Savings

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korolev
Posts: 479
Joined: Thu Jul 06, 2017 2:18 am
Location: Land of the South Saxons

Re: Savings

Post by korolev »

Never rely on interest rates. A few years ago I used to holiday in Turkey and I got to know a few expats. Many of them had sold up in the UK, bought cheap in Turkey, stuck the difference in a savings account and were living on the interest. When rates started to go south, some of them started dipping into their capital (further reducing the interest take obvs).
Last I heard one couple were trying to move back to the UK having exhausted their savings and, with property prices in the UK rising much faster than in Turkey, were in a right pickle (due to overdevelopment and supply outstripping demand they were struggling to sell).

Since taking early retirement I have a bit of cash stashed away in the erniebonds which is returning about 1.5%. The only way to get more is to invest in fixed term bonds but to get 2-3% you need to tie up your cash for a couple of years or more.
jansman
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Joined: Thu Dec 30, 2010 7:16 pm

Re: Savings

Post by jansman »

korolev wrote: Mon Nov 01, 2021 9:48 am Never rely on interest rates. A few years ago I used to holiday in Turkey and I got to know a few expats. Many of them had sold up in the UK, bought cheap in Turkey, stuck the difference in a savings account and were living on the interest. When rates started to go south, some of them started dipping into their capital (further reducing the interest take obvs).
Last I heard one couple were trying to move back to the UK having exhausted their savings and, with property prices in the UK rising much faster than in Turkey, were in a right pickle (due to overdevelopment and supply outstripping demand they were struggling to sell).

Since taking early retirement I have a bit of cash stashed away in the erniebonds which is returning about 1.5%. The only way to get more is to invest in fixed term bonds but to get 2-3% you need to tie up your cash for a couple of years or more.
Indeed. And that will be for as long as the looming energy crisis causes an inevitable crash.
In three words I can sum up everything I have learned about life: It goes on.

Robert Frost.

Covid 19: After that level of weirdness ,any situation is certainly possible.

Me.
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itsybitsy
Posts: 7659
Joined: Sat Nov 27, 2010 5:51 pm
Location: East Yorkshire

Re: Savings

Post by itsybitsy »

I try to have at least three months expenses (not income) set aside - in cash - however it ebbs and flows. As someone else has mentioned, it's for emergencies and if it needs to be redirected elsewhere, I do that then shore it back up again as soon as I can.
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WomanOfTheWoods
Posts: 58
Joined: Sat Jun 04, 2022 5:55 pm
Location: A Scottish Glen Overlooking the Moray Firth

Re: Savings

Post by WomanOfTheWoods »

I have been self employed for almost 30 years, I work almost every day of the year. I don't see this as hardship, as I would rather work every day for myself doing creative work I love, than work one day for an employer,

From the day I became self employed, I have saved £10 per day, every day, over 30 years. I did this as a single parent, who has never claimed one single penny in benefits my entire adult life. I saw saving as a major discipline. Deferred gratification. This was me being a Prepper,
I would withdraw the money from the bank weekly, kept a record of this, place the money in a jar on my work desk as a reminder of my goal and then physically deposited the money in lump sums into the bank every now and then.
In recent years, I have kept the withdrawing slips as proof for later depositing. That may seem a bit of a faff, but actually holding the money somehow gave my purpose, my end goal, more reality.

Just over three years ago I bought my smallholding mortgage free and the little £10 in a jar discipline, which was in excess of £100k by then went towards the land. As I work for myself approx 10 hours per day, £1 from every hour I worked went to the Smallholding Fund. I only ever buy what I need ,own only two pairs of shoes, drive a 15 year old car and last had a holiday 12 years ago.
Looking at me, my house and gardens, no one would guess I embrace frugal living. I chose to do this bit by bit towards an end goal. For me, that was prepping.
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Frnc
Posts: 337
Joined: Sat Mar 12, 2022 1:54 pm

Re: Savings

Post by Frnc »

I agree with everyone else, getting some savings is your number one prep, alongside a stock of food and water. As others have said, you want about 3 month's expenses in easy access accounts. If you have more, 120 day notice or even fixed rate for 1 year + might be worth considering. I never saved up enough, but I got part lump sums when I took my pension, so I have all three types.

Paragon fixed rates (min £1K) are better than most, 2.25% for a year, 2.4% for 18 months, 2.55% for 2 years. 120 day notice (min £500) is 1.6%. Triple Access (min £1, up to 3 withdrawals in a year) is 1.3%. I have Easy Access on 1.39% but they don't seem to be offering that anymore. They do offer an Easy Access, but only at 0.5%.
grenfell
Posts: 3431
Joined: Thu Jul 04, 2013 7:55 pm

Re: Savings

Post by grenfell »

When i was something like 13- 14 I made up my mind to have £100 saved which while I'm not sure how I got there I did get that £100. I then aimed at £500 and then £1000 both of which I managed and it put me in the sort of mindset to save. When I started work I would draw my money out of the bank once a month. One weeks wages went to my parents as board and lodging , one week for everyday spending and the remainder went into a high interest account in the building society. Mother managed not to spend all the board so ultimately that served as another form of saving although it would be over thirty years before I would inherit it. My own al!owance didn't get fully spent either and I saved from that for things like car insurance. The saving worked and I brought my first house outright when I was 27. I've explained all this to my daughter ( who's 17) and she has adopted a similar method and already has a decent pot.
Funnily enough I recently did some work for a customer and she paid in cash . It was something like £350 and she had to pay in two lots as she said she didn't like to keep large amounts of cash in the house . Different to us I though as we like to keep a few thousand ready to hand.
WomanOfTheWoods
Posts: 58
Joined: Sat Jun 04, 2022 5:55 pm
Location: A Scottish Glen Overlooking the Moray Firth

Re: Savings

Post by WomanOfTheWoods »

That's the way to do it Grenfell,,,, consistent steady progress.
And it's important to encourage our children in the same direction.
Most people I talk with only look at the end goal, rather than break down the steps to get there.
I place my daily savings in a jam jar at my computer. And whenever I get fed up and want to go off to work on the garden, that jar is a reminder of why I'm working..... towards a goal.

From my own personal perspective, I couldn't care less about interest of deposit accounts. That won't make much difference to the grand scheme of things. I want to be in charge of my own destiny. Make my own decisions and live as self reliant as possible whilst still benefiting from modern technology when needed. I feel we are at a pivotal moment in history and more and more people will be questioning their lives and changing how they live.

The reason many people have no savings is because they have chosen to consistently buy things and stuff to make them happy for that brief moment.
All those bags of crap from Primark,,, throw away fashion from George at Asda,,, takeaways that never taste as good as the desire to order them all add up.
In my case going without them added up to a smallholding. That's got to be food for thought.
Ara
Posts: 53
Joined: Mon Sep 10, 2018 3:20 pm

Re: Savings

Post by Ara »

Having been a saver all my life it came as a shock when I got married to a spender. It took me a few years to realise that, although all of the money we each earned was considered "ours", if I wanted to have a cushion, I would have to keep it secret from Mr A. He now knows I have money saved but not how much. This has come in useful at times when a big unexpected bill (e.g. a new boiler) has come in. I too, like to keep some cash as you never know when the computers that run the banks these days will go down as experience has shown with people being unable to access their accounts.
WOTW, your owning 2 pairs of shoes reminds me of the time I had to borrow a "nice" pair of shoes from my mum to wear at a wedding although I do own about 6 pairs. Even then, my newest pair is 4 years old.