Advice on better use of spare cash

mp80

Yes, I have Creditexpert - I know my credit rating will be shot at the moment after all these new searches but I don't plan on buying anything on credit, at least not in the forseeable future so I *should* be OK.

My plan is:

-Have at least 6 months rainy day money saved away - actual costs ~720/month at the moment so I have achieved that already.
-Get float of £2,500 p.m in current account at end of month before salary paid (Alliance & Leicester Premiere Direct - 8.5% / 12 months on £2.5k so I'm not wasting away at 0.1% AER)
-All money above float swept away into savings account at end of month
-I have moved my CC balance to Virgin 0% for 15 months and plan to pay minimum payments for 15 months (as it's not costing anything to service the debt at 0%) and then wipe it out with the savings + accrued interest at the end of the 0% term.
-Reduce costs, mobile contract is in last month and I don't use it that much so have switched the last month onto the lowest tariff, saving £25.
-Make as many purchases as possible in the next 4 months on Amex Plat 5% cashback, settle via DD each month.
-Use cashback sites where I can and read this site as often as possible to gain "the knowledge"

Once I'm settled into this way of thinking, look at overpayments on mortgage - £700 a month will see my mortgage gone in under 5 years, but that's a bit of a stretch at the present time

I'm definitely a convert, and it's all happened since discovering this site on Friday - I must have made at least an extra £500 a year just by doing the above over the weekend!

Thanks to all for the advice!

Primrose

Well done! Sounds as if you've had a pretty fundamental review of your finances. With your emergency funds in place and a good savings scheme planned you should be in good shape for the future. It's a good thing to do these exercises - really eye opening and habit changing. Over the long term you will save yourself a lot of money.

King_Weasel

You may need professional advice on whether paying off your mortgage is the best strategy for you. For instance, maybe you should be thinking about your pension. Maybe you be considering investing instead of some of your saving.

But if we're still looking at short-term savings, check whether Halifax are still offering 10% on regular saving; you tie up your cash for a year. You could each save £500 pm this way if they're still offering an attractive rate.

And if you go abroad much I would recommend a Nationwide FlexAccount (I use mine exclusively for foreign travel) plus a Nationwide or Abbey Zero credit card.

a7man

both of you should use your max ISA allowance. Have you considered a Stocks & Shares ISA?

mp80

I must admit I had not considered a S&S ISA - is it advisable at this turbulent time?
The other half also has a maxed out Cash-ISA so we can't put any more into those at the moment.

a7man

As long as the stocks are diversified then the turbulent time at the moment shouldnt have a huge effect. You can use websites such as citywire.co.uk to look at funds. Gold etc are the most stable things to invest in at the moment and ride out the turbulent times. Blackrock gold and general is one fund available. The risk you want to take will affect the fund selection, for example emerging markets could potentially still provide high returns but at a high risk & volatility.