Future Finances: Time vs Money

humptydumptybits · 10 August 2018 at 11:36AM

thriftytracey wrote: »

I switched bank account yesterday to the Nationwide FlexDirect. It was the most trouble free on-line switch yet (although I do have an existing Flexaccount with them). I tried a Lloyds Bank switch last month as their offer was coming to an end and gave up in the end because I could not get an bank appointment in time at any bank within a 30 mile radius before the offer ended It was ridiculous. I know it is only for a year, hopefully there will be another offering by another bank although they do seem to be drying up and I have switched 4 times now so running out of banks!

I am also looking for an account where I can squirrel away holiday savings that pays a decent rate and is easy to transfer money to. I've got a small regular savings account with Birmingham Midshires but it is not very flexible. We have ISA's however that is for the unexpected or large capital purchases. We also have a Santandar bank account for DD's and Standing Orders and 2nd level savings, then we have a Nationwide Bank account for savings towards regular expenditure such as vehicle/caravan services and maintenance together with house maintenance. I just want an old-fashioned account where I can pay bits of cash/cheques in, easily transfer small sums electronically and pays a half way "decent" interest. I must admit I am nostalgic for the old books that were printed up every time money was deposited. I remember saving in the Abbey National for our first house deposit that way. It was most satisfying! Actually typing this I just thought about the Post Office. Must do some research.

Anyone else do this?

I'm looking for something as I'm saving for DDs wedding next year. I'm not getting very far but I will certainly post if I find something good.

lessonlearned · 10 August 2018 at 11:51AM

Interesting post thrifty..........

I need to have a money sort out after I have moved.

TBH I am getting heartily sick of having to keep monitoring interest rates and switching banks just to try and get a decent savings rate. I think savers have been punished long enough. :rotfl: half the time we are not even keeping pace with inflation.

I do the "recycling trick", ie using linked accounts that allow you to filter money into a regular savings account paying around 5%. Again these are only for 12 months but better than nothing. I have now had three consecutive HSBC ones. As one finishes I just start Another. I'm also going to do a Santander one.

I have dabbled in Stocks and Shares ISAs this year. Well my son did it all ....bless him. So far I have earned just over 10 per cent return in 10 months, which of course beats the banks hands down. I know over on the investment board they would probably laugh at that saying it's small potatoes but I am happy. I would be too nervous about going high risk. It's very tricky.......trying to get decent returns but not opening up to high risk.

I have no idea what effect Brexit will have on the stock market and anyway I do need to have some instant access funds for house renovations so I have just cashed in some of my S&S holdings and will transfer them to Santander for the time being, reducing my exposure to the whims of the stock market. At least for now.

I know the stock market is probably best for long term savings and investments but as I am now 67 I don't feel comfortable taking too many chances. Different if like my son you are in your 30s but my age it isn't so easy to ride out the lows.

If any one has any better ideas, please share.

thriftytracey · 10 August 2018 at 12:32PM

Indeed LessonLearned, savers have been punished for 10 years. This isn't going to change with banks passing on just a fraction of any interest rate rise for savers rates. At one time banks needed the money from savers - now they don't. This deters saving generally - look how easy it is to obtain credit now and how personal debt is increasing. It is frightening. However, to our generation debt was very risky and to be avoided. I remember purchasing appliances on six months' interest free credit in the 1980's and being worried about that! We bought second hand/hand me downs furniture and rented a colour TV - can you imagine it now? I could go on and on ....

Yes, the FTSE is at a all time high. Making me very nervous about my pension funds. From what I have read while the £ falls the stock market rises and vice versa. I am hoping that a No Deal Brexit will NOT happen or be allowed to happen, although it seems to be on the agenda of certain groups, individuals and investors.

sukysue · 10 August 2018 at 8:55PM

Bought some Extra special toasted teacakes for 2p yesterday and we came home from the elderly parents and had 2 each with a giant mug of tea and it was bliss!

humptydumptybits · 10 August 2018 at 10:26PM

The interest rates are so low it is hardly worth bothering so I'm thinking of just buying premium bonds every month and at least I have a chance of a nice surprise. DDs wedding is 11 months away, they just got engaged, so too late for me to tie into one of the 12 month saving accounts that pay a decent amount.

crv1963 · 11 August 2018 at 9:10AM

Hi

S&R- Hope you have a fruitful weekend, I'm going to tackle the garden, then see how the weather pans out, aiming to think through how I'll put my own thought onto my thread in some sort of order rather than a chaotic mix of them.

