Savings .. now then!
How does it happen with days like these? Its like some voodoo I am not familiar with any more!
Inflation is on the rise (yawn) , mortgage rates have crippled us (boo) , Domestic living is still shooting up (shock) and two pints will cost you a tenner (piss off)
WHATS all that about?
How are we meant to save?
Me and my Mrs recently brought a house, you know, the next step forward and all that but I can’t help but feel we may have seized this opportunity at the wrong time and maybe, just maybe should have waited a little bit longer.
I always thought the rates may start shrinking again (I could be wrong) and I wouldn’t of had to use every penny I had to pay off certain things to meet the mortgage criteria.
Our overall outgoings have now tripled and I literally can’t recover, there’s no rainy-day fund (which I loved to have) or safety net (which I have always thought was important for them just in case moments)
So how do I get it back?
I’m in the process of telling EE their phone contract is now too high and I won’t be renewing it so that should release an extra 80 quid but what happens next, where does that 80 quid go?
Savings account? give it to her indoors or Stick it under mattress?
So, what is a savings account?
A savings account is simply an account for you to put money in and earn interest.
Savings interest is paid tax-free and most won't pay any tax on it at all. Basic-rate taxpayers can earn £1,000/year tax-free and higher-rate taxpayers £500. Full info on this allowance and how it works can be found in this Personal savings allowance guide.
As rates have risen, you'd need around £20,000 in easy-access savings at the best rates, or £16,250 in top fixed rates to reach this, as a basic-rate taxpayer. If that's you, it's worth considering a cash ISA as interest on these is always tax-free (and doesn't count towards your personal savings allowance).
Well that doesn't help me but it might help you, if you want to explore further here are some of the top saving's accounts according to compare the market.
Giving money to your better half.
Men and Women have been giving money to their better half years to save and for me the jury is still out on this one.
Firstly, where are they sticking it? Secondly, what’s the interest rate? Thirdly, how much access do you have to it and last but not least but my favorite will it have to be mutually agreed on the reason to withdraw the funds or is it simply going into their bank to make their balance look bigger (cynical yes, but it does happen)
I've never been comfortable with this and I love my Mrs to death but there is a looming thought that there might a few more than usual amazon packages turning up on my door step or Yankee candles on the mantle piece (she has a thing for candles) oh and apparently WE brought them
Here are five reasons you shouldn’t give money to your partner according to Linked in and I Like them
The Mattress.
Money in the Mattress, its not just a great song by Salvatore Ganacci its an actual thing and people have been doing it for years!!
There are many reasons why we might of heard someone say they want to stash cash under their mattress such as having money readily available, being able to make a purchase with cash and not having to worry about any banking software going wrong (mentioning no names..N&$W£5T) and some may simply like knowing where all their cash is all the time.
However, if somebody got to learn about your secret little safety net and managed to do a number on you then the total amount paid out but by your insurance company would be the grand total of one thousand pound regardless of the amount you stashed away..
SAY WHAT???
Obviously this doesn’t apply to any Mob or Cartel that are currently burying their cash else where in a secret location, that would be a completely different blog subject and their way does work for them until they get caught or have to live in an underground tunnel but the message is clear and from what i can see is the message is NO, the mattress isn’t the best place for your savings that's IF you can save but here are some pros and cons according to savings advice just in case you want to consider it?