Save-a-quid-or-2 thread

[TheAnimus]

Minimize your borrowing costs.

Having £600 sitting in a savings account for a rainy day is all well and good, but if you're running an overdraft you're very likely to be paying more in interest charges on that than you are earning in the savings account.... so use the savings to reduce the debt you're paying interest on. If the rainy day comes then use your overdraft if you have to.

Now i'm not so sure about this one.

First off most people can get an intrest free overdraft facility provided you get back into the black each month. I've actually got ony thats my gross monthly, rather than net (stupid, stupid, stupid). In which case defo keep in the savings.

Now if you find yourself up smelly creak without a paddle, odds are your bank won't want to lend you money. When you need to borrow money, your a bad credit risk, when you don't need to your a good risk and banks fall overthemselfs trying to lend you money.

The reason i mention this is you might find that you can't get an overdraft when you need one. NEVER count on it been there.

[Nick]

But that's the point... using your savings to get out of your overdraft improves your credit rating as it reduces the % of borrowing.

There's no bank I know of that will remove an overdraft facility just because you're not using it. Being in credit all the time actually makes you a more attractive proposition for gicing an overdraft to.

The whole point of my post was to look at what you can do with the funds you have available and specifically not borrow any more to buy a way out.

And, as you say, an overdraft is only free if you bring it back into the black before month end... so surely using savings, if you have to, to bring the account back in line is better than being charged?

And yeah, high risk, long term savings offer a good return, but after seeing all my so-called 'managed' investments perform like crap, I'd only ever stick money into a tracker investment... especially as, according to Which, only FIVE fund managers in the UK managed to outperform a computer basing its investments on tracking just behind market trends...

[SiM]

That's not my understanding, as long as the engine is running it will charge the car battery if the battery is full then the "charging energy" is wasted - if you drive does the idle speed on your engine go up when you put the full beam on. (But put the air con on, then the idle speed on my motor goes up)

hmmm... I wouldn't have thought so... where is it wasted? it has to go somewhere?

anyone can explain this further?

[moogle]

when you're idling and the battery is full it's not used for anything except for keeping the engine running. but doesn't the charging decrease your mpg and therefore cost you?

[Nick]

Ok, in very rough layman's terms:

There's a sensor in the alternator/battery loop that measures how well charged the battery is, (don't ask me how, probably by taking a reading across the terminals or something...) anyway, this cuts off the supply from the alternator when the battery is charged, basically creating an open circuit in the battery/alternator loop.

You alternator will still be supplying electricity to run the engine and car electrics, it just won't be charging the battery.

How do I know this? Because when that sensor breaks, it'll stay in the state it was when broken... so mine broke when it was open and my battery didn't get charged. But there was no battery fail light on the dash as the alternator was still supplying current... took the garage two visits to figure out it wasn't a faulty battery or a dodgy alternator but one little relay.

[TheAnimus]

And yeah, high risk, long term savings offer a good return, but after seeing all my so-called 'managed' investments perform like crap, I'd only ever stick money into a tracker investment... especially as, according to Which, only FIVE fund managers in the UK managed to outperform a computer basing its investments on tracking just behind market trends...

Well thats a damned lie!
Look at the http://www.hedgefundintelligence.com/ awards (subscription required)

The reason i say using an overdraft is ok, is provided you go into the black.

I often hit the red to about 3k, as my mortgage, and most bills go out before i'm paid. Its interest free money, that allows me too keep my savings in much better areas. If there was a problem i've got some instant access savings getting a measly 8% (promotional, then loose CGT ) rate. The rest is tucked away in more long term saving.

Doing it this way my bank see me as a model customer, offering me an overdraft to 5k interest free! If i just cleared it completely and never used it, it would be slowly removed. The same way someone who's earning a lot of money, who's never had a credit card when first applying will get a low credit limit. They like to look before they leap.

[greenalien]

Try the cheap supermarkets - Aldi and Lidl - and look out for street markets for cheap veggies. If you have a nearby farmers market, check that out - usually good for eggs!. Reduce your meat consumption and eat more veggies/pulses instead. Plan your vehicle use in advance so you combine as much as possible - e.g. go to the shops on the way home from work, rather than as a separate journey. Entertain at home rather than use pubs / restaurants. Be rigorous in turning unused electrical items off at the socket - especially true for PCs. Get your house properly insulated now before the cold weather arrives - lots of grants available. It's also a good time to get your central heating boiler serviced. Once the weather does get colder, turn the thermostat down a couple of degrees and wear a jumper. Grow your own veg - even if it's just cress!

