no savings

BIZZYIZZY

Hi all, would like to ask for advice from you, First of all I am ashamed to say we have NO savings at all, Apart from works pension (we are in our 50's) also we have a mortgage, but no big debt, So what I want to say is that we are going to try real hard to start savings this year!!!!! So what do you think isa or what and with whom thanks

malik999

No need to be ashamed but as you will know you have picked the worst year to start saving, interest rates as they are .
ISA is a good start do you have any idea how much you will be saving, i.e. monthly,yearly etc & are you saving for something specific, ie long term savings plan, or short term.
Paying off/more towards your mortgage is a savings plan.

Aegis

BIZZYIZZY wrote: »

Hi all, would like to ask for advice from you, First of all I am ashamed to say we have NO savings at all, Apart from works pension (we are in our 50's) also we have a mortgage, but no big debt, So what I want to say is that we are going to try real hard to start savings this year!!!!! So what do you think isa or what and with whom thanks

Do you know what your pension is likely to pay out at retirement? Is your mortgage on capital repayment terms or interest only?

These questions will help to determine if you need to seek additional professional advice about planning for your retirement or for paying off your mortgage, which may well both take priority over your desire for an increasing savings balance.

BIZZYIZZY

thanks, We were thinking of saving long term for when we retire, we do still have a lot of mortgage to pay off, it is repayment, Never thought about paying extra towards mortgage And not sure about pension, I have to say we are both on low wages, But I look at these threads and people seem to have loads and loads of money in bank!!!!!!!

malik999

BIZZYIZZY wrote: »

thanks, We were thinking of saving long term for when we retire, we do still have a lot of mortgage to pay off, it is repayment, Never thought about paying extra towards mortgage And not sure about pension, I have to say we are both on low wages, But I look at these threads and people seem to have loads and loads of money in bank!!!!!!!

Savings for alot of people is solely about incomings and outgoings rather than investments. You might consider increasing your incomings, (new job?) or reduce your outgoings/costs, this can be in the form of many things including household bills (electricity, telephone etc). hth

Money_Grabber13579

If you pay tax, an ISA is the best route as some good deals on fixed rate ISAs can be found. (Well they're not that good compared with what they were!) If your not a tax payer, some normal fixed rate accounts offer better rates that ISAs.

And your just one of many people who are in your situation. So don't be embarrassed! It's a policy that the labour government has promoted over the last 11 years!

DiggerUK

@ BIZZYIZZY,
I'd advise you to get rid of your mortgage as quickly as possible. If the problems created by the bailouts come to fruition then we could be back to 1980 style inflation.
Having a saving plan when you still have mortgage debt is putting the cart before the horse.

If your current mortgage rate is currently, say, 5% and you make extra payments then by a reverse process your are benefiting by getting a higher rate of interest than the best paying ISA at the moment.

I would make the mortgage your number one priority.
Good luck.

StuartGMC

As noted by others, overpaying your mortgage would be a good step to take as it is a debt. There are plenty of us on the Mortgage-Free Wannabe board who can provide comment on this. You need to check your T&C on what you can overpay per month/year.

That said, I would advise you first to get some savings in place for emergencies - they happen (e.g,. for me in Jan £500 to rectify electrical problem on the car, two weeks ago new larder fridge required £400...). Usual recommendation is 3, 6 or 9 months outgoings in ready access as emergency pot. Then overpay.

Best wishes and perhaps see you on the MFW board (I can even send you a household budgeting spreadsheet, but it's all detailed in the diary I keep there).

BIZZYIZZY

Thanks for all the advice, and yes i am thinking about the mfw board, It is just that when you read threads about people having lots and lots to invest I think Gulp!!!!!!!, Also I feel that a lot of you save EVERY SINGLE PENNY, where as...... wait for it we have sky (big package) I don't always look for the best bargain etc etc, So you might say what is she doing here!!!!

ed123_2

,......I would advise paying off the mortgage first, then looking at cash isa's. Funnily enough the benefit system works against savers so if you got to £16k you would not get council tax benefit, pension credits could be affected from the age of 60 etc etc. I'm not saying that this is right or don't save but I would get advice from CAB etc

evenasus

BIZZYIZZY wrote: »

But I look at these threads and people seem to have loads and loads of money in bank!!!!!!!

Well in our case, we have saved all our lives.
We haven't gone without - but always thought before we bought.
Many savers on this forum will have done the same.