The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: poorjoy on September 05, 2015, 06:46:25 AM
-
I earn £20k per year, around £1200 net income per month and my monthly essential bills equal £800.
Since I live on my own and my living costs are already a large portion of my earnings, I'm finding it difficult not to use the money I should be saving as the month goes on. I deposit £400 into a savings account and used to always have 0 by the months end.
The only way I have found to work to control myself is to just buy pm's every month. I now have 200 ounces of silver but need a way of keeping saved money out of my reach
-
Perhaps you should save less.
I find that if I set aside too much in savings, I end up needing it and have to withdraw from my savings. Doing it once for something truly important makes doing it for not-important stuff too easy, like, "oh, it's just ten dollars for a kindle book".
But if you set aside some into an emergency fund that you can use for important stuff, and set the rest into an investment account that you really won't touch, then you can raid your emergency savings as needed, but you'll have the psychological barrier to not touching the one that you really don't ever touch.
For extra incentive, make it an IRA or a roth IRA so that you'll be penalized if you do take it out. Put it in Vanguard, not silver!
-
Sounds like you need a 30-day notice ISA. I had one at Nationwide a while ago. 30 days notice to take it out means you can't jut spend it, and the ISA means you lose the tax benefits if you do. Also, I second what the poster said above about saving less. If you're saving £400 now, try putting £100/month into the account. Anything left over at the end gets put in too. Every three months, up the amount by £50 until it hurts. Then stop.
-
Sounds like the "pay your self first" strategy is tailor-made for someone like you. :)