I have £21,000 saved up, what is the best thing to do with it?

dazcouz

Hi,

I currently have £21,000 saved up at the moment. Which has taken me years as I earn a salary of £15,000 and am able to save up a big percentage of my salary because I still live at home with parents. Eventually I want to move out and have my own property (I'm 22 now). What is the best thing to do with my money to earn a high interest?

I currently have £3,600 in an Abbey ISA earning 3%, I think. And the rest is all in my Abbey and C&G normal savings account (interest 0.1%) I think.

Thanks;)

Beta89

Invest it in the stockmarket by buying Crude oil futures, corn/wheat/sugar futures,
and leaving a few thousand quid in cash.


Oil and the other soft commodities are extremely likely to ATLEAST double by end of year from there current extremely low prices.

Could easily triple/quadruple within 2years..

(Oil is currently at $53.62, within the enxt few days when teh dow and dollar pullback you should be able to buy oil at about $51.26,
so even if we just get it to $100 by year end, thats still 100% profit on your money)


So that 21k will become 42k+


Welldone on saving up so much btw

poolielad

Beta89 wrote: »

Invest it in the stockmarket by buying Crude oil futures, corn/wheat/sugar futures,
and leaving a few thousand quid in cash.


Oil and the other soft commodities are extremely likely to ATLEAST double by end of year from there current extremely low prices.

Could easily triple/quadruple within 2years..

(Oil is currently at $53.62, within the enxt few days when teh dow and dollar pullback you should be able to buy oil at about $51.26,
so even if we just get it to $100 by year end, thats still 100% profit on your money)


So that 21k will become 42k+


Welldone on saving up so much btw

Which, crude oil companies would you suggest investing in?????

Many thanks

mr_fishbulb

If you have already filled up your ISA this year (looks like it as you have got £3600 in there) then put another £3600 in next tax year. You may be able to find a better rate and transfer the Abbey in there too. There are a few paying around 3.5% at the moment.

If you can continue to save money until you need it, start a regular savings account and save an amount each month into that.

As for the rest your your savings. Find yourself the best instant access savings account (look at best buy tables) and put it in there. If you are 100% sure you don't want to buy a house in the next 12 months and you won't need to touch the money, put it in a 1 year fixed rate bond - you may be able to get a little more interest.

DO NOT UNDER AND CIRCUMSTANCES PUT THIS MONEY IN COMMODITIES!! This is a very high risk option and you are just as likely to lose your hard-earned cash than to double your money. Think about it - if prices are likely to double by the end of they year, wouldn't they have already gone up a lot as professional traders clamber on top of each other to buy them?

Investing (which is not saving) in the stockmarket is a whole different kettle of fish. You need to tie your money up for at least 5-10 years. You need to spread it around a lot of different areas. You need to be prepared to take a loss. And you need to do a lot of research into it yourself - not just take what someone says on a message board as gospal. You don't want to be doing this with a deposit for a house which you may need to get at in a few month's notice.

What you have with your £21,000 saved up is a good position for a buyer to be in. You have the cash ready and waiting to pounce as soon as the housing market sorts itself out and you can get a mortgage (I'm not going to speculate when that might be).

wombat42_2

mr_fishbulb wrote: »

DO NOT UNDER AND CIRCUMSTANCES PUT THIS MONEY IN COMMODITIES!! This is a very high risk option and you are just as likely to lose your hard-earned cash than to double your money. Think about it - if prices are likely to double by the end of they year, wouldn't they have already gone up a lot as professional traders clamber on top of each other to buy them?

Er futures prices for many commodities are much higher than the spot price, indicating a likely good rise in the future.

6022tivo

Spend, Spend, Spend... Then live on the "never never"....

mr_fishbulb

wombat42 wrote: »

Er futures prices for many commodities are much higher than the spot price, indicating a likely good rise in the future.

Hi Wombat. Don't get me wrong - I'm pro-commodities just like you. Now is a good time for some drip-feeding. I don't think the payoffs will become apparently by the end of this year though. Maybe 18 months.

But it's not right for this case.

wombat42_2

mr_fishbulb wrote: »

Hi Wombat. Don't get me wrong - I'm pro-commodities just like you. Now is a good time for some drip-feeding. I don't think the payoffs will become apparently by the end of this year though. Maybe 18 months.

But it's not right for this case.

Yes it is irresponsible to put all the 21K into equities or commodites as a decent cash buffer is always needed. It sounds like the OPs timeframe is about 5 years which is a little short for investment risk anyway. I would keep say 20K alone in a high rate ICICI account and drip feed any future savings into equities or commodities.

terryw

dazcouz wrote: »

Hi,

I currently have £21,000 saved up at the moment. Which has taken me years as I earn a salary of £15,000 and am able to save up a big percentage of my salary because I still live at home with parents. Eventually I want to move out and have my own property (I'm 22 now). What is the best thing to do with my money to earn a high interest?

I currently have £3,600 in an Abbey ISA earning 3%, I think. And the rest is all in my Abbey and C&G normal savings account (interest 0.1%) I think.

Thanks;)

I was so pleased to see your post. Here in Nigeria I have a superb investment opportunity for you. I am Prince Monolulu and I have a large chest full of gold which I need to send to a willing partner outside Nigeria.

The gold is valued at £3333330000 and you will be entitle to 10 per cent. Please let me have your bank account number and sort codes so that I may exercise the modualities and pay this money into your account.

terryw

dazcouz

terryw wrote: »

I was so pleased to see your post. Here in Nigeria I have a superb investment opportunity for you. I am Prince Monolulu and I have a large chest full of gold which I need to send to a willing partner outside Nigeria.

The gold is valued at £3333330000 and you will be entitle to 10 per cent. Please let me have your bank account number and sort codes so that I may exercise the modualities and pay this money into your account.

terryw

Ha! Too late I have already given all my money to George Adwdwongo.as he said I had won the Ugandan national lottery (£10,000,000) and he just need the £21K to "relese" the funds. He seemed a nice guy though, although it has been a week since I last heard from him.

Seriously, I'm interested in investing in Oil as someone said it was likely to double by next year. However I am a complete novice to investing so will do a lot of research before taking the plunge. Also is there any way I can boost my income a bit, my job doesn't pay particulary well for all the work I do and I have access to a computer in the evenings. I already flog a lot of my stuff on eBay and enter online competitions. Thanks:beer:

mr_fishbulb

dazcouz wrote: »

Also is there any way I can boost my income a bit, my job doesn't pay particulary well for all the work I do and I have access to a computer in the evenings. I already flog a lot of my stuff on eBay and enter online competitions. Thanks:beer:

Have a look at this:
http://www.guardian.co.uk/money/2009/mar/12/make-money-on-the-internet

Also when you buy anything online, see if you can get it through a cashback website.