Featured Post: Trying my best to save!

Thrifty attempts by Ned- making our own cakes!

Any regular readers will have noticed that since my redundancy things have got quite difficult financially here in the Being a Mummy household. We have tried really hard to make saving, but if I’m honest we were already being pretty thrifty as living where we do we have a large mortgage. Things go so bad recently that I went to the supermarket we quite literally didn’t have enough money, overdraft included, to pay for the food. That’s when I realised that things really do need to change, I’ve become even more frugal and I am desperately trying to pull together some savings so we have an emergency fund. There has been one unexpected but rather brilliant result of this though in that I’ve lost loads of weight and I think the kids are eating much better as I haven’t bought any cakes or junk type food, opting for the bare essentials. If they want a cake, then they have to make their own.

With excellent timing for us, the new ISA rules came into effect on 1st July, allowing people to put a maximum of £15,000 into a new ISA (NISA).  This money can be split in any proportion between a New Cash ISA and New Stocks and Shares ISA.  Its something that I’m certainly looking at as a savings option as I need to make sure we have some money in reserve in case there is another job crisis or we need to find cash for something unexpected.

In terms of the best account to go for,  Scottish Friendly have pointed out that  savers should be wary of being drawn automatically into holding all their ISA funds in cash and to consider the alternative funds available through ISA investments. Particularly as savings providers have recently lowered their already low interest rates for fear of overly high inflows. This is a tricky one for many of us to consider as for many years we have been told that stocks and shares are inherently more risky! As I’ve got older though I think that actually if life what often appears to be a ‘safe’ bet based on what we have been told isn’t necessarily the case and you really need to consider the options for yourself, have a read of this expert advice:

Neil Lovatt, Scottish Friendly’s Director of Financial Products, said: “For every one investment ISA taken out, three cash ISAs are opened.
“Cash is easier to understand as it offers security and access to the savings without penalty that investment ISAs do not. People are being put off by what they think is pure equity investments and instead are opting for accounts that offer poor returns on their cash.
“The changes introduced in the budget gave savers a glimmer of hope and incentivised people to put more money aside each month. However, the Cash ISA market has not risen to the opportunity, instead choosing to offer low rates of interest on cash ISAs and in some cases actually reducing their rates for fear of overly high inflows”.
Personally, I’m keen to save as much as we can and I think dividing my money across different products is a really good idea. I’m keen to make a good return on my savings, but at the same time lower the overall risk (or at least my perceived risk). Whats more, having savings spread across lots of different products makes it much more tricky to access them (when you are disorganised like me) meaning its easier to save.

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