what would you do in my situation?

the_north

Really i am just looking for advice from the guys and girls that have been there and done it and can pass some advice on to me.

Four months ago i got my first proper job after leaving uni and i am making a decent wage which enables me to save £700 per month.
I have never been able to save / have this spending power before and i am a bit overwhelmed. I am not one to just flutter money away and have always enjoyed saving and being entrepreneurial with my money.

Option 1
Save for a deposit on a house with the hope that the housing market will be struggling in 2 years time when i have the deposit ready? I would be looking to buy a house to renovate (As a project with my dad as well as an investment).

Option 2
Spend 5k on a nice car now and continue saving to enable me to be flexible when the next career step on the ladder a rises. As my current employers pay will max out at 25k

If you where in my position what would you do?

OurKev

First thing - don't be in too much of a rush, you are in a good situation and have lots of options!

I think, if I were you I would save your £700 for say 6/7 months and review your situation then.

That would give you time to consider and you would also have £4-5000.

cos69

Unless you need a nice car, I would save for a deposit on a house. However, having a bit of fun such as a nice holiday should also be factored in - might not be able to have the money for that once your paying off a mortgage and costs of renovations.

lazer

At a guess, since its your first job after leaving uni, you're still quite young

My personal advice would be of the £700 you have to save, save about £350 of it for a house deposit at some point in the future, out it into a seperate account that you can't touch

The remaining £350, use it for living now and having fun, going out, going on holidays, buy yourself some treats (possibly the car)

Don't make rash decisions and remeber that time can change you and what you want!

Newbie2saving

I would be slightly catious in the current climate about being too extravagant, yet you have to enjoy your hard earned cash. Do you have rainy day savings for eg if you lost your job, that would help cover costs for a few months? This should be your first goal. Then build up on that for the 'big stuff'. Look for the best savings account too, currently 2.9%aer.

Don't forget a few treats along the way, would be boring to have all your cash sitting away without enjoying it! Enjoy!!!