Saturday, 12 March 2011

Banishing the Bain of my life...the overdraft

Hey, hope you're all having fabby weekends, i'm just back from an afternoon of trying on more wedding dresses!

I've just sat down to read through my favourite blogs, and one blog post in particular by A Daisy Chain Dream jumped out at me, as it's something that I am finding a bit of an issue at the moment: savings.

Now, I have a "Graduate" current account with the Royal Bank of Scotland, which doesn't really entitle me to much apart from an interest-free overdraft of something up to like £1400 (although the interest part kicks in after about 3 years after graduation I believe...eek). Whilst in the beginning this was a lifesaver in terms of being able to dip into it whenever I needed to (i.e. at the end of the month when my pay wasn't going far enough) i've now not so much been dipping into it as diving in full on head-first, and can easily find myself in the red to the tune of about £1000 each month. This usually gets cancelled out by my pay which is circa £1000 a month after tax, but really this brings me back to square one, as although I may be at "zero", I then have to go into my overdraft to pay for things....and so the cycle continues.

I do think I have developed a bit of a spending problem, in that I often go into shops and find myself picking up and buying things with the attitude of "treating" myself, and it's definitely been made all the harder by all the product recommendations and raves I read about on blogs/YouTube!
I have this month started a sheet of incomings/outgoings (which has been a shock to the system, but is quite reassuring and I think i'll continue with it), and I also this morning picked up "Spendsmart" (which I consider allowed since it was reduced from £10.99 to £1.50!) which I hope will be a good guide to getting me back on the right track.

What I would like to know however is if any of you lovely people have any hints/tips/suggestions on how best to save??? For example do you think I should go down the ISA savings route, or maybe just do something as simple as a jar in my room? Please let me know :)

Melanie x


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