I'm in my final year of university and working part-time. After living costs, tuition etc. I save a small amount - what should I do with it?
Saving rates are appalling at the moment so I'm not sure what to do with my £50 monthly savings. Keeping the money in my current account is actually the best option as I get 5% interest a month for the first year with Alliance and Leicester, but it's hard to stop myself spending it! Any guidance would be appreciated.
You should keep enough savings so that you could last 6 months without a job. If you are not strong willed enough to not touch the money in a savings account, get a savings product that penalises you for early withdrawl. | 11.12.10 @ 20:38
First of all, great job in actually having some money left over. Many students struggle with having anything after their outgoings.
GE Money found that 11% of UK students are unsure about their personal financial status. In your situation, I would setup a student budget. Start by listing your weekly and monthly outgoings and personal income. Once you have understand where all your money is going you can managing your personal finances more closely.
| 12.11.10 @ 16:26
You really do need to start a good savings habit now and learn the discipline of not dipping into your savings. otherwise all the hard work so far will bear little reward in the future when the things you want to spend on will require you to have saved a larger amount.
you might find it easier to set up a savings account that isnt so reachable and therefore remove the temptation, open it with another bank away from your current account so that its not so easy to transfer money across or its a bit more tricky to make sudden withdrawals.
your will power will repay you in the future especially if you have plans to buy your own home as you will need at least a 10% deposit and £2000-3000 for costs! | 12.22.10 @ 22:40