Freedom and Independence.

Sarahwithlove

I've started saving my emergency fund in premium bonds. You can access it within 3 working days if needed. 

Groceries are so hard to keep within budget as everything just seems to keep going up in price. 

debtfreewannabe321

Morning 😀
I am also working to a tight Grocery budget this month. I had full intentions of putting it up as we have basically four adults eating now (teens are 16&15 and both bigger than me 🤨😆) and it's been £500 for months and I've really struggled to keep it to that. However this month has been changing over of new jobs so not full wages etc from both me and DP so I'm keeping it at £500 for one more month...so I'm with you on the challenge 😆 (hopefully not set to fail haha).

My EF is in the Y B Society and it's called a Xmas saver. 6% they usually open Jan and the interest matures on Nov 1st same year. You can only pay in £150 a month for the interest at 6%. I opened one in mine and DP name. Only last month we didn't max it out as moving/ new jobs etc and some other unseen expenses. It was originally going to be my mortgage OP fund but we ended up moving house so my original EF which was in a 6% savings account with cah00t was used to pay the solicitors fees. So that's a good option too as that is easy access and you get your money out whenever you want and interest is paid as you go. I've not been able to touch the ybs account as I didn't read the small print and I don't know if interest is paid if I get it out early 🤷🏼‍♀️🤣 (obviously in events of real emergencies I would have taken it out though!) 
I'm now paying off some debts alongside building the EF up and paying the mortgage down so I've used the cah00t saver as my snowball fund account until I have enough to pay each debt off...there are some good rates out there. People on these boards are knowledgeable more so than me so they may have found better accounts (I found these accounts through diaries on here back in Jan).

BudgetingBelinda

@Sarahwithlove premium bonds look good, I would like to pop some in them next year! 👌🏼

@debtfreewannabe321 really good ideas with EF. I have a savings account linked to my bank atm, 4.35% so not great but very easy and quick to access, I much is probably why I only have £20 in?! 😬 that and life! I’ll check out some others and would like some external/out of sight longer term savings started next year.

I have DS’s eating me out of house and home, DS1 likes the finer things in life, punnet of strawberries a day, asparagus etc 😆 DS2 restricted eater so lots of beige food, must be specific brands and types but a huge appetite. Will really work on groceries this month tho, I was so close last month! 

Sarahwithlove

Premium bonds don't have as good of a win rate as they used to but for me it's more the out of sight out of mind thing. Not a case of simple transfer to my account if needed but easy enough should there be an actual emergency. 

BudgetingBelinda

Sarahwithlove said:

Premium bonds don't have as good of a win rate as they used to but for me it's more the out of sight out of mind thing. Not a case of simple transfer to my account if needed but easy enough should there be an actual emergency. 

I just tried to send set up online but have to call them as I used to have an account and at a different address. Looked it up a bit more and agree with the win rate not looking good but out of sight might be good for me! I’ve also been given some investment options from my bank that I might send some money to and do some longer term/lower risk things to see how that goes. Feels exciting to be thinking about saving! 

BudgetingBelinda

A little nod to my future…
I’ve just opened a stocks and shares ISA, a low risk, low reward one! Popped £50 in it 😆 Wild 🤪 …
Just wanted to dip my toe in! I will set up a scheduled payment in the new year/when I am debt free. It’s enough out of sight and I’m hoping a long term pot that will tick along nicely.

I want to put any surplus funds away next year as I will just spend it otherwise and with no £455+ to DMP I want that and any extra funds, saved wisely: 1) for the future, 2) for the upcoming year- holiday🤞🏼/house maintenance/car and 3) rolling emergency fund. I’m thinking these 3 prongs of savings will be my starting point. 

Any advice appreciated!

debtfreewannabe321

I think this is why I set up the ybs I don't have any other accounts with them and no app so can't transfer our easily (same for cah00t). I'd suggest looking for a good interest rate saver in an account not Linked to your main one! I'm with natw3st for everything daily so wanted another bank for savings so I didn't think to just transfer it out when I saw a nice top I liked or fancied a take away 🤣 I've lots of pots on NW set up next to my main one and I am ALWAYS raiding them!!

On an article from the hal1fax I read a while back it suggested sorting outgoings into 50% needs, 30% wants, 20% savings so I'd figure out what your needs are and how close to 50% then whatever is left 30% of that to wants (i.e holiday fund/diy/entertainment or whatever) then the 20% to savings. It gives a better work/ fun/ savings life I think as you're not scrimping so much you end up having big blow outs 😀

debtfreewannabe321

https://www.lloydsbank.com/help-guidance/support-and-wellbeing/managing-your-money/50-30-20.html

Oh woops it was l1oyds not Hfax!

BudgetingBelinda

@debtfreewannabe321 amazing thank you! Totally relate to the transferring out as wants not needs appear! 

Going to hide it away! 💯

BudgetingBelinda

debtfreewannabe321 said:

I think this is why I set up the ybs I don't have any other accounts with them and no app so can't transfer our easily (same for cah00t). I'd suggest looking for a good interest rate saver in an account not Linked to your main one! I'm with natw3st for everything daily so wanted another bank for savings so I didn't think to just transfer it out when I saw a nice top I liked or fancied a take away 🤣 I've lots of pots on NW set up next to my main one and I am ALWAYS raiding them!!

On an article from the hal1fax I read a while back it suggested sorting outgoings into 50% needs, 30% wants, 20% savings so I'd figure out what your needs are and how close to 50% then whatever is left 30% of that to wants (i.e holiday fund/diy/entertainment or whatever) then the 20% to savings. It gives a better work/ fun/ savings life I think as you're not scrimping so much you end up having big blow outs 😀

My needs will be 50% including basic groceries when DMP done, next month … It’s meant to be! 🤩 also I can certainly cut down on some of the bills, just negotiating a £50pm cost related to work that work are (hopefully) agreeing to pay from now onwards 🤞🏼 so I will send that to savings. Other utilities and needs will be worked on!