Saving stategy/psychology

gascar

Personal view: It depends how much you have in savings.

If you have about 20k or more, then you will benefit if you educate yourself a bit - the nuts and bolts - and use a Stocks and Shares account.

You need to be comfortable with numbers,  which many aren't.

There are funds you can buy on a S&S platform, which behave like the building society account, growth wise. Five and a bit percent, for the last 3 years or so.

If you're prepared to learn just a bit more and keep an eye on things, monthly or so,  (phone app is fine) You can do a lot better. So instead of getting £1k on yor 20k you'd get 3k or 4k, in a year.

Things like the overall stock market index waves around so don't use those. 

As an example there's a managed bond fund which has grown nearly 80% over the last 3 years, without any nasty dips. It's called MAN Dynamic Income Class I Hedged (IH). You'd need an account at a suitable "platform". Some don't have it. Your Bank S&S is less likely to have it.  AJ Bell, Interactive Investor, Hargreaves Lansdown, all do. ( Some folk might want the Investment Grade version, with performance close behind)

.

For 20k, go to AJ Bell, which at times will give you a hello of £200. You pay 0.25% per annum in fees,= £50.

The fund is aiming for 20%pa at the moment.

So instead of getting about £1k on your 20k you'd get £4000. Something very odd would have to happen for it to be less than £1k at the moment and remember you can always sell, if there were turmoil of some sort. It hardly dipped when Trump did his thing.

More here: https://forums.moneysavingexpert.com/discussion/comment/81563350/#Comment_81563350 It's the orange line.

masonic

Probably best also to read the trailing discussion.

cockerWalker

We use short, mid, and long term savings, with agreement on rough priorities.

Short term is instant access, mid term is fixed term limited withdrawal, long term is s&s isa, hopefully not to be used until retirement.

Currently we've enough in the short and mid term savings, so savings are all routed to isa and pension.

In terms of funding specific purchases, we agree every year on priority spends. Currently we're expecting to need to replace a car at any time (so have the budget for that in the short term account) and want to get kitchen redone (mid term). 

Kim_13

I also only have pots in as far as I have multiple Regular Savers on the go. NatWest Digital Regular Saver and Melton Issue 5 will be my Emergency Fund when they are full, given that they come with an indefinite term. With the limited monthly pay in, it will help ensure that they are used only for the intended purpose as it discourages withdrawals unless you absolutely have to. Currently my Emergency Fund would be the contents of a non-flexible EA ISA, so again, don't really want to be pulling that out.

I still have the Stafford Regular Saver, opened in 2022 when it was the best rate available. As they impose postcode restrictions from time to time, I'm reluctant to close it and keep it running with £25 per month, earmarked for bigger purchases that are wants rather than needs. I intend to use this to buy an iPad Mini when it is updated with OLED in 2026/2027. 

I've had a few larger expenses over the past few years so the rest of the Regular Savers aren't really earmarked for anything except funding Regular Savers in a particular future month. My Christmas Regular Saver certainly isn't for Christmas as I refuse to spend £1,500+ interest on it.

Dobbibill

I prefer several pots along side a spreadsheet too.

This means every month I budget from income to zero as every penny is given a job. It also helps me track whether each topic/pot needs more or less each month. 
I do everything from retirement, car down to dentist, opticians and hairdresser. 

I always wanted to be in a position where nothing that happens in life would come as a surprise financially - emotionally somethings you can never prepare for like bereavement but knowing you haven't got to worry or stress about it financially is really reassuring.