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  • FIRST POST
    • lgb1974
    • By lgb1974 31st Jan 18, 1:17 PM
    • 3Posts
    • 1Thanks
    lgb1974
    Saving - on a lower income
    • #1
    • 31st Jan 18, 1:17 PM
    Saving - on a lower income 31st Jan 18 at 1:17 PM
    Hello all,

    After recently becoming debt free i'm now looking to put some money aside and into savings. I'm self employed and currently only earning around 1000 per month income (after tax). Luckily my outgoings are more than reasonable and through having to budget to pay off debts for the past few years i'm more than capable of living within my means. My initial aim is to save around 300 per month as an emergency fund. Starting from zero, building up a decent amount seems rather daunting, so i guess i'm looking for inspiration from anyone who is, or has been in a similar position of trying to save on a low income.

    Thanks in advance.
Page 2
    • Ak92
    • By Ak92 3rd Feb 18, 12:10 PM
    • 26 Posts
    • 3 Thanks
    Ak92
    I would use LISA for a house. I work within the civil service so I have a pension with them which I have heard is pretty good. Is there a reason why I shouldn't use both if I have the funds to do So, or is it just worthwhile to save in the young savers account for long term?

    Thanks Kim, that clears things up I will have a quick read through the t&c and see if there is anything in there that doesn't sound worthwhile for me.
    • aj23
    • By aj23 3rd Feb 18, 12:46 PM
    • 494 Posts
    • 174 Thanks
    aj23
    I would use LISA for a house. I work within the civil service so I have a pension with them which I have heard is pretty good. Is there a reason why I shouldn't use both if I have the funds to do So, or is it just worthwhile to save in the young savers account for long term?

    Thanks Kim, that clears things up I will have a quick read through the t&c and see if there is anything in there that doesn't sound worthwhile for me.
    Originally posted by Ak92
    I think if you put 300 a month for the next 11 months (which is higher than the cap for Leeds) then it will convert into the Home saver account. You will earn more interest that why. Maybe open a Leeds one in a years time?

    To get 2.25% for 11 months, then 2% thereafter, and still be able to deposit is a good account.
    • Kim_13
    • By Kim_13 3rd Feb 18, 3:53 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    I would use LISA for a house. I work within the civil service so I have a pension with them which I have heard is pretty good. Is there a reason why I shouldn't use both if I have the funds to do So, or is it just worthwhile to save in the young savers account for long term?

    Thanks Kim, that clears things up I will have a quick read through the t&c and see if there is anything in there that doesn't sound worthwhile for me.
    Originally posted by Ak92
    No, nothing wrong with using the LISA and a pension to save for later life, in fact this is what the government's intention was, hence the withdrawal charge if using the money for anything other than a first home or retirement. Only put money in that you can afford to lock away.

    The original poster's circumstances are slightly different to yours, hence not advising the LISA as they may not be able to afford to only to touch the money in the permitted circumstances.

    The LISA is a clear winner for saving for a home unless there is a chance that a property or part of a property will be inherited before the time comes to buy, as this would mean that the account holder is not classed as a first time buyer for LISA purposes and cannot then get the money out before age 60 without paying a penalty.
    Sealed Pot 11 #520 ~ /100
    VSP 2018 #9 ~ 19.55/180.00
    CCCC 2018 #1 ~ 20.75/180.00
    • Ak92
    • By Ak92 11th Feb 18, 5:21 PM
    • 26 Posts
    • 3 Thanks
    Ak92
    Thanks everyone. Well I tried to open a FD account so I could make use of 5% savers account, however I was rejected and not sure Why? Very disappointed, can I try again? Or do I just have to try another provider? I have applied for nationwide flex direct also, hopefully that comes back with better news.
    • Superscrooge
    • By Superscrooge 11th Feb 18, 7:10 PM
    • 1,081 Posts
    • 775 Thanks
    Superscrooge
    HSBC, M&S Bank and Santander also have 5% regular savers if you open a current account.