Thrifty- I had thought that I might start looking to switch accounts and chase the percentage game but it does seem a lot of effort for little return. I think once I have an idea of my regular income I may start a regular saver account.

LL- I suppose that it depends how fast you need the money tied into S&S? I'll be trying to keep some invested after we retire but not all, maybe because cash loses money against inflation and most down turns recover in 18 months to 3 years.

Sukysue- I always look at what's reduced and get bargains, I have to stop though as some of it gets wasted.

Humptydumptybits- Premium Bonds sounds a great idea, when I've sorted my cc's out I think a bit each month into PBs may be the way to go for me, they are accessible but I'd have to think about cashing them in, rather than just going to the cashpoint and drawing money out.

I can see my problem is that I waste money buying wants rather than needs and tying up money that I can access in a few days is probably better for me. Great to read what others do and how I can adapt their ideas to my circumstances.

lessonlearned · 11 August 2018 at 9:45AM

I am a great fan of premium bonds, risk free and some nice little bonus cheques from time to time. I have never had a big win but usually manage either £25 or £50 a month. Not to be sneezed at.

CRV. There is nothing wrong with spending on "wants" as long as you budget for them......I didn't "need" a trip to the Amazon. I don't NEED a visit to Iceland next year either......:rotfl: but I do want these things so I budget for them.

My advice is to really monitor what you are spending, record everything, either in a spreadsheet or even what I do, I just write daily spends in my diary so I can keep track of where the money goes.

Tracking your expenditure might sound a bit anal but nothing beats it for helping you find out where the leaks are. Plug the leaks and your financial position will improve very quickly.

I know you are still in debt busting mode but you seem to have things under control.

One thing I find useful if I really want to cut back is I just decide to have a moratorium on all unnecessary spends. It can be just month, or even longer just depends.

As you know I am moving soon so have been packing up my possessions. What an eye opener. Seriously I could open a dress shop.......:rotfl: I have decided I will not be buying clothes, shoes, bags etc for at least the next six months.

I don't need any more cute dresses ......:rotfl:

In fact when I move I shall be decluttering yet again.....It's an easy way to make a bit of extra money although it can be a bit time consuming.

Last time I blitzed my loft I made £1100. So well worth the effort.

Today I too shall be pottering about the garden, and also do a bit more sorting and prepacking.

Ps....sorry didn't answer re the S&S. I am happy to keep the lump sum invested there for at least 5 years. My new mortgage is fixed for 5 years so that's my time frame. At that point I shall either move again or pay off the mortgage and stay out, or stay put and keep the mortgage......

I really have not decided yet....it will all depend on the economy at that time and whatever else is happening in my life. Lots of options. That's the beauty of being retired........freedom of choice. .....

thriftytracey · 11 August 2018 at 9:47AM

Re Premium Bonds. We have had £500 for years and only ever won £25 about 10 years ago. Some friends have the full £30000 allowance and win regularly. There is an article about PB on MSE the odds are tiny now unless you have the full amount. I keep meaning to cash them in. BUT like the lottery I guess there is always a chance albeit teeny tiny!

thriftytracey · 11 August 2018 at 9:53AM

"My advice is to really monitor what you are spending, record everything, either in a spreadsheet or even what I do, I just write daily spends in my diary so I can keep track of where the money goes. "

I LOVE my spreadsheet! I record everything and categorise spends, Food, Fuel, Pets, Personal (toiletries, books, cds etc), Entertainment (meals out etc), Discretionary (impulse), Caravan, Holidays and Home. I then reconcile to the bank account and it is really satisfying to see surplus saved each month from my salary, even if it just £100. Also, planning for retirement you can see where the "heavy" months are e.g. Pet vaccinations etc. I know I spend too much on food for example and can cut back.

Then, when I was doing the numbers I could see where too much money was going!

thriftytracey · 11 August 2018 at 9:54AM

S&R - where are you? Hope you are well. Missing your blog!

Future Finances: Time vs Money

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