Saving for beginners

kangoora

Completely agree with the idea that savings should be treated as another 'bill'. Put away by standing order at the beginning of the month and forgotten about.

It's too easy to say you'll save any surplus at the end of the month. Then, end of the month comes and you think "Ahh, it's been a bad month, let's treat ourselves to a nice meal out and that 'new gadget/movie' etc" and suddenly that £100 surplus you were going to save is a tenner.

Not saying you shouldn't have fun or holidays, but let the fun be part of the budget

DigForVictory

I finally managed to affords Christmas & birthday season once I realised that putting by £20 away each month per child at the start of the month, I wasn't waking anxious in November.

Why it took me the thick end of a decade I'm embarrassed to wonder but once you start it is so easy to carry on & also you have a savings pot in case of emergencies.

Chop everything back til you're out of debt (sounds harsh but it really motivates you) then treat yourself, and then Keep Right On not buying things &/or shifting money over (just to a savings account) til you have a "cushion" for rainy day surprises, enjoy another treat, and Keep At It. Use a predetermined portion to enjoy Christmas, and carry right on...

Sure there will be opportunities, temptations etc but start by flattening the debt (& prove you can to yourself), then carry on.

steampowered

It is all about working towards sensible, achievable goals.

Do yourself a budget. Work out where you can sensibly cut expenses, and set yourself a monthly savings target.

Do budget for a few luxuries. Life is about getting good value for money - not about not spending anything !

steampowered

Bookowl wrote: »

or would an interest free credit card be better for these costs - to pay it off over a longer period?

I think you are talking about this:

- borrowing on an interest free credit card
- putting the money into a savings account
- paying off the credit card in full before the interest free period expires
- pocketing the interest

This is not a good idea for most people. You should only do it if you are extremely organised.

If you get it wrong - e.g. if you fail to pay off the card in full before the interest free period before it expires - either because you spent the money or you just forget about the expiry date - the cost will far, far exceed the benefit.

Bookowl

Hi All
Thanks for all your replies - it has given me alot of thought.
My outgoings are: rent, food & home shopping, travel, entertainment (eating out, theater & books), public transportation and beauty. I don't have insurances / petrol costs.
This past fortnight I have meal planned and taken food / coffee to work this has made a difference already that I've noticed. I currently save £250 a month via a regular saver but would like to save more by cutting back on non-essentials such as un-necessary subscriptions, food vouchers etc. I managed to get some nice shoe deals from Office on sale this weekend.
I track my spending though money lover app and am appalled to see the money I spend on eating out / eating out at work / un-necessary amazon purchases

What's a Statement of Affairs - SOA ? is it available on mse?

kangoora

Link for SOA

http://www.stoozing.com/calculator/soa.php

Use 'format for MSE' option at the bottom of the page.

Whilst I am sure people on this board will be willing to help the 'Debt Free Wannabe' board get loads of these all the time so may be worth posting it on a new thread on that board?

Just one other comment, you say you don't have insurances. Even if renting you really should have contents insurance cover for your belongings in case of fire/burglary etc.