Saving efficiently?

turnikett1 · 19-01-2017 10:55am #1

How the hell do ye do it? I have a 21 days savings account, which is meant to mean that I can only access it on a 21 days notice. However, if you simply go into the bank itself and ask for a transfer, they'll do it with no fee incurred. Similarly, the bank has a telephone line that is open from 8am-10pm on weekdays and 10am - 5pm on weekends. The whole process of ringing them, asking for a transfer (with no penalty) and hanging up takes about 2-3 minutes. So in effect it is pretty much a useless savings account (on my part!).

I had a credit union account but it was the same shenanigans, just pop in whenever I'm broke and withdraw some money. It's not even that I'm blowing all my money, I just don't have a lot to begin with and in those 2ish days before I get paid (weekly) I need to get better at just sticking it out and eating pasta.

Do ye have any foolproof methods to saving money? Any way for it to absolutely positively NOT be touched!? I need help...

Boom_Bap · 19-01-2017 10:56am

I'll mind it for you.

whiskeyman · 19-01-2017 10:56am

Do a budget and see where the money is going out.

eviltimeban · 19-01-2017 10:57am

Saving money? La di da...

biko · 19-01-2017 10:57am

A jar by the door for your pennies.

stimpson · 19-01-2017 11:05am

Try spending less than you earn. Works for me.

valoren · 19-01-2017 11:06am

1. Open an investment account with a low cost broker (e.g. degiro)
2. Ensure you have online banking set up.
3. Set up a standing order to transfer a set amount e.g. €500 to the above investment account on the date you get paid. (pay yourself first)
4. Pick five of the biggest blue chip companies on the planet, the ones that will be around forever, and buy a share in each company at 50c per trade with the saved money. (stuck for examples? think Colgate, P&G, J&J, Coke, Exxon etc, all companies from the 19th century and likely to be around in the 22nd century too).

You have thus, set up a defined savings plan with a set amount, you have set it to save semi-automatically - the money get's moved but you must make monthly investment (click of a button basically) - your savings is put to work for you generating a dividend and not some pathetic interest from a bank. And you can sell them whenever you want to get instant access if required. (well, not instant, once the money is transferred back to your bank account that is)

Bambi985 · 19-01-2017 11:09am

Do a budget, transfer to savings on pay day and then just summon up the willpower not to go over budget and take from your savings.

Be realistic and make sure you're budget is actually enough for the things you'll be spending money on.

I can dip in and out of my savings whenever I like. Unforeseen expenses means sometimes I do. But sticking to a realistic budget means I'm always saving at least a third of my pay check every month

pwurple · 19-01-2017 11:11am

Are you saving for something? A target always helps.
There's no place you can put your money that's completely off limits, it is your money after all.
Does your company have a stock purchase plan, or a pension scheme that you can use?

Winterlong · 19-01-2017 11:16am

Have a target.
Have a realistic budget that you can live on.
Have will power not to touch your savings.
No one can do it for you.

daheff · 19-01-2017 11:34am

valoren wrote: »

1. Open an investment account with a low cost broker (e.g. degiro)
2. Ensure you have online banking set up.
3. Set up a standing order to transfer a set amount e.g. €500 to the above investment account on the date you get paid. (pay yourself first)
4. Pick five of the biggest blue chip companies on the planet, the ones that will be around forever, and buy a share in each company at 50c per trade with the saved money. (stuck for examples? think Colgate, P&G, J&J, Coke, Exxon etc, all companies from the 19th century and likely to be around in the 22nd century too).

You have thus, set up a defined savings plan with a set amount, you have set it to save semi-automatically - the money get's moved but you must make monthly investment (click of a button basically) - your savings is put to work for you generating a dividend and not some pathetic interest from a bank. And you can sell them whenever you want to get instant access if required. (well, not instant, once the money is transferred back to your bank account that is)

This is extremely poor advice. No offense, but you (OP) dont seem to be too financially literate, so if a professional gave you this advise you'd be looking at suing them for it.

I think your best bet is to learn discipline. Put X amount into a savings account every payday and leave it there. Dont touch it until the savings pile hits a certain amount (what are you saving for??)

valoren · 19-01-2017 12:30pm

daheff wrote: »

This is extremely poor advice. No offense, but you (OP) dont seem to be too financially literate, so if a professional gave you this advise you'd be looking at suing them for it.

I think your best bet is to learn discipline. Put X amount into a savings account every payday and leave it there. Dont touch it until the savings pile hits a certain amount (what are you saving for??)

How would they be sued? Genuine question.

That the value of the investment can fall I'm presuming?

I'm assuming the OP knows that, I'm also assuming we are dealing with regular small sums and not hundred's of thousands of euros that needs to be protected and accessed immediately protected by deposit guarantees or held in bonds.

The suggestion to invest is simply a recommendation to put the money to work in a stock (or a low cost index fund, that holds the mentioned stocks anyway), rather than let inflation do the damage to the savings in a bank account earning little to no interest.

BetsyEllen · 19-01-2017 12:35pm

I have a standing order that goes directly to my credit union every payday.

I can withdraw anytime I want but their opening hours and the distance from my work make it very difficult to do so.

ytpe2r5bxkn0c1 · 19-01-2017 12:36pm

Put it is a state bond or certificate where it is deposited for 3 or 5 years.

pickarooney · 19-01-2017 12:36pm

You've misidentified your problem, which is that you haven't enough money, not that it's too easy to access.

osarusan · 19-01-2017 12:40pm

pickarooney wrote: »

You've misidentified your problem, which is that you haven't enough money, not that it's too easy to access.

This is my conclusion also.

