Any geeks good at saving?

[lissy00]

Hi everyone,

I'm feeling like the thought of owning my own house is a long, long way off, but I keep plodding away with my savings nonetheless.

I've just transferred my last year's ISA and opened a new ISA for this year which I'm desperately trying to top up. So starting this month I am stepping up my savings to £300 a month.

Have already got some savings towards a deposit but mortgage companies won't look twice at me because I am self employed, only work part time and keep my own books:sad:

Just got me thinking if anyone else is saving for anything big and how much you put away each month?

And is there anyone out there who managed to get a mortgage on a low self employed income??

xx

 

[leannelily]

I used to be the worst at saving money ever!
But i started putting money away in different envelopes for different things with a target for each one!
Every other £10 or £20 i'd put away in a different envelope, then i got a safe for christmas and put them in so it was slightly harder to get into it!

Just an idea! Make a spending log, everything you buy in a day then look back at it and think, do i really need that? Just little things like that, then you know where your moneys going x

 

[missljw]

I'm also currently saving for a deposit on a house so I know the feeling!

I try and use my bank card to buy stuff rather than going and getting £20 or whatever out the cash machine cus once the money is out any change will get spent! Lol I keep a check of my bank online (got the app) so I know exactly how much I have. I transfer money every week/month to a savings account and if I ever have any spare I put it straight in there to stop me spending it!!

If I have change they go straight in a jar, it's amazing what it adds up to!

I went through a load of my clothes and shoes, DVDs and other bits I never wear or use and stuck them on eBay! Ended up earning a few quid from that too which helped even if only a little bit. More space in the house and more pennies, win win!

 

[missljw]

Oh and as for the self employed bit I'm worried too. I've read it's hard to get but luckily my partner is employed so hopefully it will be easier. If you've been doing it over 3 years then it's not too bad as you have a bit of proof. I've only just started out so will struggle with it I think!

 

[SerenityNailz]

I work in financial services - mortgages and insurance - as my main job and so long as you have three years SA302's showing sufficient income you should be able to get a mortgage- obviously there are other factors that are considered too such as your credit rating, number of children, outstanding debts etc etc.

Would it not be worth getting an account to prepare three years worth of accounts for you as this may help your case too?

Hth

x x

 

[Rachul123]

I work in financial services - mortgages and insurance - as my main job and so long as you have three years SA302's showing sufficient income you should be able to get a mortgage- obviously there are other factors that are considered too such as your credit rating, number of children, outstanding debts etc etc.

Would it not be worth getting an account to prepare three years worth of accounts for you as this may help your case too?

Hth

x x

What counts as sufficient income? Is it a certain percentage of the mortgage? Ive got another year to wait till Ive got my 3 years books :-( x

 

[Smee]

What counts as sufficient income? Is it a certain percentage of the mortgage? Ive got another year to wait till Ive got my 3 years books :-( x

Mortgages tend be given on an affordability basis these days rather than the old way which used to be 3 or 4 times your annual salary. So it's based on income less outgoings and other factors such as number of children, amount of deposit and your credit score.

Being self employed in itself isn't an issue as long as you have at least 2 years accounts and you don't have to use an accountant, SA302's are fine. One thing to bear in mind is that when accounts are prepared it tends to be on the basis of minimising earnings to reduce your tax bill but when it comes to applying for a mortgage, the amount you can borrow will be based on net profit (for sole traders/partnerships) or salary plus drawings (for Ltd companies).

 

[Bluerinse]

Hi everyone,

I'm feeling like the thought of owning my own house is a long, long way off, but I keep plodding away with my savings nonetheless.

I've just transferred my last year's ISA and opened a new ISA for this year which I'm desperately trying to top up. So starting this month I am stepping up my savings to £300 a month.

Have already got some savings towards a deposit but mortgage companies won't look twice at me because I am self employed, only work part time and keep my own books:sad:

Just got me thinking if anyone else is saving for anything big and how much you put away each month?

