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Can people really save large sum's of money??

Discussion in 'Personal' started by RKM, Aug 14, 2011.

  1. RKM


    My parents have worked hard for what they have and they are enjoying it now.
    Both my husband and I work fulltime and earn the average. We have a £900 mortgage and other bills. We raised most of the deposit ourselves (this did include £5000 wedding present from my parents).
    Anyway I was chatting to my mum, she thinks we have thousands saved in the bank. After 5 years we redecorated the 3 rooms. Took the fireplaces out, new wallpaper, carpet and floating fires. Each room did cost about 1500, but now we have limited savings.
    I know my parents made money from selling a house down South during the time you could buy a house for like 50000 and then it sold for 200000.
    I just want to know is it possible to save large amounts of money and if so how???
  2. stopwatch

    stopwatch Established commenter

    If you are willing to move overseas to teach (both of you are teachers?), even if it were for 5 to 10 years, you could save large amounts of money.
    All accomodation and bills are paid for, plus free health care and the cost of 1 flight home each per year.
    Particularly in the Middle East (eg Dubai) a teaching couple could comfortably save £40,000 per year.
    If you were in senior or Middle Managers positions, this could be more.
  3. You are very well off. I don't understand how anyone with a child could even consider spending £300 on a fire, or expect a "proper"holiday every couple of years as you seem to, or afford a cable a cable tv package. You have choices, and priorities, and these clearly do not include saving. It is all very well saying you thought your house needed redecorating, so does mine! But apart from buyingt the occasional pot of B&Q value paint we are stuck with what we have for the for see able future. My child "needs" a new carpet, but for the last 10 years all we have been able to manage is a second hand rug, which at least makes it possible to kneel down to play on the floor.
    On the other hand, I'm not complaining. We have out priotiities too, and I'd rather the family had a store of happy memories from interesting days out and cheap fun camping trips, even friendly nights in with good quality board games, and I pay for internet access, and I invite friends around for meals. If we didn't do all this, we could probably have had that new carpet, but I don't regret the choices I've made.
    It sounds like you have a lovely home. Do you have extra space? You could use a spare room for visiting foreign students in the summer. This can work out well, as it is a short term commitment only, at a time when you are not at work, and may be interesting for your child too? If it works out, you can do it again, if you don't enjoy it, you can have your name removed from the list..
  4. My wife and I between us earn about £45,000
    We have never had sky/cable
    We both have old mobile phones (7 years and 8 yeears) on PAYG tariffs
    We pay all bills etc by Direct Debit
    We have Standing Orders which push money out right after salary day - they go out at the same time as the bills so are seen as an ordinary outgoing.
    We have a hoiday accoubnt which also has monetyy paid in by SO so that we have a fund for a hoiday. Much better at £200 a month than a struggle to find a lump sum
    For a long time mine was the only salary so everytthing was done to that amount - everything my wife earns is directed to savings

  5. magic surf bus

    magic surf bus Star commenter

    I don't know if there'll ever be another time like the late 80s when house prices in the South were significantly higher than in the North and it was possible to make a decent sum on the move, as we did.

    You can save if you don't overspend. Our house is small - we deliberately went for one we could pay for with only one income, as Mrs MSB wanted to stay home with the kids when they were little. When interest rates went into their teens in the early 90s we struggled, and used to clothe the kids from second hand sales. We've extended into a small conservatory which we use as an office/study but we've never moved into the size of property that most of our friends have. We've been bursting at the seams in recent years but we've managed. Both of us have run small part-time businesses alongside teaching to bring in extra money, me buying and selling, her making and selling. We sell old junk at car boot sales whenever we can, and I've put eBay to very good use.

    We tend to buy cars and run them into the ground rather than replacing them every two or three years - we had one car for 12 years from new and sold it for £60. One of our current vehicles is 10 years old from new and we plan to keep it for two more years at least. Our other car was bought on the scrappage scheme so we made a saving there. Classic vehicles are cheap to buy and hold their value - I had a 1975 VW camper which I owned for 7 years and sold on for what I'd originally paid for it.

