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Last ooorders!… We’re sorry but for now, due to resources, we need to close the Money Savers Arms including Discussion Time.

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How much should I save?

edited 30 November -1 at 1:00AM in Funny Money
19 replies 2.8K views
Leia_StephensLeia_Stephens Forumite
231 posts
edited 30 November -1 at 1:00AM in Funny Money
I have a (small) emergency fund of 3k and I am drip-feeding it each month :)

What I am wondering is, what is a good amount of money to be saving each month ???

For example, 5% or 10% of take-home pay ???

Leia
I want to be a good saver, but I find it difficult to control my temptation to spend :o .

I owe £1,247 more than I have in savings :( .
.
«1

Replies

  • DiggingOutDiggingOut Forumite
    770 posts
    Well, how about 50%? Then you could really build it up. ;)

    There is no real answer to this question. The right amount is the amount that you can afford to save within your priorities.

    If you are saving up for something very important to you, you might want to cut back on some things you would normally buy so as to save more quickly. If you are saving because your "rainy day" fund is too low, you might do the same.

    If you are saving just because it is a good idea without any real need, the savings might not be as important as some things you would want to spend money on now, so you might save less.

    It really is simply a matter of what is important to you. If the savings are important, set a higher percentage.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
  • Joe_BloggsJoe_Bloggs Forumite
    4.5K posts
    @Leia
    It is also important to get the best return  for your savings. Where do you have them and what rate of  interest do you get. To me they would fit into a cash ISA
    very nicely.
    Regards JB.

    Sorry Leia I caught your full circumstances in the
    Anything Else section under the title Spend Savings or get a loan.
    I know you have an ISA and £1500 credit card debt
    Quote your interest rate you are paying on your debts and to whom as well.
  • Sorry, JB, I am posting a lot at the moment, and often forget where I have added to threads :-[

    I have just checked my credit card debts and my Mastercard currently has a NIL balance ;D Just after Christmas it was just over 3k :o

    I have done a BT back to my Barclaycard for the 6.9% life of balance deal, unfortunately I missed the 2.9% deal by a couple of days :(

    Fortunately, I only have 1 credit card debt, which I want to get as low as possible before Christmas ;)

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • I wish I could save 50%, DO :D

    I have just over the equivalent of 3 month's take-home pay in my ISA, but its interest rate is pretty good and I
    obviously like its tax-free status ;D

    When I get on top of my credit card debt, which hopefully won't be too long, I am hoping to save at
    least 10% of my gross pay in ISA monthly :)

    Thanks for your suggestions, DO.

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • Joe_BloggsJoe_Bloggs Forumite
    4.5K posts
    @Leia that 6.9% is not a bad rate compared to the high teens% that you could have been paying . As you have only one active card and a modest debt, it might be worth while applying for 0% products. Off the top of my head I suggest Mint, MBNA, Sainsburys, Nationwide, there are many others. You can BT to this new card and try negotiating again with Barclays. You will save your calculated charges at least.

    Regards JB
  • Thanks again, J B. ;D

    In December I got a 0% deal for 6 months with RBS Advanta (now MINT) and I managed to avoid paying any interest :) because I transferred back to my Barclaycard at the beginning of June.

    I tried to BT to another 0% deal, but gave up after
    7 refusals. My partner advised me to stop applying then :)

    I checked my credit report with Experian and found no problems, in fact I have never made a late payment, missed a payment, or gone over my credit limit :)

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • lisyloolisyloo Forumite
    26.6K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    It could be the number of searches you've had close together.
    These are visible to other lenders and if you have had 7 in a short space of time, then it implies that you've been turned down and are desperate.

    Wait until some of them dissapear (searches stay on there for 12 months).
  • DiggingOutDiggingOut Forumite
    770 posts
    I would be inclined to keep your savings at their current level and get the debt cleared. 6.9% is not a bad rate, but still higher than you can earn on savings.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
  • Woby_TideWoby_Tide Forumite
    5.3K posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    I agree with digging out, saving any money whilst having a card debt at 6.9% is losing money (assuming best interest rates on accounts are still 6% max as they were recently). Clear the debt asap then start the saving, for time being you can use card as rainy day fund for time being
  • Thank you, DO and WT ;D

    Yes, it does seem sensible to "kill off" my debt as soon as I can, I don't want to dibble into my ISA but I am thinking of not adding to my other savings until I am
    in credit with my Barclaycard ;D

    Hopefully £200 to £250 a month will "kill it off" before
    March :)

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
This discussion has been closed.

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