Thrift

Joined
Monday June 18, 2012
Location
Hampshire, UK
Any advice/tips? We are in our mid-twenties and have started to set some saving/life goals; mortgage, travelling etc. We earn well and have no real concerning debts other than (extensive) student loans and an easily managed career development loan. But we spend too liberally on holidays, meals out, nights out in London etc. So, having relished earning a decent packet since joining the working world a few years ago, we could do with tightening the belt and putting some money away.

Any money-saving ideas and financial advice (preferably without turning into the tight bastard who goes AWOL when it's his round)?
 
See moneysavingexpert.com and download Martin's budget package - or just make your own budget. Monthly amounts for leisure, clothes, food, de dah and savings - then stick to it. Unbudgeted spending - like me on shaving crap - is where the money runs away from you.
 
Besides setting a budget and sticking to it carry what you need for the week in cash, impulsive purchases become less so when you physically have to hand over the lolly.
 
antdad said:
Besides setting a budget and sticking to it carry what you need for the week in cash, impulsive purchases become less so when you physically have to hand over the lolly.

Good advice.

I always transfer whatever no matter how much is left over from wages even if just 50 quid or so into savings to try and boost it as saving can be hard sometimes.

Packed lunches for work is cheaper as well
 
Near as possible to the 1st of each month I put a fixed amount into our local credit union. In all the years I've been doing it I've not yet made a withdrawal. The dividend isn't much, however it helps others with low interest loans and I know not to touch my " rainy day " fund. The obvious stuff when I was working were just things like preparing a packed lunch and carrying a flask rather than buying convenience foods.

JohnnyO. :icon_razz:/.
 
Make a realistic budget and stick to it. But, pay yourself first every month: build a reserve fund equal to 12 months' basic living expenses to see you through any workplace set backs or other emergencies and set aside 10% of your monthly net income for your old age. In this latter regard, remember the miracle of compound interest.
 
FOCUS GROUPS :icon_razz:

Taking part in these has earned me £Â£s over the years, simply for giving my opinions. You're often liberally fed and watered as well as getting generously paid.

I can recommend Focus Force.
 
If you have a mortgage pay any extra you have to pay it quickly, there is no other quicker money making safer way for Britain that I know of, we took our first mortgage in 2010 and so far we paid almost 50%, from 20 years mortgage we are looking to pay this debt in around realistic eight years.

Oh ye.. Drive an old Passat and shave with a Rimei razor loaded with Voshkod blades on a bed of Palmolive stick lathered up with a Bestshave No.6 boar brush.
 
This is something that I should have done years ago but still haven't gotten round to - work out what you need to spend each month and then arrange a transfer of the difference into some other account. Just the fact that it's in a separate place should change your attitude to spending it.

You could even consider splitting some into a readily available account and the rest into a longer term not so accessible one.
 
Rob's suggestion is something I did a good few years ago and it really works ...

What will happen is, simply, you'll spend what you have. I think you're already realising that you do spend too much, but can't see how you can manage by not spending it all. Using another bank account and keeping in there only what is reasonable for the month, and when it's gone, it's gone ... it'll find its own balance within a couple of months.

The rest? Save.

Save in an ISA for long term, perhaps invest for even longer term in the market if/when you have a decent lump to do that. Save in an easier access package for your holiday. Enjoy your holiday and proper blow out! Takes loads of spending money, splurge, be frivolous, treat yourselves. One good holiday, say in the summer and a couple of weekends away autumn and spring is how we do it and really look forward to it. Live within budget, or what budget you set otherwise.

Going out is not something we do much, what with me being a damn good cook and even proper fly restaurants being, well, a bit of a disappointment (personally, I like Chimichangas, a Mexican junk food joint), but we're getting into it once a month. The rest of the time, we eat very simply: meat, fish, shellfish, eggs and vegetables. Very little in packages, if anything, just simple veg and meat from the farmshop. I can come away with two or three carrier bags of food, full up for little over a tenner at the farmshop. Buy some things in bulk, too. Eat simply, eat frugally, cut down on the drink (no, do ... I know death is a long way away when you're in your mid-20s, but the seeds are sown now), so perhaps a bottle of wine with Sunday dinner, no drinking on school days, that sort of thing. We're not talking pennies saved here, nor pounds, but many tens, if not hundreds a month.

Cars are a huge overhead. Can you manage with one? Can you thrive with just one? Can you do without? Genuinely look into the mileage that you do and insure accordingly. Mrs saved over a hundred by dropping mileage from an assumed 6000 a year to a genuine 4000 on her insurance. Not much, granted, but perhaps folks at your end of their life may see a greater benefit.

Loads of ways ...

But, two which have made a huge impact for us are (a) live within a budget, set strictly in a bank account where when the money is gone, it's gone; and (b) eat more simply, eat out as a treat, treet drink as a treet not a way of life. Hundreds per month can be saved from simply being spent for no other reason than it's there.

Good luck!
 
Lots of good advice here and as a similar age to you Burgundy, I sat down with my now wife 5 years ago and had the same discussion. We cut down massively on nights out and holidays and got our foot on the housing ladder. Since then we have overpaid every month on our mortgage and continue to do so at the expense of going out less etc. I'm saving for an early retirement and the best way IMO is property.

But don't forget, tomorrow could be your last day and you'll never know it. Don't live your life completely sacrificing things only to later regret it. In my line of work I come across some massively wealthy individuals but their lives are not complete.

Some of richest men in the world have nothing.
 
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