• This topic has 21 replies, 14 voices, and was last updated 1 month ago by tails.
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  • Anyone used Plum or Moneybox
  • Premier Icon dannybgoode
    Full Member

    I am a crap saver. Really horrifically bad. But, if the money went out at point of source and accumulated somewhere I may be in with a fighting chance of building up a small cushion. Has anyone used an app like Plum or Moneybox? Pros and cons, which are good and which are not etc?

    Premier Icon tails
    Free Member

    I use Moneybox with a stocks and shares ISA. I’ve no complaints in how it operates you download the app and link to your bank accounts which needs activating every 6 months. It the rounds everything up to the nearest quid. Soon starts adding up. Not sure I would add a lump of money. It gives you a choice of cautious, balanced and adventurous and gives you the average return on each. Worth giving a go I think.

    What’s a good return on a stocks and shares ISA?

    I keep meaning to ask on here about funds as I’m looking to invest a lump. Currently I have Moneybox, premium bonds, various pensions that need combining, but looking to invest in a few funds after a spot of research.

    Premier Icon tails
    Free Member

    Plum looks like there are more options. I guess the fees are high for these apps? I’ll start looking into that.

    Premier Icon alpineharry
    Free Member

    I use moneybox and it’s pretty good for saving up as you don’t notice it coming out of your account. Been using it since July / August and have about £200 in a Stocks and Shares ISA. I wouldn’t say I use my card all that often so does add up quickly (In a good way). With regards to fees, I believe they’re pretty low, about 0.2% after a quick google, higher than some but not toooo bad.

    @tails – Might be worth looking in to Vanguard, few options on there and generally you get a return, probably not as high a return as potential on Stock Market but it’s pretty consistent. I put about £500 in to begin with and add to it each month, current return is about 9% but depends which fund you invest in. I’ve been using S&P 500 as it’s pretty reliable and fees are pretty low compared to most

    Premier Icon Cougar
    Full Member

    Second bank account and a direct debit?

    Back in my grandparents’ day there was the concept of a ‘current account’ and a ‘savings account,’ the latter being higher interest but having limitations around withdrawals. Y’know, back when banks actually gave you money in return for your custom rather than charging you for it.

    Premier Icon tails
    Free Member

    @alpineharry cheers I’ll have a look, plum looks fairly suitable and operates a bit differently to Moneybox. How much do you pay to pay in each month? I thought there is a transaction fee. Cheers

    Premier Icon lc87
    Free Member

    I use plum, you can adjust the settings as to how it saves and when. It works out how much you can afford/have spare and takes the money weekly based on outgoings/what’s in your account at the time. I was surprised how quickly a couple of hundred accumulated in there without me really noticing it go out my current account. I’ve withdrawn from it before with no trouble either.

    Premier Icon richardkennerley
    Full Member

    I’m in a credit union through my employer. Money goes straight out of my wages every month before I even see it. They pay a dividend once a year, which has been decent in the past apparently, but the few years I’ve been in its only been about 2% I think.

    But that’s not why I use it, I never see the money so don’t miss it. It’s just a hassle free way of preventing me from spending all my money! Daft, but it works. I check on the balance every now and again and it accumulates quite quickly.

    Maybe this type of thing could work for you if you have access to similar?

    Edit – no fees either.

    Premier Icon dknwhy
    Full Member

    I use moneybox and have been for about a year now. Set it at £20 a week and use round ups from several cards and accounts which means I save £30-£50 a week.
    Have earned around 10% over the term paying just over £10 in fees.
    Nature of the account means it can go up or down. I lost almost 15% when covid hit but was lucky that markets recovered.

    Premier Icon tails
    Free Member

    @richardkennerley what credit union are you a member of, never even thought of joining one. What do they do with the money, invest it in markets? They seem to lend money out. Bit confused. Cheers

    Premier Icon richardkennerley
    Full Member

    It’s this one

    https://clevr.money/about-us/

    It’s local to Blackpool/Preston area, there’s a list of accepted employers. I assume there’s alternatives around the country.

    Honestly, I don’t really know what they do with the money! Like I say, I use it coz they effectively take some money off me before I even have it, keep hold of it for me then let me have it back when I need to make a big purchase!

    I’m not saving a fortune in there, but it builds nicely for emergencies!

    Premier Icon cb200
    Free Member

    Plum here.

    I have some money in a couple of funds built around certain sectors and it is fine, with instant revaluations when you log in. The fees are pretty much the same as elsewhere.

    As above, it can ‘smart save’ but also I’ve signed up to a couple of different methods:

    1: it rounds up any transaction to the whole pound and adds that total to savings – around a fiver a week for me.

