for each. It feels good to see the progress you are making towards different targets, rather than just seeing a single undifferentiated pile of money growing with no specific target.

    I really think it is brilliant that you are here trying to find ways to get yourself into good saving/spending habits. Plenty of people earn the kind of money you do and feel they 'deserve' to just enjoy it and blow it on whatever they want. I'm impressed at you recognising the opportunity you have and trying to make good decisions that will make a great difference to your future. :beer:
  • xylophone
    xylophone Posts: 45,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks for your reply, I think the LISA is a good bet so I will need to source whether my bank provides this service.

    If you intend to use it for house purchase within the next five years or so, it might be best to save in cash - currently only the Skipton BS offers this.

    Read the link in my post above.

    As suggested, you migh open the account with £1, save elsewhere until early March and then pay as much as you are allowed into the LISA.

    With regard to switching your Nationwide account to HSBC, was this a Flexdirect account?

    It not, and you have never had a Flexdirect account, it would be worth your while to open one and take advantage of the Flexdirect Regular Saver.

    If you are opening an HSBC Advance account, there is a 5% RS that you can use.

    Remember that you can have more than one bank current account (indeed, it is probably advisable to have more than one bank account), and that any monthly pay in required to get interest can be easily managed by Faster Payment or Standing Order.
  • Katiehound
    Katiehound Posts: 8,131 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    and if all that sounds really hard work and even boring then I suggest you make just one of your savings accounts be a way of saving for a special holiday- that way there's some fun built in!

    After a while it is great to see that you have some money behind you , and that you can increase it every month- and be rewarded if you pick a RS that gives a decent interest rate.

    Stick with it!
    Being polite and pleasant doesn't cost anything!
    -Stash bust:in 2022:337
    Stash bust :2023. 120duvets, 24bags,43dogcoats, 2scrunchies, 10mitts, 6 bootees, 8spec cases, 2 A6notebooks, 59cards, 6 lav bags,36 angels,9 bones,1 blanket, 1 lined bag,3 owls, 88 pyramids = total 420total spend £5.Total for 'Dogs for Good' £546.82

    2024:Sewn:59Doggy ds,52pyramids,18 bags,6spec cases,6lav.bags.
    Knits:6covers,4hats,10mitts,2 bootees.
    Crotchet:61angels, 229cards=453 £158.55profit!!!
    2025 3dduvets
  • Eco_Miser
    Eco_Miser Posts: 4,935 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The keys to saving are increasing your income (you've done that), and minimising your spending.
    Keep a record of everything you spend for a month or two, and consider whether each item was worth what it cost. Did you need it? Could you have got it cheaper?
    Try to spend no more than you did on that <£15k job. You managed on that then, why can't you manage on that now? (There are reasons, including increasing prices, but you should be able to justify any extra spending).
    Eco Miser
    Saving money for well over half a century
  • bobobski
    bobobski Posts: 771 Forumite
    Seventh Anniversary 500 Posts Name Dropper Chutzpah Haggler
    Another vote for budgeting here; since I started using YNAB two years ago my savings rate has increased by around 300%. Once you start realising how much money you waste you start becoming more motivated to save instead.

    I am also a fan of having different types of savings, e.g. house deposit, emergency fund, annual bills (car insurance, MOT etc). Personally I don't count the last of these as savings per se, as you're just building up to pay a bill within 12 months (or as YNAB says, "future debt prevention"), but use whatever terminology helps you to stop wasting money.
  • richyg
    richyg Posts: 148 Forumite
    4 letters . YNAB.

    If you follow that you will be sorted.
  • If you are already switching to HSBC then I would definitely take out their regular saver at 5%. Excellent rate on £250 per month.

    On maturity transfer the lot into an LISA upto £4000 a year.

    Start with this and any surplus to £250 that you can afford put into highest rate of interest you can find on instant access.

    Have you closed your Nationwide account as part of the switch ? If not go for their regular saver. Also 5% on upto £500 per month and instant access to your money.

    You are the same age as my two eldest and they struggle to build up savings because something (normally a trip abroad) always crops up. That's just being young and you are not alone struggling to build up a pot. Good luck.
    If you want to be rich, never, ever have kids ;)
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