When do you save?

Firstly, apologies…..I’m unable to leave comments on some of your lovely blogs and I am enjoying them, thanks to everyone who writes as you give me so much pleasure. Today’s blog is all about the saving accounts we frugals seem to have.

 Every month, a week before payday; we go through the family finances. We dig out every receipt and we record everything we spend. We even create our own receipts for car boot sale and charity shop purchases. We then start to move money from one account to another. What ever is left (and there’s not much some months and some months there is much more) gets divided into more over paying the already over paid debt repayments, some into the long term savings account and some into the rainy day saving accounts. I try to make sure that more and more of my salary is left at the end of every month, by stretching everything that little bit further every month.

It may seem crazy saving money when you owe money, but what if your car goes wrong? What if you need to pay to get to see a sick relative at a moments notice, but what if you don’t have access to any credit? That’s when we turn to savings.

It’s an even better feeling at the end of each month when the savings didn’t have to be used. We’ve only token amounts in the #2 and #3 accounts. We are going to have to ensure our house is sellable in a very competitive market and have it ready to go ‘on show’ for spring next year with hope to sell by the autumn. We are going to have to be extremely creative about doing that and we’ll need access to real cash to do that. So, my new challenge, is to keep the debt repayments going and seriously save for the house renovations!!!

No pressure then!!!

What do you have to save for and what do you have to go without to get it? We’ll have to forget central heating this year, forget baths and forget any new clothes or shoes, we’ll have to forget Christmas again (we don’t ‘do’ it anyway) and forget any un-necessary car journeys. In fact, we’ll have to find another £100 a month from somewhere to do it!

I’m off to grit my teeth.

Until tomorrow,

Froogs xxx

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15 thoughts on “When do you save?

  1. I think it's always wise to have something “in reserve” as you sy, even if there are debts to pay.

    I regard myself as very fortunate, I don't have any debt any more, have managed to save up and can live on my limited pension. However, the thing about having savings is that once you've used them, if you're on a pension, there's no way of replacing that money easily. I've reckoned I'll be able to manage, including holidays for about 15 years, 20, if I can learn to be a bit more frugal and can save a bit more.

    Of course, I might pop my clogs before the money runs out, that way, my kids might actually get something!! If not, they get nowt!!

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  2. Our house needs renovating from top to bottom. Yes, it will be done on a budget;the house needs to be safe, warm, and comfortable. The house does not to be chic enough to feature in a magazine!
    We just spent some money on a soil testing kit and a book on how to amend soil, but we grew enough garlic to have our own cloves for planting the next crop which more than covered the cost of the kit and book.
    Jane x

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  3. For the first time since I dont know when, we actually have some money in our saving account. Granted it is predominantly for the school holidays and our week away at my mum's, but it feels good to have that money put aside. I really want to try to ensure that we put some aside each month, it gave me a bit of a buzz knowing that this money is in the account. I also need to save up for some new bits of T – school clothing etc and a new tyre for my bike – a freebie x

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  4. I am really only starting my journey on paying debt off, but I am trying to leave a few £s in the bank. Reading your blog has given me some great ideas.

    Thank you

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  5. The night before HIS pay cheque goes in the bank, I check our balance online. £25 is left in main account, and remainder is split between two other savings accounts. 'a' is the Mortgage overpayment fund, and every april, that's what it does – and 'b' is the 'top-up' fund,for the months [like august] when I do not earn any money [I do supply teaching]This works well for us – we have already reduced the end date by 8 months – and we have not starved!

    blessings x

    [love todays clip art- can I borrow them??]

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  6. We have some instant savings which get used frequently and topped back up. We also have a few K in ISAs and some (very low value now!) bank shares. I also have £600 in premium bonds (money left to me 12 years ago) – I've won about £250 from them, so a good return. Would be happy to cash them in, but I'd prefer it to be for something tangible, rather than a bill – maybe a nice piece of furniture or something

    We have no debts other than our mtge (which we are overpaying each month with a view to paying it off 07/2016 – original end date 11/2025) We use credit cards but pay them off in full each month (Debenh@ms & Te5co for the reward vouchers and clubcard points)

    In September we are having the main bathroom and DD's ensuite replaced. The main bathroom is horrid and has been for the 5 years we've lived here. We've tarted it before but now the toilet is no longer usable (an essential part) and changing that meant changing the flooring (fitted to it and disintegrated) and tiling (again fitted around it – stupidly!) and the bath panel was damaged when it was removed, so we've swallowed hard and taken the decision to go for it – partly because DD's ensuite shower isn't in there (just a gap), her bathroom doesn't have a radiator (just pipes), no flooring or tiles and the sink is leaky and the cupboard literally faling apart (cheap one) They should look lovely and last for years. It will use up some savings, but will be worth it – we have two basically unusable bathrooms (we have a separate huge bathroom ourselves) which is, frankly, ridiculous with 4 children! (toddler to teenager)