    I seem to remember reading on another post you have to wait 6 months before making a fresh application with First Direct.
    • Kim_13
    • By Kim_13 11th Feb 18, 8:34 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    First Direct are known for being picky as to who they accept unfortunately. HSBC and M&S are also part of the same group so I would give it some time before applying to those. M&S requires a switch too, so it's arguably the hardest of the Regular Savers to qualify for.

    Santander's 5% applies if you are a 123 or Select customer, it pays 3% otherwise. It only takes 200 per month also, rather than the most common 250 or First Direct's 300.
    Sealed Pot 11 #520 ~ /100
    VSP 2018 #9 ~ 19.55/180.00
    CCCC 2018 #1 ~ 20.75/180.00
    • longleggedhair
    • By longleggedhair 12th Feb 18, 11:40 AM
    • 308 Posts
    • 383 Thanks
    longleggedhair
    It certainly is possible, I started off with nothing and built up to 200,000 now, and have been on a lowish wage for most of that time. I have had the good years of stock market growth and was lucky enough to inherit a house which kept my outgoings down, so most people wouldn't have been as lucky as me, however if you really watch the pennies it soon mounts up.
    • Ak92
    • By Ak92 12th Feb 18, 9:59 PM
    • 26 Posts
    • 3 Thanks
    Ak92
    So I managed to open a flex direct account with nationwide which is the good news. Bad news is that I don't necessarily have 2.5k to put in the account as a lump sum. Instead will be drip feeding the account.

    How long do I need to wait until I can apply for the regular savers at 5%?

    Thanks
    • Kim_13
    • By Kim_13 12th Feb 18, 10:13 PM
    • 1,901 Posts
    • 2,035 Thanks
    Kim_13
    So I managed to open a flex direct account with nationwide which is the good news. Bad news is that I don't necessarily have 2.5k to put in the account as a lump sum. Instead will be drip feeding the account.

    How long do I need to wait until I can apply for the regular savers at 5%?

    Thanks
    Originally posted by Ak92
    Day one with a FlexDirect, as it doesn't require any other criteria. The requirement is simply to hold a FlexDirect.

    It is those with a FlexAccount that need to either switch into the account or pay in 750 in three calendar months before they can open a Flexclusive Regular Saver.

    I would leave the Regular Saver until you have filled the FlexDirect, otherwise you are just going to be waiting longer to receive your interest as both pay 5% currently. The FlexDirect pays the interest monthly and the Regular Saver on the anniversary of the account opening.
    Sealed Pot 11 #520 ~ /100
    VSP 2018 #9 ~ 19.55/180.00
    CCCC 2018 #1 ~ 20.75/180.00
    • Ak92
    • By Ak92 13th Feb 18, 12:32 PM
    • 26 Posts
    • 3 Thanks
    Ak92
    Thanks for the info Kim, I will follow your advice and fill the account first. As I have previously posted on this thread, I have opened holmesdale young saver account at 2.25%. Do you think I should put the money I would have into the flex direct Instead? They are both easy access accounts. I am just after a little advice as I am still after best way to maximise my money. Thankyou
    • badger09
    • By badger09 13th Feb 18, 1:08 PM
    • 5,995 Posts
    • 5,335 Thanks
    badger09
    Thanks for the info Kim, I will follow your advice and fill the account first. As I have previously posted on this thread, I have opened holmesdale young saver account at 2.25%. Do you think I should put the money I would have into the flex direct Instead? They are both easy access accounts. I am just after a little advice as I am still after best way to maximise my money. Thankyou
    Originally posted by Ak92
    I don't know anything about the Holmesdale Young Saver, but I do know that 5% is more than double 2.25%
    • Ak92
    • By Ak92 13th Feb 18, 7:28 PM
    • 26 Posts
    • 3 Thanks
    Ak92
    Ahhh ok fair enough, I shall start putting 600 pm in the flex direct until it's maxd out then In the savers until that's maxed and then holmesdale.

    Thanks to everyone who has helped me with my situation. I think I have found the right way to start saving.
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