Unless you are spending money on stuff you don't need (which isn't mentioned in the OP), and you are still hungry before payday, then the problem isn't as much not being able to save it, as not having enough to make savings.

Grayson · 19-01-2017 12:41pm

biko wrote: »

A jar by the door for your pennies.

That's my strategy at the moment. And an occasional lotto ticket.

eviltimeban wrote: »

Saving money? La di da...

Some day....

Pyr0 · 19-01-2017 12:43pm

I personally budget my finances for the month AFTER I put away X amount of money for savings, it was trial and error over a number of months. If i found myself taking from my savings towards the end of the month (for actual expenses, not just drinking it away), i'd reduce the amount of savings for the next month but still be putting something away rather than nothing.

omb0wyn5ehpij9 · 19-01-2017 12:48pm

You need to spend a couple of weeks making note of everything you spend. Once you have this, it will be clear where all your money is going and will tell you if you are wasting money on stuff you don't need, or if you are putting too much money in your savings when you get paid and are leaving yourself short for the necessities

kyeev · 19-01-2017 1:10pm

I spent every penny using a credit card which I clear at the end of the month.
That way, with the credit card bill, you can see your spending habits.
And work out a budget and where you're wasting money.

19-01-2017 1:16pm

If you're getting advice here, it's from people who have enough to save.. It sounds like you simply might not. Get an app and put everything you spend into it for a while and see where your biggest expenditures are. You could have some lifestyle creep and not really be aware of it.

My only savings advice is what works for me.. Don't spend it.

jamesbere · 19-01-2017 1:17pm

Make a list of your most important outgoings in a week, eg rent/mortgage, car, bills and food. Then take that off your weekly wage and that's your savings. Then with that see what your willing to put away after that.

I always plan ahead financially at the start of each month so I don't overspend when my rent and bills come out at the end of the month, I find it help me save more money.

jester77 · 19-01-2017 1:32pm

Ah here, its not bloody rocket science. Just put money into a savings account and don't touch it.

Do a budget and save what you have left.

seamus · 19-01-2017 1:38pm

daheff wrote: »

This is extremely poor advice. No offense, but you (OP) dont seem to be too financially literate, so if a professional gave you this advise you'd be looking at suing them for it.

I think your best bet is to learn discipline. Put X amount into a savings account every payday and leave it there. Dont touch it until the savings pile hits a certain amount (what are you saving for??)

It's actually not bad advice provided that you're disciplined about it.

Spreading your money out across a wide range of multinational blue-chip companies means that your money will track international inflation over the long-term, up and down. It will be immune to small national events and currency devaluation.

In a standard savings account, inflation of your savings is at the whim of the bank and the local conditions and very vulnerable to upsets in currencies or local conditions.

In the former you potentially miss out on cycles where the local conditions are very strong (a la Celtic Tiger), but it also leaves you insulated from any massive busts.

Mr.Plough · 19-01-2017 1:45pm

turnikett1 wrote: »

How the hell do ye do it? I have a 21 days savings account, which is meant to mean that I can only access it on a 21 days notice. However, if you simply go into the bank itself and ask for a transfer, they'll do it with no fee incurred. Similarly, the bank has a telephone line that is open from 8am-10pm on weekdays and 10am - 5pm on weekends. The whole process of ringing them, asking for a transfer (with no penalty) and hanging up takes about 2-3 minutes. So in effect it is pretty much a useless savings account (on my part!).

I had a credit union account but it was the same shenanigans, just pop in whenever I'm broke and withdraw some money. It's not even that I'm blowing all my money, I just don't have a lot to begin with and in those 2ish days before I get paid (weekly) I need to get better at just sticking it out and eating pasta.

Do ye have any foolproof methods to saving money? Any way for it to absolutely positively NOT be touched!? I need help...

If this is with AIB, I have the same account. Tried to take out a few quid a couple of months back when I was stuck and he said they don't let you anymore (without a significant amount of hassle).

Mr.Plough · 19-01-2017 1:53pm

BDJW wrote: »

You need to spend a couple of weeks making note of everything you spend. Once you have this, it will be clear where all your money is going and will tell you if you are wasting money on stuff you don't need, or if you are putting too much money in your savings when you get paid and are leaving yourself short for the necessities

This. I was only broke until I realised I was spending 200 quid a month in Spar (outside of normal food shop)

Viscount Aggro · 19-01-2017 2:01pm

You need to start thinking of REAL savings. Not putting away 50 or 100 per month, but more like 1000 per month. Not everyone can do that. But a middle earner family with 40K income could do it. Leave the investing for another day.

Four Phucs Ache · 19-01-2017 2:01pm

My dad used to buy bank drafts every month for 500 and put them in his safe(old jacket pocket in the wardrobe)They never go out of date unlike cheques and when he needed money he had to lodge them and wait a few days till it cleared depending where he lodged it.

I have a 31 day notice account and it's handy.DD every month and can transfer online.There is no way around mine though so if the engine blew or whatever I HAVE to wait the 31 days.

ScumLord · 19-01-2017 2:09pm

Here's a handy tip. If you can't afford something but really want it, steal it.

MilesMorales1 · 19-01-2017 2:12pm

I write a budget, write in luxuries like my cinema card, a cake on fridays for a treat, etc, then leave that amount in my account, along with a small additional amount just in case, then everything else gets saved in the credit union.

Once you get into the habit of budgetting and cutting unnecessary stuff, it becomes a lot easier to do and you don't miss it. I was spending over 2 grand a year on cigarettes at one point, for example.

19-01-2017 2:21pm

When interest rates are as low as they are there's little benefit in normal savings accounts.

Saving efficiently?

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