[Zak33]

damn good thread

I'm getting tighter by the day

[Salazaar]

And finally
Don't be at all afraid to go into your bank and talk to them about how to manage your finances. Believe me, they'll damn well appreciate you going to them and asking for help rather than sending you snotty letters. You can't ignore debt and the only way to tackle it is to man-up, admit you're were a bloody fool and then just get on with dealing with it.

Don't be afraid to ditch your bank completely.

I just ditched HSBC in favour of The Co-operative (ethical banking FTW) and got better rates on my current account, my savings account and my credit card. Makes me wonder why I stuck with HSBC for so long before!

[j.o.s.h.1408]

My top tips to save money:



Smuggle food into the cinema rather than paying their stupid prices (Chocolate + Movies + Women = Profit)

i've done that since i was small. always bought my own popcorn and drink into the cinema

[Splash]

I've cut out getting the bus to work, and I now cycle the 6 miles each way. Also has the benefits that I get fitter and lose weight, plus it's about 15-20 mins quicker so I get more time in bed.

I think Tiggs mentioned the age old "cook for 4, then freeze half of it" (well, there's me and the missus and she complains if I don't feed her)

dumping the copper, 5 and 10p pieces in a Glenfiddich tin and emptying it every 3 months or so - it's amazing how much I save.

[Behemoth]

I've cut out getting the bus to work, and I now cycle the 6 miles each way. Also has the benefits that I get fitter and lose weight, plus it's about 15-20 mins quicker so I get more time in bed.

I think Tiggs mentioned the age old "cook for 4, then freeze half of it" (well, there's me and the missus and she complains if I don't feed her)

dumping the copper, 5 and 10p pieces in a Glenfiddich tin and emptying it every 3 months or so - it's amazing how much I save.

I've got a years worth of change in half a coke bottle lol no idea how much is in there at the moment, when it gets full then I'll get it all counted up and start getting it changed up.

[psychy]

I'm driving incredibly slowly in as high a gear as i can recently. Don't race off at the traffic lights anymore.
Recently done 200miles in a quarter of a tank as i took my time and drove at 50-55mph.
Then on the way back, it was late and i wanted sleep so bombed it on the return. Took a WHOLE tank!!!

So....moral of story?


WALK.

[menthel]

Sit down and plan your meals for the week and then internet shop!

We always spend less that way, often a good £20, even if we shop with ocado!

Also keep everything paid off and don't buy stuff you don't need! I have now been weaned off my technology buying addiction. That is until we have moved into the new house once its done up!

[SmileyUK]

I can't believe how expensive certain meats like chicken have got....

i was saying the same thing the other day, chicken used to be the the cheap meat, but now it costs the same if not more than pork round here.

our tip is we often pop to tescos to check what meats are reduced, if you dont mind being flexible you generally pay half the price you normally would. An added bonus if you will is that sometimes you try new things

[Nick]

The thing is, saving money doesn't necessarily mean being a miser and scrimping on every penny, it's about being sensible and looking for the costs you take for granted or even daft things like running boiler to heat hot water you're not actually using.

Personally, I'm aiming at the things that don't make an much, if any, impact on our lives... so the hot water is run once now, in the evening. The cylinder is well lagged and that means there's enough to bathe the kids and for me and the missus to have a shower in the morning.

We don't run the dishwasher unless it's chock full and even then I'll wash up mugs and plates... it's only once the family meal is over that we cram everything in and run it.

Cat food: The kitties are all on the own-brand store stuff... not the really cheap stuff as the fickle buggers won't touch it but they're not getting the super expensive stuff from the vets either... especially when all they seem to like to do at the moment is chomp down on a mouse and leave half by the back door all the damn time.

For meat, probably one of the most expensive items you can buy, try going to the local market and hunting out the butcher's van. You'll find he has some bargains going and, once you get to know him, you can start haggling a LITTLE, don't push it too much or you'll wind him up.

I bought 20 large chicken breasts for £15, three bone-in legs of lamb for £10, 5kg beef mince for £10 and a half a strip of sirloin for another £10... then he threw in 20 Lincolnshire sausages for free. All that stuff is wrapped up and sitting in the freezer meaning we don't need meat for at least three weeks now.

Best time to go is near the end of the day... ok, you get less choice but he'll sell off what's there nice and cheap. Same goes for the veg men... they'll sell at a tiny profit if it means not having to load it up on the van... and a full sack of spuds will quite happily keep somewhere cool like the garage.