WTBSEs 'Starting From Scratch' Savings Diary.

A question about : WTBSEs 'Starting From Scratch' Savings Diary.

Welcome to my savings diary

A little about me. I am 34 (eek!), a single mother of 2 and work as a self employed cleaner.
Earlier this year i became debt free and decided to start saving some money.
I saved about Ј200 and then my car failed its MOT in spectacular fashion, so my savings went back down to Ј0.

Now i am on a mission to save Ј5k, or as close to that as possible.
I am aiming for:

Ј1500- Car (i need a car for work, so i want to have enough in the bank to buy a
cheap second hand one). Done

Ј2000- I desperately want to move house.

Ј1500-Emergency Pot.

I am on a low income, so Ј5k is a lot of money to me! So far i have saved Ј480.10.
It wont be quick, but i am just happy to be able to save something

Best answers:

• Well done! In the current climate and especially if you are on a low income, being able to save anything is a great achievement. By just having some savings already you are doing better than many people. I see savings about being able to give yourself options. If you have money saved you can fix the car when it breaks, you can take a holiday or treat the kids. Without savings you can go into debt to do those things but it will cost you far more and may not be sustainable.
  Keep going and that Ј5k will get closer and closer
• Thanks jimjames,
  i find it easier to save if i have something in particular to aim for. At the moment, i have the car in mind so my 1st aim is the Ј1500. I am currently treating it the same as i treated the debt- only spend what i NEED to spend and throw the rest at the savings pot.
  once i have that Ј1500 in the bank, i am going to allow us a few treats, but i am very aware that i cant work unless i have a car. So, the car comes 1st.
  You are right, savings ARE about being able to have options, i definitely agree!
• Good luck WTBE!
  Have you made sure that you have the best savings or current account? For current accounts especially there is free money to be had if you pay in a certain amount each month - Halifax Reward offeres Ј5 per month if you pay in Ј750, and Lloyds Vantage offererss interest on balances up to Ј3000 if you pay in Ј1000 each month (it doesn't have to stay there though and so you can use it as a savings account).
• Thanks for the advice Pineapple
  Because of my history with debt, i have a shocking credit score, so i dont think i can open other bank accounts at the moment. However, i am planning on improving my credit score. I have a credit builder credit card (capital one) and will spend and pay off in full every month.
  At the moment i have a current account (basic account)- this is my general household spends income etc is organised. All of my SO's and DD's come out of this one, and all payments from clients are made into this one.
  I also have an e-savings account. This one is for my emergency savings (when i get around to using it!). At the moment i just put a few Ј in it at the end of every week. If i have Ј7.56 (for example) in my basic account at the end of the week, then Ј5 goes straight into my ISA (see below) and the remaining Ј2.56 goes into this one.
  Once i have the Ј1500 saved up for the car, then i can put some more money in this e-savings.
  ISA- This is the 1 that i am concentrating on at the moment, as it's where i am currently saving up for the car (and will also be where i put the rest of my savings for moving house etc).
• hi WantToBeSE, will be watching your journey with interest becos I'm trying to save up Ј1,500 too - by Christmas, is the goal. And after that I'll be setting another savings goal for next year, so hopefully all we would-be savers can cheer each other on.
• Hiya Cathy, i have been reading your diary with interest! It'll be great for us all to have some moral support.
  I think that on your diary i read some comments about how spending can alleviate boredom. I totally understand this!
  I have now started trying to fill my time with free things. They may not always be exciting (think housework, DIY and all those little jobs that you mean to get around to doing but never do!) but it stops me spending.
  Also we go out walking when we can. The older son (now 14) moans about this, as it's not exactly fun for him, but we all enjoy getting some fresh air when we can.
  Also we have movie nights. My friend was recently having a clear out of her DVDs and gave us 10 of her old ones for free! So i bought a huge packet of popcorn kernals and we make our own popcorn and have movie nights.
  3 of my clients should be paying me next week, so i should be able to save about Ј200..but we'll see.
  Anyway, i am rambling on now! Great to have you on board
• Congratulations on not having to borrow money to fix your car. When you can open other accounts, a Nationwide Flexdirect account will be better than Lloyds Vantage, as it pays 5% on any amount up to Ј2500, provided you meet all the conditions.
• A great story! This is testimony to the power of setting yourself goals to aim for! If there is one thing to add, dare I suggest that you set yourself a target date to achieve these aims? Makes things much more fun!
  Once you say mission accomplished you can then set the bar that little bit higher. Perhaps an even newer car, a better paying job (if you move to a better area then you must have a better chance of getting one) and an even bigger cash pile.
  Include your kids in this as well. You'll be handing down a very important skill to them. And every time you achieve a target, get that popcorn machine rattling big time!
• Thanks everyone for your posts, it's lovely to log in and see some moral support
  Quote:
• Hi All
  Another day, another dollar! I have met with my new client today, to discuss what she wants doing. I will go to her every other Monday morning for 3 hours, so it'll be an extra Ј30 a fortnight. I wont even touch that, it'll go straight into savings.
  I got my 1st National Insurance Contributions letter from the HMRC today, but that doesnt have to be paid until Jan, although it'll probably be paid in December instead, incase i forget.
  I have plans to redecorate my house with the paint i already have. Green for the bathroom and Red, Cream and Brown for the lounge.
  To make it cheaper, i am going to concentrate on accessories that i can take with me when i move.
  A B&M have just opened near me, so i have been pricing things (cushions, shelves etc) up on their website and to accessorize my lounge and bathroom will cost approx. Ј50 My plan is too save that out of my grocery budget instead of finding the money from somewhere else.
  I am hoping to get more private clients instead of relying on the agency, that way i dont have to worry about putting all my eggs in 1 basket.
  I have decided that over the Christmas period i will only take off 3 days; Christmas Eve, Christmas Day, and Boxing day.
  The agency is closed for 2 weeks but will line up work if i want it. I never go out for NYE or NYD, so i am happy to work for both of those days
  Every Ј counts!
• Found Ј20 on the floor today! Have put it into my sons school dinner money pot, so wont have to withdraw Ј20 from bank, will transfer it to savings instead
  Boiler is fixed, so the heating is ON
• Sounds like it's been a good day!
• Thanks both of you, a good day indeed
  Was hoping for a bit of overtime via the agency this week, but alas there were none available in my area.
  1 of my clients has paid me today, so that went straight into savings (Ј40), so my new total is Ј520 Thats just over a 10th of my BIG aim of Ј5000...it feels significant that i hit the Ј500 mark
  Wont be able to save anything next week as i have to buy stocking fillers for the boys.