Have you tried a budgeting app like Youneedabudget? They show you clearly where your money is going and create rules for you to follow (not suggesting you need them) with the aim of getting firstly to having one month buffer (i.e. not buying day to day things on credit before you have the cash), then moving up to an emergency fund, and so on.
42.3% of Londoners have less than £100 in savings
- Thread starter Gustov
- Start date
Have you tried a budgeting app like Youneedabudget? They show you clearly where your money is going and create rules for you to follow (not suggesting you need them) with the aim of getting firstly to having one month buffer (i.e. not buying day to day things on credit before you have the cash), then moving up to an emergency fund, and so on.
Soldato
- Joined
- 4 Aug 2007
- Posts
- 22,419
- Location
- Wilds of suffolk
The difference is what if something happens in month 5, say the washing machine breaks.
Scenario 1 he has the money to replace the washing machine and delay the PC. Bit annoying but that's life.
Scenario 2 he has to go further into debt. What if he cant borrow any more money easily now, payday loan?
Add another nasty event a month later such as being made redundant and now hes in debt and income screwed. This is what savings are for, to cover any reasonable short term event.
Savings - cover short term issues such as breakdowns, gap in employment, baby etc etc. Not designed to make money long term but to provide liquidity, in order to avoid needing to take expensive credit.
Investment - to make money long term.
The only time it really makes sense to borrow money is if the thing you want to buy will actually lever the borrowing upwards hence making you money.
Such as normally property.
Ive got a load of money borrowed on 0% and also some I borrowed from barclaycard for a 0.9% fee, 0% interest. Both amounts are invested earning over 4%
Soldato
- Joined
- 11 Apr 2006
- Posts
- 7,222
- Location
- Earth
I just use app called Money Lover and added all the categories I spend money on. Then it gives a monthly report and it opened my eyes to where I was blowing all my money. *this was before my baby, now money just disappears now*
You probably won't be saying that in 10-20 years time.
I save around half of my salary each and every month now. I still dip into it if I want to buy something big, I live life, but that money gets separated from my main account and is getting bigger month by month. It's a big psychological boost knowing you have a financial cushion to rely on in tough times or simply when you want to splurge on something.
Last edited:
Doesn't surprise me at all. I love London, but one of the main reasons I moved away is that as a graduate, even if you get a job with a good starting salary, by the time you've paid your mortgage / rent and travel expenses you seem to have nothing left. Sure, if you lived with your parents for several years that would certainly help build up savings, but who wants to do that?
I currently live abroad, earn around £30k per year, pay 12% tax on 50% of that, and can normally save £500-700 per month. Not a vast amount by any means, but a lot better than I'd have been able to manage back home I reckon.
I currently live abroad, earn around £30k per year, pay 12% tax on 50% of that, and can normally save £500-700 per month. Not a vast amount by any means, but a lot better than I'd have been able to manage back home I reckon.
Associate
- Joined
- 1 Jul 2009
- Posts
- 728
- Location
- Shropshire/Paris
If I got made redundant I wouldn't be crying. I'd be dancing and on the next plane to Hawaii. I'm a saver.
Indeed #yolo
Depends what point you are at in life.
I've been saving for a while so I can put a hefty deposit down on a house, all money I don't ever touch. Most of my friends have no money to their name and don't understand how I do it...
Its because I don't go out clubbing three nights a week and I don't buy the latest tech whenever it is released, like so many people my age... I'd be pretty annoyed with myself if I'd reached 21 with barely a penny to my name, but it seems to be a way of life for them!
Last edited:
I know someone with over 75k in the bank. She saves nearly everything she earns. Only buys the cheapest things. Doesn't treat herself. Doesn't go away. Doesn't go out. She has a kindle and reads books, that's her thing.
I asked her why she saves so much and she said "well I need savings"
When you ask her what for she just says "well because everyone needs savings"
I remember when her kindle died and she freaked out that she would be putting £100 less in savings due to having to replace said kindle...the amount of pressure she puts on herself is incredible.
Thats a bit too far imo...I do think she will be someone who takes it to the grave and doesn't really enjoy much of anything in life. She has been completely and utterly brainwashed.
I asked her why she saves so much and she said "well I need savings"
When you ask her what for she just says "well because everyone needs savings"
I remember when her kindle died and she freaked out that she would be putting £100 less in savings due to having to replace said kindle...the amount of pressure she puts on herself is incredible.
Thats a bit too far imo...I do think she will be someone who takes it to the grave and doesn't really enjoy much of anything in life. She has been completely and utterly brainwashed.
Last edited:
True but I don't want to start boasting about how much I've got in the bank
Haha fair point.
I have somewhere between £1 and £1,000,000
Women.
Well yes and no. Her particular case is the exception. In her head she HAS to save ALL the time. Her life is about saving money....but not to do anything with it. That is not a life imo.
My GF is exceptionally good at money management. Because of that we regularly go out to dinner, socialise, take trips, we've been able to kit out the new apartment as well etc. And we still have a 5 figure financial buffer to fall back on.
Savings are important but so is living life. There needs to be balance.
All work and no play makes ocuker's dull boys!
Having been in a dodgy situation a long time ago, I now probably save too much. When I keel over the kids can have it, I don't care.
I've seen a lot of consumer rubbish come and go, it's difficult to get excited over things to buy.
Also mortgage is easily covered separate to savings.
I've seen a lot of consumer rubbish come and go, it's difficult to get excited over things to buy.
Also mortgage is easily covered separate to savings.
I class myself as a 'super saver'. Won't comment on my savings but it's quite a lot. In fact, the lady with the 75k and Kindle and myself should talk
Anyway, I'm doing it to pay off another mortgage and then I'll consider semi-retirement. if I didn't have a goal in mind I wouldn't do it.
While I still treat myself, each and every purchase is super super super carefully reasoned and calculated. My biggest treat this year has been my PC (sig) which I bought with tax back and some interest I've earned.
When my salary hits my account, I straightaway start moving money around. I know my fixed costs to within 10 bucks. That goes to the 'House' account. Next I'll move the bulk of it to a savings account and the rest is mine. While I don't leave myself a lot to spend in the eyes of some of you wastersp) on here, I don't even spend that and as the months go by, even that builds up. In fact, I recently moved about 7k out of my 'Wastage' account to my Savings account. I just don't need or want anything expensive or new.
Listening to people at work, it's beyond me how they always managed to sniff out or dig up new and expensive crap to waste all their money on.
Each to his own though. Having lots of savings relatively young in life makes me happy and sets me up well for a (already) stress free future. As long as you're happy and doing what's right for you.
Anyway, I'm doing it to pay off another mortgage and then I'll consider semi-retirement. if I didn't have a goal in mind I wouldn't do it.
While I still treat myself, each and every purchase is super super super carefully reasoned and calculated. My biggest treat this year has been my PC (sig) which I bought with tax back and some interest I've earned.
When my salary hits my account, I straightaway start moving money around. I know my fixed costs to within 10 bucks. That goes to the 'House' account. Next I'll move the bulk of it to a savings account and the rest is mine. While I don't leave myself a lot to spend in the eyes of some of you wasters
p) on here, I don't even spend that and as the months go by, even that builds up. In fact, I recently moved about 7k out of my 'Wastage' account to my Savings account. I just don't need or want anything expensive or new. Listening to people at work, it's beyond me how they always managed to sniff out or dig up new and expensive crap to waste all their money on.
Each to his own though. Having lots of savings relatively young in life makes me happy and sets me up well for a (already) stress free future. As long as you're happy and doing what's right for you.