    When I switched to supply and Mrs MSB went self-employed we had to look very carefully at the money. The biggest savings we made were:

    1. Knocking £500 a year off the gas bill by having a condenser boiler and room thermostats fitted. I'm currently upgrading the loft insulation to try and knock some more off.

    2. Switching back to NHS dental care.

    3. Cancelling daily papers and all paper deliveries - you'd be surprised how much you pay for that in a year.

    4. Buying a more economical car with lower tax, insurance and better mpg, and using it for all long journeys. We'll probably keep it for 10 years if we can.

    5. Buying low cost basic foodstuffs like Sainsburys Basics, and keeping an eye out for yellow label (end of sell by date) bargains. I suspect our biggest single source of saving has been in the supermarket. Buying long sell by date items in bulk and storing them whenever there's '£5 off a £30 shop' offers. Not buying ready meals, unless yellow labels or special offers.

    6. Buying from eBay or elsewhere online when it's cheaper to do so, and signing up for Aldi and Lidl's e-mail list to spot bargains in advance.

    7. Low cost holiday accommodation - we own a camper van which is something of an extravagance, but we're self-catering, 100% solar powered for electricity, we rarely pay more than £10 a night to park it in this country, and a lot less in France, typically 5 Euros. Booking the ferry well in advance (ie January) is cheaper too.

    8. Buying our beer and wine in quantity when in France, not in the UK.

    9. Using £9 a night Travelodge offers when travelling without the camper van.

    10. Putting Tesco Clubcard vouchers to good use - Alton Towers, Eurotunnel etc.
  6. It is possible. to save large amounts of money if you wish. If saving means more than going on holiday, expensive nights out, frequent trips to the hairdresser and having the latest electircal equipment.

    I have a friend who owns a beautiful house, has three foreign holidays a year and she and her husband both now work part time. She very rarely buys new clothes however and when she does they come from cheap shops, she does not spend a great deal on her appearance - make up and new hair cuts are very rare and she will shop for bargains.

    Another friend has a mortgage on a lovely house, her and husband work full time in very well paid jobs and have all the latest gizmos and gadgets and my friend is always buying new, expensive clothes and gets her hair and nails done regularly. They have a significant mortgage and have some debt.
    Just thought I would use these two people to illustrate that if you want a bulging bank account you have to make sacrifices. So yes it is possible to save a significant amount of money (and thus pay your mortgage off early as my friend did) but you cut your cloth to meet your measure to do so.
  7. My father has a friend at work who struggles with managing his money and has always had issues with gambling. He wants to save £3000 for a holiday so gives my father money every week which dad puts away in cash. The logic is that if he put it in a bank he would be able to take it out, if he gives it to a member of his family and he went to ask them for some of it they would give it to him. My dad has told him if that if he ever asks for any of it before it reaches the £3000 target then the deal is off. It seems to be working, he's got £1500 so far. I know this because my dad showed me where it was just incase anything were to happen to him and my mum then I would be able to return it. I thought it was really sweet, my dad has even labelled the tub 'this money belongs to.......' and he gives his friend a hand written reciept each week for the money collected. Very old school but lovely.
  8. Ahh JennyM your dad sounds lovely.
  9. He's amazing and the most honest person I have ever met, his friends money is in very safe hands.
  10. Have I got this wrong - are you really saying the money is in a tub? Surely he needs to put it in a savings account? That way it would earn interest and be safe - what if your lovely dad gets burgled??
  11. kibosh

    kibosh Star commenter

    Eek! A burglers dream then. Might it not be an idea to suggest to your dad (and i agree, he does sound lovely indeed) that he keeps a copy of all the receipts in the tub, but actually puts the money into Premium bonds? Like that the money can not be stolen or destroyed by fire and his friend has the chance to maybe 'earn' an extra £25 here and there in winnings?
  12. Yes, it's in a tub, in their safe which is hidden in a rather obscure and non visible place. I know a bank would make more sense as would the other suggestions made about bonds etc. Like I said, this is a proper 'old school' arrangement, they both like it like this. If my dad got burgled he would replace it.
  13. You are so lucky !!!.
    A £5,000 Wedding present from your parents.
    Decorated 3 rooms in 5 years.

