How much savings to be a MSE?

Bob2000

Section62 said:

Bob2000 said:

So how much wonga do you really need to make this work?

£1.

It isn't how much you've got, it is what you do with it that matters.

Well I've got £5 so we'll on my way l guess.

Bob2000

Albermarle said:

The issue with keep changing accounts and chasing the best interest rates, is the amount you gain is not that large, unless you have a large amount of funds. So you have to decide whether you can be bothered or not and is it a good use of your time.
There is also the law of diminishing returns. So if you change from a 2 % account to a 4% one, that is a good gain. From 4% to 4.5% a smaller gain. From 4.5% to 4.7% less of a gain obviously. From 4.7% to 4.8% , then to 4.85% .
Maybe you would gain more by cutting back one takeaway coffee a month .

This is what I'm wondering reading these post folks must have loads of ££ to be swapping and changing all the time. I lose track just reading some of these threads.

Cutting back on coffee etc in that regard then I'm  a MSE all ready. 

Bob2000

simonsmithsays said:

As in any forum and walk of life there is a huge mix of personalities, savings, education, portfolios and circumstances on here.

But the core you refer to I reckon have the following in common:

- Do a lot of the opening (and admin of opening) as an interest or hobby.

- Have plenty of time on their hands to both open the accounts and record on here.  Often the dedicated threads are heaving with their, unrelated, day to day movements.

I'd suggest you don't worry about others.  Do what's right for you and your circumstances and pick and choose the advice and products as suits you.

There are some terrifically helpful and knowledgeable forumites on here.  There really are.

For some MSE and saving each and every penny is, for me, a little unhealthy.  Spending hours chasing complaints and arguments for little monetary reward and then relaying confrontational experiences back here.  I do hope they've got other activities and hobbies in their lives than just money.

There are also some that won't post at all. They just take the goodness. 

Then there are others who get banned time and again for infringements, arguments etc.

Good luck on your journey.

Yes l love taking in the goodness.
I can only work within my circumstances and so far I'm  doing OK. I'll  never be rich but I've  got more than l had 18 months ago.

Bob2000

jimjames said:

Bob2000 said:

So how much wonga do you really need to make this work?

The smaller the amount you have to start with the better your return will be and the more effective building your savings will be. £150 for opening a bank account is small change if you have £100,000 in the bank. If you have no savings at all then £150 is quite significant to helping get started.

£150 is definitely  not small change to me, l wish.
I've started  my saving journey and I'll  see where it goes.

Bob2000

Bobblehat said:

I think Bob2000 is doing the right thing ...... asking questions!

Thank you

Bob2000

Stolas said:

As much wonga as you can afford to save And as much time as you’re happy to spend researching and planning. 

If you’re already in the habit of saving, then you’re already making it work! Keep at it and the small gains will start to add up. 

The crop of bank switching incentives currently on offer have certainly helped give my savings a little boost! Plus a little bit of eBay too. 

I'm trying seriously  this year. I done my first switch in July £200

GazzaBloom

The thing I wonder, when I see people chasing interest rates up and down the high street, is whether they have maxed out their pension contributions first. We can pay in up to £60K while working and the tax benefits are far greater than a few percentage points of interest on savings from net pay. You can even pay in £2,880 into a pension when not working and get £720 (25%) top up from HMRC straight off the bat and you can repeat that every year. With many pension providers you can choose to keep cash or a cash equivalent fund inside your pension, alongside investment funds.

I have been accumulating cash for retirement this year and chose to do this within my pension using salary sacrifice contributions. The cash earns BOE base rate and does not appear to be subject to the pension annual management charge. Yes, it's potentially subject to income tax on the way out but strategic use of tax free lump sum and annual allowance gives some flexibility. I have accumulated far more cash this way than I would have with net pay.

The only cash we keep outside of my pension is our emergency fund which is held in a cash ISA with the same bank as our current account earning 2.53% and I'm not bothered with moving it around to gain a couple of hundred quid extra a year, growth isn't it's purpose.

Bobblehat

GazzaBloom said:

The thing I wonder, when I see people chasing interest rates up and down the high street, is whether they have maxed out their pension contributions first. We can pay in up to £60K while working and the tax benefits are far greater than a few percentage points of interest on savings from net pay. You can even pay in £2,880 into a pension when not working and get £720 (25%) top up from HMRC straight off the bat and you can repeat that every year. With many pension providers you can choose to keep cash or a cash equivalent fund inside your pension, alongside investment funds.

I have been accumulating cash for retirement this year and chose to do this within my pension using salary sacrifice contributions. The cash earns BOE base rate and does not appear to be subject to the pension annual management charge. Yes, it's potentially subject to income tax on the way out but strategic use of tax free lump sum and annual allowance gives some flexibility. I have accumulated far more cash this way than I would have with net pay.

The only cash we keep outside of my pension is our emergency fund which is held in a cash ISA with the same bank as our current account earning 2.53% and I'm not bothered with moving it around to gain a couple of hundred quid extra a year, growth isn't it's purpose.

Out of interest( ), what would your advice be to say ... someone who has already retired and find themselves with a unexpected modest amount of savings from inheritance (or other) after they have retired?

Eco_Miser

GazzaBloom said:

The thing I wonder, when I see people chasing interest rates up and down the high street, is whether they have maxed out their pension contributions first. We can pay in up to £60K while working and the tax benefits are far greater than a few percentage points of interest on savings from net pay. You can even pay in £2,880 into a pension when not working and get £720 (25%) top up from HMRC straight off the bat and you can repeat that every year. With many pension providers you can choose to keep cash or a cash equivalent fund inside your pension, alongside investment funds.

That's very nice for money you can afford to have inaccessible until the government of the day let you access it (used to be age 50, what will it be in 25 years time?)

For money you want to spend before then - a house, a car, a holiday, children's school fees, or just the lumpier part of day to day spending - a pension is worse than useless.

Albermarle

Bobblehat said:

GazzaBloom said:

The thing I wonder, when I see people chasing interest rates up and down the high street, is whether they have maxed out their pension contributions first. We can pay in up to £60K while working and the tax benefits are far greater than a few percentage points of interest on savings from net pay. You can even pay in £2,880 into a pension when not working and get £720 (25%) top up from HMRC straight off the bat and you can repeat that every year. With many pension providers you can choose to keep cash or a cash equivalent fund inside your pension, alongside investment funds.

I have been accumulating cash for retirement this year and chose to do this within my pension using salary sacrifice contributions. The cash earns BOE base rate and does not appear to be subject to the pension annual management charge. Yes, it's potentially subject to income tax on the way out but strategic use of tax free lump sum and annual allowance gives some flexibility. I have accumulated far more cash this way than I would have with net pay.

The only cash we keep outside of my pension is our emergency fund which is held in a cash ISA with the same bank as our current account earning 2.53% and I'm not bothered with moving it around to gain a couple of hundred quid extra a year, growth isn't it's purpose.

Out of interest( ), what would your advice be to say ... someone who has already retired and find themselves with a unexpected modest amount of savings from inheritance (or other) after they have retired?

It would depend on your financial/income situation before receiving this inheritance. There is never any one size fits all answer. 
For example do you have low cash savings, or high cash savings already?
Would you like to use the money to boost your annual income, or keep it to pass on one day etc
Do you need a holiday, new car maybe?