Saving for a rainy day

[river]

So I guess I should start putting some money away and get saving asI want to move out next year and thanks to being really strict with my spending for once and finally clearing some uni debts I will be debt free by End of January/Feb latest. -Yah!

But when I start saving how much should I be looking to put away on a monthly basis? I know it depends what I earn and out going etc but is there are recommended amount? i.e. 10%?! I have an ISA but I know you can get a premimum saving acount, any suggestions as to which one to choose? I want to have a deposit together by the end of next year (I'll be saving with my other half - he wont be able to put as much aside as I can) any other money saving tips/hints advise would be greatly appreciated.

Thanks

[BigMac]

Good for you!
Make use of the cash ISA - you can put in a maximum of �3k this tax year, rising to �3,600 from April 2008. The easiest way is to set up a standing order from your bank account to go out the day you are paid - if you haven't got it you can't spend it.... Encourage your other half to use his ISA allowance, too.

Generally, you should aim to have cash savings equivalent to six months of salary - or at least six months of bills - in case you lose your job or are unable to work for some reason.

Consider ASU (accident, sickness and unemployment)insurance so that if the worst does happen you won't be left in a real mess. The most sensible thing to do would be to consult an independent financial adviser - there will be a list in your local phone book, or look at www.unbiased.co.uk. This will also be important if you are thinking of buying a house/flat - again, speak to an IFA.

Longer term, you may want to consider school fees or university fees for any child(ren) you might have. The sooner you start and the more you can save the better.

And then there's the question of income in retirement - do you want to rely on the state pension or make additional provision of your own? Saving into a pension fund has some tax benefits. If your company offers a pension scheme amd makes contributions for you then you should certainly consider joining and making your own contributions, too.

This scratches the surface of what you might like to consider - the best tip/advice is to find an IFA. Ask friends and family for recommendations as well as doing your own research.

[plowter]

If you're looking for a 'rainy day' fund the basic rule of thumb is to put aside 3 months salary. That's just for emergencies, breakdowns or repairs.

This could be a good opportunity for you to take control of your money. Draw up an personal budget report. It's basically a list of your income and everything you spend money on. They're really useful if you find yourself in debt, but they're also a good way of finding out how honest you're being with yourself about those 'little treats'.

The most useful format is from the Money Advice Trust:

Money Advice Trust Budget Form

The first time you draw it up you'll find you spend much more than you earn, but it does help.

If you're looking for advice about specific products I'd recommend surfing through the forums at Money Saving Expert. The contributors are ordinary folks who are friendly and willing to share their experiences.

Good luck.

[WendyS]

Put away as much as you can afford. When you come to need the deposit on your house, by the law of averages you will find that no matter how you've saved, it will not have been enough!. You're obviously doing well on your debt-free campaign, so once your debts are cleared, I'd aim to having 3 months permanent "Emergency" money in a separate high interest paying account, and then set up a separate account for your deposit. ICESAVe is a good bet if you're happy to have an internet account.