Advice with budgeting/saving

[Boredinstagrammer29]

I’ve always been good with money. I saved £20k towards my deposit by 30. Albeit I haven’t travelled much as other people my age so I have made some sacrifices of my own.

I had a separate account for savings and didn’t have a bank card or app for this account so I make it super awkward for me to access it. Ignore it. It’s not to dip into. Consider yourself broke if you have £10 left on the last week of the month.

tot up your outgoings and see what is realistic for you to be able to put aside each month. Like someone said don’t do £300 if you always need an extra £100 by the end of the month, so £200 is realistic.

Itemise food bills When out with friends. People don’t need to know your financial situation so be bold with wanting to just pay for what you’ve ordered.

if you have any debts pay off the highest interest first. Move your credit cards around to 0% too.
I always worked extra jobs for cash in hand. Cat feeding, puppy sitting (yep, I was paid to entertain a puppy), babysitting.

I was using Monzo before lockdown. I put £100 aside for petrol a month (I commute), £100 socialising and £400 food shop a month. Takeaways came from which ever pot I was doing well with budget wise (I discovered Aldi and was spending £30 a week on food so I could afford a weekend take away)

any extras I added into a going away pot for my mums 60th.

I probably have loads more as I’m managing to pay my student loan off at an extra £600 a month now too.

I don’t need Monzo anymore as i managed fo change my mindset around my weekly spending

hope that helps x

 

[Greencatfysh]

I also put a small amount in my NS&I account sometimes! It is the money that I would have spent on a takeaway or Starbucks that month which may not seem alot but if you keep adding to that amount, it can build up!

I think NS&I saver bond is great because you can put £50 in it every once in a while or whatever you can afford and forget about it. Then one rainy day when you really need it, the money is there. Or you may even use it for a holiday deposit and treat yourself for saving!

I agree re NS&I - I save in the account that (and this might be the case for all their accounts) makes you wait 2-3 days for any money you take out to hit your bank account. This makes me think twice before I take money back out of my savings, but also means you can obviously still access it if you really needed it. It’s been so much better than my previous savings account with my bank which I could take money from instantly.

 

[Itsallaboutmememe]

Well done! Saving does take dedication if it doesn’t come naturally to you. I really wish I had been told from a young age how important it is to put money into savings and be intentional with your money! I’d have not wasted as much of it

Alas, every day is a day to learn and make smart money management decisions

Thank you
i was never taught to save-but I was taught to only rely on myself

 

[mammaof3]

I use TSB and I use 'save the pennies' on my current accounts

When you use your debit card the difference is rounded up to the nearest pound and this is directed to a savings account

Not sure if all banks do this

Soon adds up


With Save the Pennies set up on your TSB current account, when you make a payment using your TSB Visa debit card, we round up the amount to the next nearest pound. We then transfer the difference from your current account to the TSB savings account you have chosen.

 

[elelliott]

The You Need A Budget app has completely changed my life. Takes a little while to get used to it - lots of videos and guides on their website to help. Basically you assign every £ to a ‘job’ and that way you stop overspending and really learn what your money needs to do for you before you get paid again.

I used to really struggle and live pay cheque to pay cheque with a couple of pounds in the bank a week before payday and now I usually have £700+ in my account on my next payday (my salary is £21k with rent/bills etc) and I’ve reduced my credit card by £700 in 10 months I promise you it’s a game changer x

 

[Ladyloulou35]

Lockdown has really show me where I am spending or where I was. I work next to Greggs . Coffee on the way in, usually for me and a friend as she was already in work I nearly always bought these, £3, 10am break coffee and bun , I generally copped for this too £4 lunchmeal deal £3 ish , tenner a day, £50 a week =£200 a month Oh and I have nearly lost two stone, so I hope it stays shut I crave a coffee every now and then but don’t miss anything else.

 

[hashbrown123]

I’ve recently changed my entire outlook on money. The results have been great. I used shopping as an outlet for when I was stressed or when something went wrong... I took a few steps hopefully this is helpful-

- started budgeting money for specific things and using separate accounts to keep it separate. One for all my bills to come out of, one for petrol, one for joint bills with my partner, one for savings and finally one for spending. I budgeted harshly as I wanted to start saving! I saved £150 a month. The only accounts I touched after the initial payday was petrol and spending
- once I had a bit saved I started to pay off debt credit card and a £1600 loan but I saved the full amount needed to pay these off in my savings and paid them off all in one go (very satisfying!)
- cancelled any direct debits I wasn’t using or paid upfront for anything I could (I use the app headspace and it was a lot cheaper to pay for a full year than monthly)
- once id cut down as much as possible I then increased my saving limit and cut down my expenditure and budgeted myself harsher again!
- I also don’t take out any unnecessary direct debits I’m going to pay off car insurance and tax annually etc.

it’s been great I feel so satisfied and now aside from car finance (which I’m not going to be paying off in full) and a phone loan I’m still saving to pay off I’m debt free. Massive focus on saving now!!!

 

[Boredinstagrammer29]

I also make these loads I don’t think the original poster needed help with debt but I find it helpful to map out how I’m going to tackle mine and incase anyone else does too (would like to add my credit card was for a car I needed to get to work, not any ridiculous splurges!)

 

[Randy77]

All the advice on here is great. To keep you motivated and to stay on track, read MSE forums.

 

[GiftedNotFree]

All the advice on here is great. To keep you motivated and to stay on track, read MSE forums.

Yeah, I agree — I wish we could keep this thread going! I’m passionate about money management now so it’s fun to discuss

 

[Paradisefalls]

Yeah, I agree — I wish we could keep this thread going! I’m passionate about money management now so it’s fun to discuss

I agree would be great to keep this thread going so we can share tips and motivation! Can even use it for accountability if anyone is veering off track.