And is there anyone out there who managed to get a mortgage on a low self employed income??

xx

Why tanager it? Just keep it x

 

[SerenityNailz]

What counts as sufficient income? Is it a certain percentage of the mortgage? Ive got another year to wait till Ive got my 3 years books :-( x

As Smee said - lenders calculate your affordability and usually have a ceiling of x times your income that they will lend to. Have you spoken with a financial adviser? There are many fee free brokers out there who can give you some advice and pointers on things you can do prior to application and also give you an idea of what you can afford to borrow.

X

 

[lynn amber]

Got my mortgage before we both went self employed, but I think it can be done but harder to find and more expensive ( I could be wrong) Iv always been good a saving I have a isa and savings account, piggy bank and terimundi sell stuff on ebay car boot ect, I don't buy expensive clothes or have finance on a car ,
My dad is a compulsive gambler so we never had much as a child and nearly lost our house a fue time so have always been very careful with my pennys, debt just scare me a mortgage is the only debt I ever want to have :-D

Sent from my LT30p using SalonGeek

 

[Rachul123]

Thankyou both for your replies!
I briefly spoke to somebody at my bank and they did tell me to go back after my second year but I cant see that I will have made enough after calculating everything :-S
I put my prices up this month which has made a big difference already so this year will be better.
Am I better putting less expenses through then? I wasn't sure if it was on gross or net so thanks for that.
Also I have no children no debt and a fantastic credit rating. (Got addicted to littlewoods catalogue young-not now lol) x

 

[Smee]

Am I better putting less expenses through then? I wasn't sure if it was on gross or net so thanks for that.

Well ultimately the higher your net profit the more the bank will lend you so it may be worth taking the hit on a higher tax bill for a few years in order to be able to borrow the amount you want.

 

[SerenityNailz]

All lenders use slightly different calculations for income so I would definitely speak to a whole of market broker, before changing anything tax wise, who can advise you best on which lender and product will allow you to borrow what you need and will be able to give you comparative figures on different incomes.

Hth

x

 

[Rachul123]

Thanks guys x

 

[lissy00]

Someone asked in biz geek if anyone had a blog, which inspired me to start a blog on this subject. So it's called Savvy Saving.

Here it is Savvy Saving - Home

Obviously it's brand new, but I am going to update it with all my money saving tips and advice! Quite excited at the prospect. I actually get a little buzz of excitement whenever I get a discount code or cash back or special offer! Or resist buying something, that's a really good feeling.

I too cleared out a load of things on ebay when there was free listing over the bank holiday. A few things sold, not everything, but some. I'm going to do it again on the next bank hol as I'm pretty sure it will be free listing again. No point paying to list something if you can do it for free now is there!!

 

[Thiago]

I'm Saving to open my own salon.
I'm saving between 800-1200 monthly. But there are some months I can save more but not every so I'd say its between that. But I do work a lot. And do a lot of Brazilian keratin and its from 80-160

Xx.

 

[Bluerinse]

I'm Saving to open my own salon.
I'm saving between 800-1200 monthly. But there are some months I can save more but not every so I'd say its between that. But I do work a lot. And do a lot of Brazilian keratin and its from 80-160

Xx.

I hope your saving for your huge tax bill if your working that much!

 

[Thiago]

I hope your saving for your huge tax bill if your working that much!

Well yes and also keeping the recipe of everything I buy so I can sent it off at the end of the year.... And I'm doing great. Since I left my job just good things happening

 

[Thiago]

And yes I'm saving enough coz I'm saving almost everything after paying bills etc etc

So I hope I have enough to pay the tax I guess it won't be more than what I saved haha


In the salon I work now we have up buy our own products. But they have a huge stock of colours that will last for a while so we don't have up buy colours. So I'm not spending more than 200 on stock so that's how I'm saving good for now

 

[lissy00]

I'm Saving to open my own salon.
I'm saving between 800-1200 monthly. But there are some months I can save more but not every so I'd say its between that. But I do work a lot. And do a lot of Brazilian keratin and its from 80-160

Xx.

Wow, well done you. Sounds like youre doing really well. xx