    Yes, I do have savings although by some posters accounts of saving £1,000 a month, my savings are probably small.
    1. I do not smoke or drink.
    2. I drive a small car.
    3. I rarely go out - maybe twice a term.
    4. I don't eat takeaways etc.
    5. I buy clothes in the sales.
    My bedroom has not be decorated since 1998. Other rooms have not been decorated for 10 years or more. The bathroom was done in 1986 and is dated but clean.
    Having a beautiful modern home is lovely but who sees it really !.
    I am single so my savings are my future. Even if you can save just £25 a week, in a year you've saved £1300. In 10 years of saving £25 a week, you will have saved £13,000.
  14. Chica77

    Chica77 New commenter

    We can't afford to save a penny - you're not alone! We have a 2 year old and a 3 month old so i'm on maternity leave again. The child benefit we get goes on nappies, wipes etc, we definitely can't afford to save it.
    We live in a 2 bedroom 2nd floor flat, so definitely not our 'forever' place, and the mortgage is £650 a month (in the South East). My husband has a loan he's paying off, but apart from that we have no debts. We each have a mobile phone, but we don't have Sky TV or anything. We don't really go out a lot, and my only real treat is a coffee in Costa or Starbucks once or twice a week!
    When i go back to work next year we'll be paying extotionate childcare for 2 until the Sept when my son will be entitled to 15 free hours.
    I don't see us being able to save until my son starts school in 2013 when we'll only be paying childcare for 1.
    My parents have quite a lot of savings now, but they struggled when we were young. They finished the mortgage before they were 50, which is lucky, and a luxury i know i won't have!
    I think if you're living in a house, have a child and can afford to do refurbishments then you're doing pretty well!
  15. Not being difficult/critical, Daisy, just curious - what are you saving for?
  16. RKM


    A lot of good comments and opinions.
    Decorating was a must as there was damp so wallpaper had to be changed, we also removed the gas fires as they were old inefficiant and our little one kept taking the coal pieces out of them. All the work we did ourselves except the gas works which my dad did as he is a gas engineer.
    Our mobiles and cable are on the basic packages. (we have cable as we do use the internet, and to be fair I dont think we could do without it as we do a lot of our stuff online and I use it for school work)
    I know people have said "why am I saving the child benefit money? Over 18 yrs its nearly 18000. That will help with Uni!!!
    Hopefully our mortgage will come down this what with the news about interest rates today!!
    I ask the question because a couple of friends of houses have bought a property which they rent out. One couple, (not teachers) neither of them have a pension and they say they that will be their pension. I baffles me how they can afford 2 mortgages, considering the property is empty at the moment.
    It just baffles me as to how people save or is the whole world living on credit!!!!!!!!!!!!!
  17. anon8315

    anon8315 Established commenter

    I have two mortgages but only because one is very small due to the majority of the house being bought with an inheritance x
  18. Crowbob

    Crowbob Senior commenter

    Not very much at all. You will not be able to buy an awful lot for 18,000 in 18 years time.
    Let's hope that in the medium term you get some solid pay rises. At the moment interest rates are low, but by 2014 they are likely to start to rise.
    How much do they pay PER mortgage? I doubt it would be the £900 you pay, if they are in a similar financial situation to you.

  19. My tip is to reduce the mortgage as fast as you can. I know its difficult if you're living up to the limits of your income but if you can find any way to over pay your mortgage each month try to do that. That way you'll end up with more disposable income in the long run. The most expensive thing you'll ever do is borrow money - particularly on credit cards. If inflation kicks in like it did in th 70's there will be no point having savings anyway.
  20. RKM


    They have a 3 bed semi like us, and then they have 2 bed new build (well 5 years old now) which they rent out!!
    Yes £18000 may not be a lot in 18 yrs time, but its money that can be saved.
    I think I need to start doing the lottery again!!![​IMG]

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