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VVV

Savings Budget

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VVV

Just wondering how you manage to save? Do you budget the amount and put that aside each week or month? Or do you put aside what’s left at the end of a particular period? Do you put savings into another account or offset account or do you just leave it in an account that can be spent from?

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CrankyM

I have set amount that comes out of each pay (currently 400/fortnight). It goes into a separate account that accumulates "bonus" interest. Not that that is very much at the moment. It can be transferred back to my everyday account with no issues, though unless I replace that amount +200 I don't get the bonus interest for that month. Also 2 transactions a month are free, more will get a fee deducted.

 

Also if I happen to have money left over in the account the night before payday I transfer that remaining amount.

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Ivy Ivy

When I first started working professionally (early 20's) a certain amount was automatically deducted from my account each month and funnelled into shares. I never saw it. I all but forgot about it except was reminded at tax time. It slowly accumulated and many years later was a substantial amount and became my 1st house deposit. Enforced saving method; worked for me.

 

A few years ago I had an eye-wateringly enormous sudden unexpected debt I had to pay quickly (months). To save for it, for a short period, I stopped buying anything at all that was unessential. Just pared spending down to only what we absolutely needed.

 

I liked the challenge actually. But I only liked it because it was new, and different. I was fortunate because we were still able to buy essentials, and be safe and comfortable (i.e. not evicted, or unable to meet health costs or anything terrifying).

 

So I don't know your particular circumstances or timeline, but those 2 methods worked really well for me.

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BornToLove

We pay ourselves first. So we both have a set amount that gets funnelled into the savings account (both of our employers let us split our pay between two accounts so it never hits our everyday account).

 

Anything that’s left in the everyday account a day or two before pay day also gets shifted to savings. Sometimes it’s $5 or it could be $500, it just depends on the week.

 

We try to set saving goals regularly which helps keep us on track. If we don’t have something we are saving towards, we will start dipping into savings on things we don’t really need or could be better spent elsewhere.

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Crazyone26989
Posted (edited)

15% of our take home pay automatically goes into a saving account. I can easily transfer it back if necessary but if we do then it must be paid back to the savings through cutting back elsewhere over time. We used to save 30% of our take home pay when I was full time but we had to bring it down for me to work part time.

Edited by Crazyone26989

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FeralZombieMum
Posted (edited)

A set amount gets taken out pay period, and put into a "savings" account - which is an offset account.

 

If we're saving for something specific (eg house deposit), we'll increase the savings and try to spend less.

 

This simple way works well for us, as it's just set and forget.

 

The very first time we became serious about saving for a house deposit, DH took it to the extreme, with tracking our spending down to the last cent.

 

That only lasted a couple of weeks - he drove me batty every night, with insisting I give him a detailed list of my spending for that day. It stopped after I blasted him for taking all my change - I went to pay for parking in town, and DH had cleared the coins from my car and my purse. I was not impressed.

Edited by FeralZombieMum
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nom_de_plume

We pay ourselves first. So we both have a set amount that gets funnelled into the savings account (both of our employers let us split our pay between two accounts so it never hits our everyday account).

 

Anything that’s left in the everyday account a day or two before pay day also gets shifted to savings. Sometimes it’s $5 or it could be $500, it just depends on the week.

 

We try to set saving goals regularly which helps keep us on track. If we don’t have something we are saving towards, we will start dipping into savings on things we don’t really need or could be better spent elsewhere.

 

This is the same as us.

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Silverstreak

I pay $150 a month into savings: $50 for rent fortnight and $100 for non rent fortnight. I transfer it into a savings account which I can hide from view and so far it's worked well. Every now and then I update DH with the balance and I've shown him how to access it in case of an emergency. I pay ourselves first, before paying any bills.

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Sharalanda

Per fortnight we save $250 dispersed into a few different accounts. We also do the weekly dollar challenge so put away a dollar for every week of the year I.e. week 1 put $1 away, $2 for week 2 and so on. Surprisingly it adds up quickly! I will also look at my account every couple of days and round down to the the nearest $10 and transfer that to savings. Also the night before payday any money leftover in the everyday account goes to savings.

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Aughra

I transfer a set amount per month to a savings account and will add any extra money at the end of the month.

 

I do the same for DS.

 

I have an annual budget and track my spending so I know I have everything covered.

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SeaPrincess

We pay about 40% extra into the mortgage every fortnight. Our spending account is also an offset, so the interest we pay is reduced. I redraw if/when I need to, and we are about to get some house jobs done, which we will redraw for.

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notsoretro

I have set amount that comes out of each pay (currently 400/fortnight). It goes into a separate account that accumulates "bonus" interest. Not that that is very much at the moment. It can be transferred back to my everyday account with no issues, though unless I replace that amount +200 I don't get the bonus interest for that month. Also 2 transactions a month are free, more will get a fee deducted.

 

Also if I happen to have money left over in the account the night before payday I transfer that remaining amount.

That sounds like my CBA Goal saver account used to be, now it's no withdrawals.....

 

I don't have a mortgage or rent to pay and send my (quite low compared to the "how much do you spend thread") pay three ways. Approx 38% for fortnightly groceries and personal expenses, 31% each to savings and bills. I will draw from my bills account for things like hair appointments or Costco trips.

 

Like CrankyM I also transfer any balance remaining in my everyday account at the end of the fortnight to savings.

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-Emissary-
Posted (edited)

When we get paid, I pay off all our bills for the month then move the money into the offset. The mortgage repayment and a few direct debit gets paid out of there. It then remains largely untouched, essentially becoming our saving account.

 

The majority of our spend is on the credit card which gets paid at the end of the month in full. Our saving every month fluctuates depending on how much we spend on the credit card (it usually only varies when we have insurances due).

 

I have a loose annual budget so I know how much I expect us to save by the end of the year based on our spend.

Edited by -Emissary-

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just roses

Our automatic mortgage payment is triple the minimum repayment (of a not-very-big mortgage) and comes out of our account the day after payday. Our redraw is our savings.

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Mooples

My part time salary goes into a seperate long term savings account. Dh’s much larger pay goes into the main offset account. Everything gets paid for out of the offset account so some months extra is saved, other months we use a bit of the extra. It goes up and down. So we kind of do a bit of both.

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AllyK81

We put everything we earn in to an offset account. Everything we buy is on credit card. Credit card paid off every month and whatever we don't spend is 'savings'.

 

We are reasonably high income earners so we don't really need to watch what we spend but sometimes we will go through a conscious 'knuckle down' period and cut out as much discretionary spending as we can. We did that in the last 12 months and managed to save $100k. We were pretty surprised at how much we could tighten up without feeling like we were missing out on much.

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onetrick

We just kind of spend as little as possible most of the time. I'm not great at actual set budgets but I try to look at our spending and reduce where we can while still staying happy.

I reviewed our mortgage a few months ago and that saved a fair bit, I review insurances and things every couple of years (should do it every year but I forget...), and basically dont buy anything we dont need. We also purchased a house that we could afford on one wage so that we wouldnt stress when we had kids. Could have purchased a bigger house (and hadn't regretted the choice until now being stuck inside for months...) but chose to spend on other things instead.

So I guess with us it's not so much savings as in an account but reducing the general spending?

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