    We have forgone big expensive foreign holidays the last few years. We're having a week in a relative's caravan in Devon this year (free apart from site fees) and 4 days in Disneyland Paris (half paid for by cashback deals and 2 of the children were free) In 2007 we went to Disneyland Paris for a week, Centre parcs for a week, London for 4 days, Devon for a long weekend and Florida for a fortnight… !!! Eeekkk! 😉

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  7. I transfer money into a savings account every month to pay for house insurance, car tax, insurance and servicing. This year there was £150 left in it so I have ring fenced it 'just in case we need repairs to the car.

    As far as anything else goes I am still repaying the 3 moves in 2 years debt, it will take me some time. I pay as much as I can off each month, we have another couple of debts which I am trying to pay off gradually, one will be clear by next March, the other befroe then I hope.

    I am so looking forward to being debt free, I do find it hard at times but I will get there.

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  8. save while paying off debt too, i have to have an emergency fund, for all eventualities.

    I will be savign for house renovations, make take me an eternity, btu i will get there

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  9. I read a book by an Australian, known as 'the barefoot investor' who talks about making sure you have around $2000 in what he calls a 'mojo account' (essentially it's money for emergencies, so you don't dip into debt if issues arise). He talks of saving 10% of your salary til you hit the $2k, then putting the 10% into something else – debt, bills, investments.

    Works for me 🙂

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  10. We work out our budget each fortnight to a zero balance, so that all money is accounted for, that includes savings. We don't have much in that as we have just come back from holidays and are throwing all our cash at paying off our solar hot water system.

    Now we are buckling down for the next 6 months.

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  11. We save in a number of ways. One is by depositing directly to the savings with any funds hubby earns when he gives a fitness class at the gym. Also, once we pay our Amex bill, we transfer surplus checking money to savings. However, my guy has a maintenance schedule in mind for our two cars, so he always is sure to leave enough in checking for that. We pay for house projects out of the savings an from tax returns.

    We were both unfortunate and lucky to inherit some money this year. It is going straight to house repairs in order to get our house on the market. It is tempting to use it all to wipe out debt (mortgage, line of credit, etc.) but that won't move us towards selling. I believe we will do well with the sale. In the mean time, we do not use the extra savings as an excuse to spend. In fact, seeing it accumulates help strengthen my reserve to save more!

    And like others, we are not in pursuit of a show house!

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  12. I'm not sure how taxes work where you are, but here in the US out of every paycheck comes a federal income tax. Then once a year (April 15th) the government has set based on your income and a few other factors such as married or not, children or not and so on, how much you should've paid in taxes. If you've paid too much you get a refund and if you've paid too little you owe. you are allowed to have extra taken out of your check and we have a little extra taken out each paycheck. In April we get a nice refund, usually a few thousand dollars, and that goes straight into our emergency savings which we use through the year for things like sudden car reapairs. This system has worked out for us pretty well.

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  13. Hi there,

    I am currently working on a Channel 4 documentary and wanted to contact you to see if you might be able to help with some of the research that I am doing.

    Channel 4 have commissioned a Cutting Edge documentary celebrating Britain's best bargain hunters. Raw Television are looking to find contributors who are proud of their bargain hunting ways and revel in their frugal sense of spending.

    At this early stage in the process we're open to hearing from or about anyone who fits in to the film's theme of money saving, frugalism, and penny pinching and we are very much looking to celebrate this growing culture and want people who proudly embrace the lifestyle.

    When I came across your website I was really interested to read the advice you give out to people looking to save money. I was wondering if you might be able to put some information on your website about the programme we are making to see if any of your readers might be interested in speaking to us?

    Please feel free to give me a call if you have any further questions on 0207 017 1642 or send me your number and I will contact you.

    or you can email sophie.mohammed@rawtelevision.co.uk

    Kind regards,
    Sophie

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  14. Although we've got around £10k in credit card debt, I'm desperately trying to save. My husband spent several months unemployed last year, followed by 9 months of a temporary job, and is only now back in a permanent role. Problem is: it's not in his field and he earns 1/3 of what he did before he was made redundant. But it's a job.

    My big worry is that DH can't pay our mortgage if something happened to me/my job. (The mortgage is bigger than his monthly take home pay.)

    I'd like at least 3 months worth of expenses stashed away in cash ISAs. It's going to take time, but we'll get there.

    – Pam (Love the blog)

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