What’s everyone’s money saving a budgeting like?
I’m curious how people get on with it, tips they have etc.
Currently i’m attempting to save for a home and future retirement.
I have recently opened a LISA (lifetime ISA) which lets you save up to £4000 a year tax free (the ISA part), the government adds 25% to the account and it can be used to buy a first home, or used for retirement (cant be touched until 60 if not used for a home without penalty).
If your planning at all to buy a first home, this is a no brainier. There’s also a 1 year buffer period where you cant use the account for buying a house, but even opening one now and putting in £1 gets the clock ticking and you cant beat a guaranteed 25%
I’ve also got savings in a stocks and shares ISA again for the tax free benefits on any money made from the account, i’m not doing anything fancy with it though, its just in index trackers but has been doing well. My plan is to slowly build that up and leave it for 20 odd years.
5% of my money goes into my pension as well with a employer contribution of 10% for a total of 15% so this is also doing well, its not a bad pension, but not the highest around either. Unless you have large debts to pay off, putting in the maximum percentage that your employer will match is free money for retirement.
Admittedly my emergency fund is a bit low so i plan to build that up some more the next few months. I highly recommend if you do nothing else, have an emergency fund that has enough money for a few months of expenses. I generally put easy to access money in a monthly saver type account, you can usually get 3-5% interest on these accounts but you usually have to open a new one every year.
The thing that i’m still not great at is good budgeting, i’m not bad with my money but i could do a lot better in areas like food expenses for example. How do people handle this?
One thing I’ve been trying is a new bank account that has really easy automatic categorisation and targets for spending, its looser budgeting, but this seems to work quite well to give me a reasonable good idea of where my money is being spent.
I’ve also found this chat to be pretty good for how to start managing your money (from r/ukpersonalfinance)
There is a US version here (from r/personalfinance)
What does everyone else do?