Savings, how do people manage them

[ThirdTimeIucky]

How do people manage their savings? Since becoming a single Mum I have become a bit obsessive about saving. I'm currently working part time, so it's even more tight. We manage but I want to make sure I'm doing the best thing. I'd love to know how people manage their savings. I'm not asking how much people save though, as people's circumstances will always vary hugely.

Currently I have a ISA, with a reasonable amount in, after the sale of the family home. I don't really know what is best to do with that money, so it's just sat their. I didn't realise we'd get so much from the sale of our house when I got a mortgage agreement for my new home.

I have an 'oh shit' account, which I put the most in, for when something happens to the car, or to pay for maintenance on the car or house.

I have a fun savings account for holidays, days out, etc. I also have a child's savings account for my daughter.

Next month I'm planning on opening a Christmas and birthdays account, and an account to use for school stuff for my daughter, such as uniforms and school trips, photos, or anything else above the normal costs.

At the start of each month I skim money out of my account, down to a certain amount and distribute amongst each, depending on the importance, more in the oh shit account, less in the fun account. Then each week I have very small direct Debits going into each.

All of the accounts are just random accounts in my usual bank, because it's easier to manage online.

Am I missing anything, can I do more? Do people have any tips? Is it worth using some of the sum left over from my house sale, to overpay the mortgage?

We have a financial advisor. We have meetings twice a year, she is acutally working with DH's company for their pension scheme but we can book her privately as well.

Best investion ever. We talked about long-term goals, pension, requirements, saving requirements and also financial securities like insurances. It helped to bring lots of little bits and pieces together in a managed account for long-term incl. DD's pot for uni. I still deal with savings accounts for short term myself.

The initial appointment wasn't cheap but definitely worth it. Now she gets a fee from the managed account but that's because we wanted to keep it together with DH's pension scheme, we could also have opted for a different set-up.

It's worth it.

I think you could do a similar thing with an account with someone like Starling that lets you set up ‘Spaces’ within the account for different things, so all the money is in one account but separated into different categories. Would also highly recommend you get into some financial planning, thinking about your plans for paying off your mortgage, retirement investing, insurances (life, income protection) and for your daughters future. Mama Fur Fur, Meaningful Money, The Humble Penny, and Money to The Masses all have YouTube channels/podcasts that go into ways of making your money work for you including saving and investing for children and whether to pay off your mortgage or not that will help you make a good plan.

I have a current account, an account dedicated to holidays and then a Christmas account I started in November 2021 as I just want to be able to say 'there is enough to cover Christmas!' this year instead of worrying about it.

Both the holiday and christmas accounts have a standing order set up on the same day as I get paid, so it goes out without me even seeing it. I also make choices about savings here and there so i can top them up. I used to buy 3 lifestyle magazines a month and now do not so I send the circa £15.00 a month to the Christmas account. I am doing dry January and am sending the money I would have spent on wine to my holiday account.

FWIW I would think it is worth overpaying on the mortgage if you can. We will pay off ours probably within the next 18 months (early) and I am really looking forward to that. My plan is to then enjoy a month or two of mortgage money and then to save the mortgage money probably in shares.

Everything broken down into different pots.

With a small windfall it would be devided up into all the separate pots.
Every month we put something into Xmas pot, holiday pot, bday pot.

Then long term saving which is in a stocks and shares isa.
Then emergency saving which is in joint account.
Then tax money I need to keep separate and car tax goes into premium bonds..

Also have separate rolling pots for dc tutor /clubs and another for dc clothes and school costs.

I know exactly what we have to spend on what which is nice when it comes to "fun"!! Ie don't feel guilty using that money for the famous mumsnet hot chocolate or ice cream from a van () when out because that money is soley for fun and it's not robing anything else.

It took a long time to get all these pots going esp when had no money and I was savjng £8 a month into actual metal tins! But the habit and Principle has stayed... Now I'm working again and dh earning more.

Any money dh now has goes into all these pots spilt up.

For main saving stock and shares isa mainly with vanguard funds, one life stragety and several index trackers. Currently about 30% growth.

Can I ask how much the financial advisor costs?

Ice coffee milk shake.

We also pay a little over payment on mortgage however...

Do remember the power of time and compounding with shares... The £100 you pay down each month would be negligible compared to what £100 per month would be worth put into index trackers in stocks and shares isa.

We do both...

Our cash isa which I only keep as a way of separating a small inheritance from dc is at 1%.

We got about £140 interest this year.

In the stocks and shares isa mostly mainly steady index funds and trackers.. About 25%
Thats several thousand pounds it's grown by.

Index trackers op.

Jack bogle /vanguard.

Morning star /Trust net.

This is money podcast.

Boring money blog.

Martin Lewis websites.

Reddit sub forum on personal finance.

I use up my ISA allowance each year with a stocks and shares ISA. I have a Barclays account with many different pots that I name Christmas, clothes, holidays and use those for short term saving.

Wow. OK I really am clueless about a lot of this stuff so thank you. It's all useful stuff.