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Cimbom

Let's build up some savings!

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Cimbom

Inspired by the paying off your credit cards thread, I think we should have a building up some savings one too!

 

We cleared our debts (except mortgage and HECS) last week and have opened up two UBank accounts - one for emergency savings and one as a fun travel account (to hopefully save for my LSL in two years).

 

The aim for the emergency savings one is to get it to 10k. This will cover our mortgage repayments and bare minimum spend for three months. It can be used for any emergency but we thought that was a good benchmark to aim for. I'm hoping to save as much as possible in the LSL one.

 

The current balances are:

Account 1 (savings): $0

Account 2 (LSL): $70 :lol: (deposited by accident by decided to keep it in)

 

I have my first lot of fortnightly direct debits scheduled for next week.

 

Anyone else want to join in?

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Silverstreak

Ooh, thanks for starting this thread, how exciting!

 

Er, I won't be joining in just yet, as I've still got $6,700 to pay off the credit card, lol! But I'd love to cheer you all on and get some tips for when I finally start saving.

 

I have heard that three months' worth of living expenses is a good amount for an emergency amount.

 

Cimbom, if you don't mind sharing, roughly what % of your income will go towards savings, I have no idea when it comes to this stuff.

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got my tinsel on

As someone who mostly uses cash for in store purchases (credit card is for emergency purchases) I've been putting aside every $5 note I receive in change since the first week of January.

 

Just added some more notes to the stash. Currently sitting at $330. Not bad for no effort other than putting the fivers in a side pocket of my handbag.

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Cimbom

Cimbom, if you don't mind sharing, roughly what % of your income will go towards savings, I have no idea when it comes to this stuff.

 

Just calculated it and it's about 26% if you include a bit extra on the mortgage - the two savings accounts together will be half of this. We added up our fortnightly expenses plus a bit of play money for spending and broke up the leftover into three to put on the mortgage and the other two accounts.

Edited by Cimbom
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Silverstreak

Ah, that makes sense!

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cardamom

Bleugh, I was all excited to be boosting my savings after a recent pay rise but my first pay slip has shown that the increase (which wasn't substantial) has bumped me in to a new HECS repayment category so the extra dollars will mostly be eaten up by extra tax. Booooo. Well, it's good to be paying down the HECS, but still :(

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needs to get out

We are following the Barefoot Investor percentages pretty closely.

 

I was paid out a redundancy last year, and out of that we put aside the recommended 3 months worth of living expenses in a UBank account (the rest went on debts and mortgage).

 

We have set up the other accounts with ING -

  • 60% of our income goes into our living expenses account (includes mortgage, usual bills, shopping, petrol etc)
  • 20% into a 'problem solver' fund, which has a balance of $2,000. This is to cover unexpected expenses, like a larger than usual electricity bill, new washing machine, SIL's vet bill. When the balance gets higher than $2,000, we transfer the excess to the mortgage
  • 10% into savings, we are currently saving towards a couple of holidays
  • 10% into wastings, or splurge, which basically gets spent on video games and coffee

 

I am a bit cross that we didn't start earlier, as I had sold some items for decent amounts on Gumtree and Marketplace (eg cot, lawnmower), and should have put that money aside into savings, whereas instead it was just spent in the bad spending mess we had going.

 

We are still getting used to it, and the holiday fund is going down more than up right now (recent night out, DS1's birthday etc) but I think its a solid plan and with a bit more practice we will get better.

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Minka1313

This is great motivation! I have been reading along the Credit Card thread. I hope you don't mind if I join in.

 

DH and I are very lucky to have good paying jobs but the funny/silly thing is that we were able to save so much more when we had less! Granted we didn't have kids then but honestly we just seem to waist money these days!

 

We have always been very good with debit - we only have the mortgage and never really use the CC's. Our attitude was if we can't pay for it we don't get it. Problem is this attitude doesn't work at the moment because we can afford things, so we do buy them.

 

Gosh, that makes me sound like a spoilt brat! Honestly, I'm not, I just have to change me way of thinking and I hope this thread can help me do that.

 

Cheers!

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~THE~MAGICIAN~

I'm in! Great idea for a thread.

It's always nicer having support.

We get paid monthly and today is the day (but not until late though) so will work out how much tomorrow.

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Kallie88

Great idea, we don't have CCs, so just the mortgage to pay off. Would be great to have a savings buffer even if it's just going into the mortgage and available for redraw. We're on a low income so everything I want to put on savings seems to disappear on like unplanned fix it needs. So I think I need to lower my expectation of amount and put it in the mortgage so I can't get it atm

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StillDreaming
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~THE~MAGICIAN~

We are following the Barefoot Investor percentages pretty closely.

 

I was paid out a redundancy last year, and out of that we put aside the recommended 3 months worth of living expenses in a UBank account (the rest went on debts and mortgage).