Maybe we should share our current financial goals - whether it is saving or paying off debt or something else?

I am currently saving to complete my 6 month emergency fund and a big holiday for next year (all being safe and well).

I also have 1 final debt in my life (excluding my mortgage) which is my student loan - been following me around like a bad smell for far too long now! Was going to pay it off in a final lump sum and then the pandemic hit so decided to just leave it to come out of my wages as usual and keep the money in my emergency fund. If my job survives all this then I should be rid of it by the end of the year! Woohoo!

 

[Boredinstagrammer29]

I agree would be great to keep this thread going so we can share tips and motivation! Can even use it for accountability if anyone is veering off track.

Maybe we should share our current financial goals - whether it is saving or paying off debt or something else?

I am currently saving to complete my 6 month emergency fund and a big holiday for next year (all being safe and well).

I also have 1 final debt in my life (excluding my mortgage) which is my student loan - been following me around like a bad smell for far too long now! Was going to pay it off in a final lump sum and then the pandemic hit so decided to just leave it to come out of my wages as usual and keep the money in my emergency fund. If my job survives all this then I should be rid of it by the end of the year! Woohoo!

How good does it feel to be near the end of your student loan!! I paid off some with £500 chunks but this morning decided to put the rest on an interest free credit card.
I just want to money from my wages and I will decide how much to pay each month!

 

[Immoslips]

This is how I took control in the last couple of years:

registered with credit karma and MSE Credit club (recently achieved my 999/999 scredit score! )

joined plum x added a payday saving of £100 on top of the auto saves it calculates for me
joined moneybox
joined chip x I think I added a £100 payday saving to that app too.

I only have a standing order for £100 as a payday saving to my savings account from my current account

plum usually auto saves me about £600 - £800 every couple of months
chip usually auto saves me between £600-£700 every couple of months.
moneybox just builds up my little ISA and I don’t notice the money leaving my current account from any of the above.

everytime my plum and chip apps reach £500 I withdraw the money to my current account and the send it to my saving account which pays a decent interest rate.

Once that reaches £10k I skim off a couple of grand and send it to my big savings account!

I love saving and having money in little pots, but appreciate this doesn’t work for everyone, good luck and I can send you links for plum / chip / moneybox, just inbox me if you fancy giving them a go!

 

[JoeBloggs]

For me treat money works, money I can spend as I wish. It takes the pressure off from watching very penny. Any spare cash went on debt and savings.

We’ve just paid off a £18,000 loan from my parents (house renovations and a car). We are now saving for an extension which we have budgeted £60k for, we have about half of it but that’s all we have to our name so we need a buffer before we can commit.

 

[Anonymous_Troll]

Loving this thread! I am horrendous with money and made some horrific choices in my 20s but I’m finally getting a handle on them and chipping away at my debts.

If anybody else needs a visual to help motivate them, just google ‘debtfreecharts’ and there are lots of free ones to choose from and they really do help!

I have a mountain of debt but genuinely enjoy colouring in another square of the tracker when a payment is made! Sad but true!

 

[Immoslips]

Here’s the links to my favourite savings apps mentioned in my earlier post:

plum https://friends.withplum.com/r/q9VzLb

Chip use this promo code and you get a free £10: JAS3JY
NOTE: I don’t think I get anything for the chip promo code

moneybox

Turn your money into something greater | Moneybox

Moneybox is the simple way to save, invest, buy your first home, and combine your old pensions - all with one award-winning app. Download now.

go.onelink.me

 

[GiftedNotFree]

Can I ask about moneybox - why do you use it and how much do you put away each month?
I saw that Debt Camel (Money blogger) had written about it in an article about getting prepared to apply for a mortgage and I’m still unsure whether it’s worth getting an account.

My current financial goals:

- Have 30k saved by next June for house down payment
- Have £3000 emergency fund

I do have some others but these are the biggies. Just now I’m about 40% there with both.

 

[Immoslips]

Can I ask about moneybox - why do you use it and how much do you put away each month?
I saw that Debt Camel (Money blogger) had written about it in an article about getting prepared to apply for a mortgage and I’m still unsure whether it’s worth getting an account.

i think to begin with I got it as just another pot to auto save into as I’d already got a mortgage by the time I got it. We already have a house and are looking to buy what will be our third home as soon as possible, so I just have it an a little ISA. Moneybox is the only savings app I don’t skim money off back into my savings accounts for because it has quite good returns, whereas the other two you don’t earn interest on. That being said I don’t put a payday saving into it, I just let it take small amounts each month and watch it grow

EDIT - I just checked and it auto saves me around £45 every week, and I do have a £100 payday boost on it!

 

[Paradisefalls]

How good does it feel to be near the end of your student loan!! I paid off some with £500 chunks but this morning decided to put the rest on an interest free credit card.
I just want to money from my wages and I will decide how much to pay each month!

Honestly can’t wait for the day they are out of my life for good!

If I had known when I took them out how long I would be paying them back I would definitely have thought twice about it! Really think there should be more done in schools to educate young people.

Come the end of the year though I will definitely be celebrating when they are gone!

 

[Lilooooo]

I’ve just spoken to the bank, my overdrafts have been getting out of hand with extra charges being added every 30 days with no way of keeping on top of them, but I’ve made a repayment plan with them and had any charges frozen.

I didnt want to admit that I was in over my head with debt, but its like a weight’s been lifted finally. Thanks for all the tips on this thread, i need to get myself and my finances sorted