# Savings



## EAN8 (Apr 15, 2011)

I am 18 years old and I am a apprentice mechanic so money is not great. I own my own car so insurance is due in August and I also have my phone bill to pay for and I also pay £20 a week on tools but I am starting to get worried about my money due to my car insurance is due in just 14 weeks time so I was wanting to know what is a good amount of money to have in the bank at all times for a 18 year old?


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## MEH4N (Mar 15, 2012)

depends on your monthly outgoings really. Keep a couple of hundred over your outgoings youve budgeted for the month ahead.


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## willwander (Nov 30, 2012)

Figure out your monthly spending and any annual bills like your insurance, budget for these and don't spend beyond your means!

It's good to have savings as safety net, as much as possible! maybe a months or twos salary, if you can afford it!


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## The Cueball (Feb 8, 2007)

I've always worked towards at least 6 months net salary in my saving account...

:thumb:


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## STUOOBY (Dec 26, 2012)

thats what i do. im 25 and try keep 3 months wages , and keep it growing. but while having a life aswell. handy having it there as a backup if the worst happened


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## Mark Chandler (Nov 7, 2011)

Most important, NO CREDIT CARDS, been there and done that, I am now paying off my daughters credit card bill, something she took out at 18 as an interest free loan 

At 18 and planning money in the bank is admirable, at 18 I used to empty my small change into a big jar which soon adds up and you do not really notice the cost.

If you want to save then the actual number you will achieve will probably be 1/2 that you estimate, it's important to make sure you keep enough money to enjoy yourself.

A good cushion would really be enough to cover 1 months forced expenditure, so if something happens you can afford a few weeks off work so work, rent, food and monthly commitments. As you get older this needs to grow with your responsibilities.


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## rob_vrs (Jan 4, 2012)

I have always just saved monthly so for example: 

Year 1 - insurance £1250 

So devided that by 12 and saved that monthly so then next year I had the money for insurance it had dropped to £800 leaving me with £450 in the bank and now i just do that at 22 no i have no worries.

I save £20 a month for maintenance on car as I have a service plan. My road tax i save monthly also.

I have a spreadsheet that i adjust yearly which has all my outgoings on and i know exactly what things are going cost and don't kid myself.

It can be seen as been anal but compared to my mates I never worry about my finances. I literally finished my apprenticeship last week so know the feeling of been on low wages. 

I also have a credit card, however treat it as a debit card. I get point for what i spend on it so basically i get free money as i put the money to one side when iv spent on the credit card and when the bill comes i pay it off, win win, increase credit score and free £10 vouchers. 

Hope this helps.

Rob


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## S63 (Jan 5, 2007)

Paying large annual bills like insurance maybe easier to pay off monthly by direct debit.


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## rob_vrs (Jan 4, 2012)

S63 said:


> Paying large annual bills like insurance maybe easier to pay off monthly by direct debit.


Save it monthly is better with insurance die to the massive extra cost for paying monthly


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## STUOOBY (Dec 26, 2012)

rob_vrs said:


> I have always just saved monthly so for example:
> 
> Year 1 - insurance £1250
> 
> ...


pretty much all my mates bar one , are always skint. not a penny to there name with 2 weeks to pay day to go every month. i dont understand how they can live like that. i do the same as you. but i only do it for the 2 months before insurance is due , so make pocket extra tight so no buying stuff i dont need. same for road tax. road tax of £475 isnt the best. lol. but planning ahead and keeping money is the best idea. if only everybody tried it. and im only 25.


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## STUOOBY (Dec 26, 2012)

rob_vrs said:


> Save it monthly is better with insurance die to the massive extra cost for paying monthly


exactly. save a bomb. and do that with everything. it all adds up.


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## Rayner (Aug 16, 2012)

Savings? What are these? 

As long as its above 0 at the end of the month I'm happy.


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## DMH-01 (Mar 29, 2011)

The Cueball said:


> I've always worked towards at least 6 months net salary in my saving account...
> 
> :thumb:


+ 1.



S63 said:


> Paying large annual bills like insurance maybe easier to pay off monthly by direct debit.


I've always paid insurance, warranty etc. off in one hit but was curious to see how much it worked out monthly. For a £1050 yearly insurance quote the monthly payments totalled just over £1800. That's crazy.


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## rob_vrs (Jan 4, 2012)

STUOOBY said:


> pretty much all my mates bar one , are always skint. not a penny to there name with 2 weeks to pay day to go every month. i dont understand how they can live like that. i do the same as you. but i only do it for the 2 months before insurance is due , so make pocket extra tight so no buying stuff i dont need. same for road tax. road tax of £475 isnt the best. lol. but planning ahead and keeping money is the best idea. if only everybody tried it. and im only 25.


Exactly mate, all blokes at work are same too, they £30k+ a year minimum, and have no money, i appreciate how much house cost but if they did the same with a house I'm sure they would have a much better lifestyle.

Each to their own, i have no debt apart from my car which i got 2 year finance for and pay less than £190 a month so hardly anything as i don't have services to worry about or any faults with the car.


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## Buck (Jan 16, 2008)

I'm with Cuey - 6 months net saved is a good buffer with no less than 3 months.

Obviously, it isn't going to be quick to get to this but being disciplined and saving little and often will soon get you there.


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## S63 (Jan 5, 2007)

Buck said:


> I'm with Cuey - 6 months net saved is a good buffer with no less than 3 months.
> 
> Obviously, it isn't going to be quick to get to this but being disciplined and saving little and often will soon get you there.


Not going to be quick? I cannot imagine the wages of an 18 year old apprentice would allow any scope for saving that sort of money.


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## S63 (Jan 5, 2007)

DMH-01 said:


> + 1.
> 
> I've always paid insurance, warranty etc. off in one hit but was curious to see how much it worked out monthly. For a £1050 yearly insurance quote the monthly payments totalled just over £1800. That's crazy.


Goodness, never realised companies charge those sort of rates, crazy? Ought to be criminal.


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## Keir (Aug 31, 2010)

Maybe buying shares?

Last time I checked if the shares I've got, are the price they are now(been the same since FEB 2013) in Nov 2014 I'll get over £5K back

I pay £56 in each month, for 3 years


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## Titanium Htail (Mar 24, 2012)

Save what you can enjoy being 18 have some fun or save sufficient until you are confident, a good plan always helps, that current extra will soon be used in life itself. 
That aspiration to be financially astute is a great objective for the future, good luck.

Shares in DW we all have some here ! 

John THt.


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## EAN8 (Apr 15, 2011)

Thanks for the advice some Good ideas I am trying to aim for 6 months savings I will be at 4 months in September so Only 2 months more i I think I will be ok but 4 months for me is good 


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## T.D.K (Mar 16, 2011)

Minimum £8,000 in my savings, I do this as a 'future' fund or just in case I lost my job. Either way, a safety net is a really good idea.

I cannot imagine any worse than losing your job and having no money to fall back on.

On the other side of the spectrum, people I know spend all their wages before the next pay day and have to borrow money off people because they spend money on *non* essentials.


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