Cash-strapped Brits are looking for ways to save money where they can - and one man has shared how he's managed to save £100K thanks to some strict rules. Samsom Dada, 32, has always had the motto "buy what you need and invest the rest" and thanks to his dedicated scrimping, has managed to rack up a healthy savings pot. He makes sure he doesn't spend on unnecessary items, will decline social invitations, doesn't drink and makes all his meals at home. The super saver was left "terrified" after the reports that millions of pensioners are living in poverty and it gave him the motivation to ensure he will be well-equipped when it comes to his retirement.
With the hope of using this pot to purchase a retirement cottage or go on European cruises, Samsom's careful money-handling habits developed while he was at university. His years of dedication mean he will now be able to retire at 58, rather than the average age of 67, and with a healthy pension pot of at least £500,000. "Receiving maintenance grants was the first time I saw four-figure sums enter my bank account. This was when I decided I would never take money for granted. I had some casual shifts at university working as a student brand ambassador on open days, which helped me earn some extra cash," he told Metro.
The pension saving first properly started in 2015, when he became a press officer and received his first pension statement. He said seeing the estimated value of his pension inspired him to boost his contributions. Samson reportedly earns over £4,000 a month, which is made up roughly of £3,000 from employment, £500 from bank savings interest and at least £500 from investing in undervalued stocks. His outgoings include £1,400 for housing, utilities and food costs and sets aside £750 for his pension. Samson then splits the rest between a tax-free cash ISA and fixed-term bond accounts.
However his strict saving strategy comes at a cost - and comes with frugal living. This includes sticking to a "no meals out" rule, as he doesn't see the point in "paying for meals I can cook". "I start each day with a bowl of oats, which I buy in bulk for just 90p for a 1kg packet. For lunch, I tend to rotate between either chicken fillet and lettuce, or salad tomato sandwiches or noodles with a boiled egg. I cook a container of seasoned chicken fillet strips that I can use several times a week. Dinner includes either a batched pot of homemade chicken fried rice with mixed vegetables and king prawns, pasta served with a portion of meat, or veggie casserole," he told Metro.
Samsom also said he doesn't spend money on "Emotional Depreciable Assets (or EDA)" which are purchases driven by feelings which could decrease in value. He also doesn't own a car or go abroad. "If I don't need it, I don't do it. That extends to socialising too and is why I've never drunk alcohol or smoked. My commitment to frugality means that I only attend the weddings or birthdays of very close family members. If I don't feel that going somewhere is value for money, I politely decline.".
The supersaver said he doesn't feel like he's missing out and is content with "being at peace" at home, eating a healthy dinner and watching Eastenders. But it's not just Samsom that enjoys a night in, as many people have cut back on their spending due to the cost of living crisis. According to the Office of National Statistics, around 26 million Brits (57%) have cut back on spending money on non-essentials, while more than a third of those whose cost of living had gone up cut back spending on food and essentials (35%, around 16 million people). Almost a quarter (23%, around 11 million people) used savings to cover costs, and 13% (around 6 million people) said they were using more credit than usual.
Due to this, Samson said he gets an "understanding response" from people when he declines invitations and said living frugaly is "worth every sacrifice" as he would rather save wisely now, so he can reward himself later in life. "At the end of the day, having a six-figure pension pot is not important because it looks good on paper, but I believe that it is also an economic necessity for everyone because we are living longer.".