 

We have set up the other accounts with ING -

  • 60% of our income goes into our living expenses account (includes mortgage, usual bills, shopping, petrol etc)
  • 20% into a 'problem solver' fund, which has a balance of $2,000. This is to cover unexpected expenses, like a larger than usual electricity bill, new washing machine, SIL's vet bill. When the balance gets higher than $2,000, we transfer the excess to the mortgage
  • 10% into savings, we are currently saving towards a couple of holidays
  • 10% into wastings, or splurge, which basically gets spent on video games and coffee

I am a bit cross that we didn't start earlier, as I had sold some items for decent amounts on Gumtree and Marketplace (eg cot, lawnmower), and should have put that money aside into savings, whereas instead it was just spent in the bad spending mess we had going.

 

We are still getting used to it, and the holiday fund is going down more than up right now (recent night out, DS1's birthday etc) but I think its a solid plan and with a bit more practice we will get better.

 

 

I used to follow the BI. I don't know why I stopped. Going to hop back on tomorrow.

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raspberry sherbert

Me, I want to join. Currently saving a house deposit and wanting to open a general saving account, as well as a few money tins for smaller savings goals.

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Cimbom

Yay, great to see so many people interested in taking part. Will be interesting to see how we all go.

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Mooples

I’ve recently returned to work after 13 months of mat leave. We had a lot of unexpected expenses last year so our savings took a massive hit and we are keen to build it back up again. All my salary is going into savings so hopefully we start to notice the balance go up quickly.

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EPZ

I’d love to join too.

 

I have had rates, orthotics for DS, orthodontist, Birthday costs and it’s all come at once!

 

Trying to put 20% of my wage in savings, per month. I put $50 in kids accounts, pay off any credit card and Bills!!

 

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~THE~MAGICIAN~

I’ve recently returned to work after 13 months of mat leave. We had a lot of unexpected expenses last year so our savings took a massive hit and we are keen to build it back up again. All my salary is going into savings so hopefully we start to notice the balance go up quickly.

 

If all your salary is going into savings, you may not have much in common with the rest of us.

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CrankyM

I currently do about $400/fortnight. I want to do $500 but have been struggling a bit with that extra $100 as I swear everything has gone up lately, especially groceries. I need to rejig the budget a bit.

 

I don’t have separate accounts, just the one. It’s a goal saver with commbank where I get bonus interest every month I don’t withdrawn from it and add a minimum of $200. Last month they gave me an extra $6. But I have to yank money out of it to pay for a big car bill.

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raspberry sherbert

I currently do about $400/fortnight. I want to do $500 but have been struggling a bit with that extra $100 as I swear everything has gone up lately, especially groceries. I need to rejig the budget a bit.

 

 

We are saving the same amount for our house deposit. $100 a week but finding it hard to increase that extra bit we would like. I am sure groceries have increased since Christmas.

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71Cath

Wow. I am trying to save for my dream holiday to London. I've managed $250 in about 12 months. Something always goes wrong and I have to dip into it - hot water service blows up, car breaks down etc.

 

My current method is checking my account balance daily and transferring a small amount to a savings account to make the account balance even - this morning it was $2.59.

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~THE~MAGICIAN~

Wow. I am trying to save for my dream holiday to London. I've managed $250 in about 12 months. Something always goes wrong and I have to dip into it - hot water service blows up, car breaks down etc.

 

My current method is checking my account balance daily and transferring a small amount to a savings account to make the account balance even - this morning it was $2.59.

 

Keep chipping away. Every little bit helps. ING does it for me ... round up to the nearest $, and tranfers the extra to savings.

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raspberry sherbert

I agree,keep chipping away at saving. Every little bit helps. Setting small goals really helps keep me on track.

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Kallie88

I think I might do $25 a fortnight straight into the mortgage, it's small but it's something. Atm I'm trying to put $200 a fortnight into my savings but I keep neededing to dip into it for non regular expenses - replacing things etc.

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timtam92

I'm in. I think we are ok with saving, but can be much better. Last year I had to leave my job due to bullying, so we had a few months with no extra pay for me. then the job I got was less hours, so less dollars.

 

Currently we are putting an extra $30 per week into mortgage - I know it's not much, but I will gradually increase this. Before I left my job last year, we were putting in $250 extra per week - need to work back up.

 

We put $300 a week into an account for all our big bills - car insurance, rego, professional fees, other insurance etc. most of them are due in June/July so if we didn't save, we would be stuffed!

 

We put $70 per week into a holiday fund, $20 per week into a "fun" account (hubby requested this - for things to do on the weekend etc) and $10 per week into an account for our son - we have done this since the week he was born - plan to give it to him when he is 21.

 

My main problem is trying to cut the spending. I have cut out some extra's, but it's hard! I'm doing it slowly and it seems to be working. I now think about going to the big shopping centres unless I actually need to, as I know I will just spend.

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Chaotic Pogo

Timtam the Buying less rubbish thread is great for slowing spending - just reading along has slowed mine considerably, at least on clothing

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