21 with £13000, what should I do with it?

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  • nb0825
    nb0825 Posts: 115 Forumite
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    Open a LISA, stick £4k a year in there until you're ready to buy
  • elephantrosie
    elephantrosie Posts: 467 Forumite
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    21 with 13k. you are very finance-wise!
    at 21, i hardly had 1.3k in savings.
    Another night of thankfulness.
  • Sean473
    Sean473 Posts: 88 Forumite
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    elephantrosie wrote: »
    21 with 13k. you are very finance-wise!
    at 21, i hardly had 1.3k in savings.

    Haha, I had like 1k which was -£500 by the time I started my job a year later...

    OP is in a really good position. I suggest opening a Nationwide flexdirect account and putting 2.5K into it + getting the regular saver. Also might be worth opening a Santander 123 lite account + regular esaver for the reset of the money!
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    macman wrote: »
    As suggested above, a LISA or Help To Buy ISA is really a no-brainer-what other investment is going to give you a 25% bonus each year? But unfortunately you're now too late for the 16/17 allowance.
    With £13K available, you could in fact invest in both the above ISA's and a SIPP as well for 17/18. (£4K, £2.4K and £2.8K respectively). Total £9.2K.
    http://www.moneysavingexpert.com/savings/lifetime-ISAs
    Having both a LISA and HTB ISA is probably not a good idea, since you can only use one of them to buy a house. The LISA is the better choice.
    Eco Miser
    Saving money for well over half a century
  • elephantrosie
    elephantrosie Posts: 467 Forumite
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    Sean473 wrote: »
    Haha, I had like 1k which was -£500 by the time I started my job a year later...

    OP is in a really good position. I suggest opening a Nationwide flexdirect account and putting 2.5K into it + getting the regular saver. Also might be worth opening a Santander 123 lite account + regular esaver for the reset of the money!

    exactly. maybe OP can teach us how he saved 13k by the age of 21? im keen to learn.
    Another night of thankfulness.
  • elephantrosie
    elephantrosie Posts: 467 Forumite
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    nb0825 wrote: »
    Open a LISA, stick £4k a year in there until you're ready to buy

    not only that. wait for one year before lisa matures.
    Another night of thankfulness.
  • bobobski
    bobobski Posts: 771 Forumite
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    Eco_Miser wrote: »
    Having both a LISA and HTB ISA is probably not a good idea, since you can only use one of them to buy a house. The LISA is the better choice.

    I understand the point, but I'm planning to keep my HTB ISA running after I've opened the LISA as it's still at 3.5% and I've maxed out everywhere above that, and am a higher rate taxpayer on the brink of earning £500 interest per year. So although in general I agree, there are times when I don't think your comment applies.
  • BrookesAndrew
    BrookesAndrew Posts: 340 Forumite
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    Thank you all for the responses. I have looked into the LISA and will definitely go for that but it seems nobody is offering it until June 2017? 123 account is something I am going to look into as well and the Nationwide account.
  • BrookesAndrew
    BrookesAndrew Posts: 340 Forumite
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    elephantrosie wrote: »
    exactly. maybe OP can teach us how he saved 13k by the age of 21? im keen to learn.

    Working from 16 years old, living at home and putting away at least half of my money every month, sometimes even more with bonuses! I must say though that even with this money it can be quite a strain saving money when you are seeing all your mates going out all the time and going on nice holidays! Be worth it in the end I am sure!:j
  • Fatbritabroad
    Fatbritabroad Posts: 573 Forumite
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    BrookesAndrew wrote: »
    Working from 16 years old, living at home and putting away at least half of my money every month, sometimes even more with bonuses! I must say though that even with this money it can be quite a strain saving money when you are seeing all your mates going out all the time and going on nice holidays! Be worth it in the end I am sure!:j

    It really will keep it up.

    I've always been boring and saved not quite as early or as hard as you have but at 36 and despite a divorce which reduced my net worth by 100k my net worth is around 360kinc house equity. Now trying to get more net worth outside of house equity (that's about 200k of it). Every chance with a fair wind of being a millionaire by the time I retire. Have a goal in mind and increase savings pensions as you get pay rises so you don't notice the difference and it's surprising how much you can salt away while still having a decent life. Increasing your salary helps too of course! I've eased up a bit now and allow a few more luxuries like a nice car and more expensive trips but still save around 25% of my pre tax Income
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