    2 – the 52 week challange: saves £1 on week one, £2 on week 2 etc for fifty two weeks. That’s £1378 at the end. I’m on week 20. You can easily stop any time if your account is straining towards the final weeks.

    Premier Icon slackboy
    Full Member

    Second bank account and a direct debit?

    This.

    It takes seconds to set up a savings account with the bank where you have a current account and then you can set up a regular transfer to go out on the day you get paid.

    That way you don’t have to do anything but the money is easily accessible if you need it in future via the same online banking app that you already use.

    The rates of interest are rubbish – but from the OP it seems the prime concern is building up some savings rather than getting good interest

    avoid anything that invests in markets/funds/stocks/share/peer to peer lending. from what you’ve said you want a quick and easy way to stash a regular amount of money so you don’t spend it.

    Re Credit Unions – they are an alternative to banks / building societies and primarily exist to make loans to their members – comes from the industrial revolution days when getting a bank loan was impossible for “working” people,

    They generally have a geographical remit – i.e. they’ll accept membership and makes loans to people in a given geographical area.

    They make money by giving loans to people who’d struggle to get bank loans. the lending criteria are stringent and interest charged is not low – so its not as risky to a saver as that sounds.

    Premier Icon slackboy
    Full Member

    Also are you a crap saver or just too good at spending?

    Its worth taking a look at his article to see if any of the ideas can help you

    How to stop spending money: Tips and tools to help you cut back – MSE (moneysavingexpert.com)

    you could also try the demotivator tool:

    The Demotivator: stop you spending when you can’t afford it (moneysavingexpert.com)

    Premier Icon toby1
    Full Member

    I use the Monzo ‘pot’, it rounds up and lets me add extra to it on an ad-hoc basis. It does mean it’s highly accessible as it’s connected to my account. But the MSE article above is a good one to help you with the initial spending.

    I could do with something that bills me 10% of my credit card spend a month to savings as it would help me a) reduce spending and b) save an extra lump a month.

    Premier Icon gauss1777
    Free Member

    2 – the 52 week challange: saves £1 on week one, £2 on week 2 etc for fifty two weeks

    I was thinking you meant

    £1, £2, £4, …

    that would be some saving!

    Premier Icon cb200
    Free Member

    I was thinking you meant

    £1, £2, £4, …

    that would be some saving!

    Ha, sorry, I can see how you’d think that. Just did a quick calculation. Week 40 would see £549Billion debited from my account. I’d probably stop at that point

    Premier Icon footflaps
    Full Member

    What’s a good return on a stocks and shares ISA?

    Impossible to say as it all depends on what you invest in and how the markets do each year. A fairly straight forward investment choice would be a low cost FTSE 100 Tracker, which would have given you about 8% per annum over the last few years (see below).

    Looking back over a longer time frame gives an investor a better idea of the average return they can expect. Between 1984 and 2019, the FTSE 100 rose by 654% in price, and 1377% on a total return basis. On an annualised basis, this amounts to an annual price return of 5.8% and an annual total return of 7.8%.

    https://www.ig.com/uk/trading-strategies/what-are-the-average-returns-of-the-ftse-100–200529

    Premier Icon slackboy
    Full Member

    I was thinking you meant

    £1, £2, £4, …

    that would be some saving!

    4,503,599,627,370,490

    4.5 quadrillion quid on week 52. Thats nearly as much as Elon Musk earns 🙂

    The Rice and Chessboard Legend – Maths Careers

    Premier Icon b230ftw
    Full Member

    I have found over the years that there are several ways of saving – one of the above might suit you – but my biggest lesson is to not save too much. Saving too much makes it painful and you are more likely to give it up pretty soon as the cutbacks bite hard.

    My other rule is that if I get any increase in wages I put 1/3rd of the increase in savings, 1/3rd into the mortgage and enjoy the other 1/3rd. That meant we knocked off 6 years off our last mortgage before we got a new one when we moved house, and always had some savings for holidays or emergencies.

    Premier Icon IHN
    Full Member

    Separate account, standing order set up on your pay day put some money aside, so it’s essentially gone before you even see it.

    My current employer, but it’s not a plug, just an example of the principle, also has links to budget calculators and stuff:

    https://www.nationwide.co.uk/guides/news/all-news/2019/08/pay-day-save-day

    Or Plum/Moneybox/others for more techy versions of what is basically the same thing

    Premier Icon tails
    Free Member

    Thanks footfalls my Moneybox is currently at 7.26% not gotmuch in there as it only rounds up.

    OP have you thought about premium bonds I’ve got £5k and finally won £25 so you’ll not gain much if anything but it’s an okay way to save.

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