Young invester...bit of advice needed!

dunstonh

1 - I HAVE to pay in at least £50 a month, no changing it to a lower amount if i decide i fancy a bit of spare cash!

ISAs take 50pm

2 - It's simple and i understand how it works!! No interest rates or funny names etc....just prizes to win (if your lucky!)

No interest, no funny names and no prizes most of the time.

cloud_dog

I would suggest (and I'm going out on a limb here) as you seem reasonably confident and comfortable with managing your money, and due to your young number of years you could afford to take some risk with some of your spare money and would recommend investing some in an UK based investment fund of some kind.

Obviously, as your knowledge and experience of investments and investment strategy's grow you could afford to diversify.

This is my opinion and you will need to assess your own attitude to risk before making financial decisions.

cloud_dog

SAP_Saver

dare_bee.
I am only 22 similar age to you and I regularly put money into Premium bonds have over £1000 I have not won but it does no harm leaving them in there I like the fun and idea that you may one day win some big cash price.

I also invest in the £3000 cash ISA with A&L, you can also do this even if this is in May it just means you can not put any more into this fund or any other ISA until the following April.

As for Stocks and Shares, I take great interest in these, and have a modest portfolio. They are very simple to understand, the number next to them if you see them in the paper/on-line is the value per share the company is worth (banks often 1000's of pence per share, small shops will be 10's of pence per share). Take a look in a paper and see them.
They fluctuate daily (interdaily also) on share value. If you invest now and they go up you gain. In theory you would invest now and be looking to gain over a long period (5 years for example) the FTSE100 (linked to the UKs 100 biggest companies) has out performed any investment with your local bank since WWII. You can invest regularly upto £4000 a year into share tracking MAXI ISAs ontop of your £3000 MINI ISA. Or all £7000 into a MAXI ISA.

As for the pension, I would rather put that £20 into my landlords pocket and relax after all your money saving and investments which are very important, it is just as important to live a little relax and enjoy your youth!

Good luck