To ask how people built up savings of £5k to £15k?

[ThatOpenPoet]

For those who’ve managed to build up savings of around £5k, £10k, £15k - how did you actually do it in practice? Was it consistent monthly saving, cutting back, a one-off boost or a mix of things?

I would like to hear what realistically worked for people rather than just general advice.

Thank you.

Forensic looks at my finances month to month to identify overspends, plan how to reduce that cost and then save the difference

Save any money that came in outside of usual salary i.e. bonus at work

Set up an amount to go directly to savings on pay day like a bill

But ultimately the amount I could save has increased as I've gone for promotions, so I save 75% of whatever is new additional income, allowing myself the 25% as a motivator to see the benefit of the salary increase.

A mix, when we were younger any bonus money (worked in a commission role) was spent on treats. Now at additional bonus money is saved, gifts etc. We cut back in order to focus on saving.

I start a savings account about sieven years ago when I won a couple of hundred pounds on the lottery. Then, during COVID, because I wasn't going out for coffee or lunch from work, I began to save any leftovers at the end of the month. My current account does roundups, so sometimes I get a couple of pounds a day going into savings. Any birthday or Christmas money goes straight in there. Biggest boost though, happened when my payday at work changed. I didn't want the hassle of changing all my direct debits and standing orders, so now, on payday, I transfer my entire salary into the savings account. Then, on my old payday, I transfer back what I need to cover my regular payments. That adds about £150 a month. Any extra spending, I just transfer into my current account as and when I need it. And if course, I get interest on the savings every month. From opening the account with £200, todays balance is just over £10000. It's frightening to think that I have managed to save that amount with very little effort and that without that inii£200, I would probably have just spent that money with very little to show for it.

We opened another current account.
Account A was for the bills and an amount for savings.
Account B was for spending which included food shopping.
Everything was rounded up. The evening before payday if there was anything left even if it was just a few pennies that was also transferred to the savings account.

For me it was share save schemes at work, opted to put £200 away a month and after three years I had shares worth c£20k.

Otherwise it’s just putting money away each month regularly. I used to work in consultancy and we got big bonuses so that helped too. I earn more now but smaller bonuses and I find it harder to save regularly than one off amounts.

I started when I was in my 20s, once I had my first job… £250 on payday into an ISA (at the time the limit was £3000 per year). When I got a pay increase… more into savings rather than increase in living standards… however, that was before kids and crazy rents…

This is also what I have done.
Any pay rises go straight into savings too.

Consistent saving, looking for quality but cheaper items

(bought a Skoda instead of an Audi.). Worked overtime and/or second job. Didn’t waste money on things that maybe nice to have, but aren’t needed.

I put money into my savings immediately I get paid. If I think I'm going to buy say a coffee and then talk myself out of it, I put that amount into my savings. I empty all my change into different money boxes depending on the denomination and then every few months count it, bag it, pay it into my account and then put it in savings. I am moving house soon so completely decluttering and selling on vinted and then everytime I hit £100 I withdraw and stick it in my savings so I get a bit of interest on it.

Consistent monthly saving for us

Save every month as soon as you get paid. When you get a pay rise save as much of the extra money as you can rather than allowing lifestyle creep.

I save whatever is left each month.

I never got on with the putting money away on payday method. I totally understand why it works for many, but for me, psychologically that would give me carte blanche to spend everything that’s left over. Having the aim to save at the end of the month makes me more mindful of what I’m spending, usually leaving me with more than my target amount. I am more of a saver than a spender though, which probably helps!

The past few years I’ve also started saving a chunk of any pay increases I get. I don’t get much of a raise each year, but it’s amazing how quickly that adds up.

I went through all my outgoings and worked out what I needed to pay out every month. Then allocated a budget for general spending each month like haircuts, gifts, clothes etc. this general spending money is on a different bank card to my main current account so I can easily see what I have left for the month, and anything left on it at the end of the month gets moved into one of my pots eg holiday pot. And the gap gets invested consistently each month into my S&S ISA. At the minute this is £400 a month but I have been doing some extra hours in work recently and the extra money I earned has also been invested.

Yep, consistent monthly saving. Boring and simple but true.
I'm freelance, so I put aside the same percentage of every payment I receive.

I do a couple of smaller things too – I have 'round-up' on my bank account (Monzo, but I'm sure other banks do it too), and rotate which savings pot I save to every month or so (so longer-term savings, then the house improvements pot, then the haircut pot etc). Adds up surprisingly quickly.
And, I tend to buy lunch out (yes, I know, I've tried many times to get into making my own; it works for a while but doesn't stick) BUT when I do manage to make my own I put the equivalent money away. It's a good psychological boost when I see I've got enough for a nail polish or a cinema ticket or whatever.

I've saved 10% of everything I earmed since I wad 16yo, by standing order - pay yourself first.

When I get a payrise or promotion the standing order gets increased.

£100pm into a stocks and shares isa. It builds up fast.

Agreed and put savings in an ISA.

Created a budget, stuck to it. Paid my savings first. It can also be helpful if you automate it, and treat it like any other essential bill. If you wait to the end of the month, you’ll never have anything left.

DD straight into stocks and shares ISAs on first of every month.

use Cashback sites (Quidco and topcashback) and transfer whatever’s built up into savings accounts periodically.

my bank account rounds up and sends a few pence per transaction into DDs savings account.

stop spending mindlessly. Money saved from not buying another pair of jeans that I don’t need gets put away.

My house was full of clutter which I’ve sold on eBay, vinted, marketplace. Money goes into savings.

i had years of being stony broke when I was younger. I had 2 jobs just to pay the bills. That’s made me appreciate the security and comfort of saving rather than spending. As my career has progressed, I’ve been able to earn more which enables me to save.

I have a list of 13 direct debits with the dates on fridge including savings. For example;
1st Insurance £50
1st Water £45
12th Gas /electric £80
On pay day £50 to my savings [clothles etc]
£50 savings for general etc for household needs.[i.e decorating]
On pay day the £00 savings are taken out before anything else, as is food money, I use cash for that. As the month goes passed I cross off the debits as they leave my account. What is ever left over at the end of the month goes into the household savings. I don't drive so probably look at about £200 a month to save over all.

Do you have a workplace share purchase scheme. Mine is tax free (to a limit) and a percentage is matched by my employer. You can’t take them out for 5 years or else you’d have to pay the tax, but after that 5 year liability has gone you can sell them or leave them as they are.

It worked for me as I ended up not noticing I was paying it since it came out of my salary before tax. Ended up paying for a car for my son, new kitchen, new bathroom, and there is still enough for a full house deposit for my son. Both me and my husband do it, and we’ve got about 65k in there now, all without having to make an effort to save.

I did it when I was on a very low salary (less than 20k a year, so it felt like quite a bit at first, but now it’s almost insignificant because I just don’t consider that I have the money. I think it took maybe 2 years before I didn’t really notice it anymore.

IMHO the secret is to pay yourself first: when you get paid, put x% into savings straight away. Ideally an ISA so you aren’t as tempted to pull it back. Do that with any money coming in. Someone gives you a tenner? Save a quid. Sell something on eBay? Save the same %.

Consistent monthly saving. Watching every penny. No coffees out, no gym membership, no nail saloons, no expensive makeup, no takeaways, no subscriptions, no alcohol. Cook from scratch..

Why? You can have two 50k incomes and still receive child benefit? That’s plenty if you live in the right area and if you don’t go on expensive holidays

I have 3 accounts, bills, spending and saving as soon as I get paid a percentage goes in the bills account another percentage goes in savings and the rest is to spend throughout the month