£10,000 to play with, 24years old, small other income

ijrwe

Hi there. I'm 24 years old and currently have a few small income streams amounting to several hundred pounds per month, on average. I roughly break even with my rent and living expenses.

Here is my financial situation:

> No debts or money owed to anyone.
> £10,000 split between three useless savings accounts which haven't done anything for many years.
> About £1000 immediately to hand, which I avoid cutting into.
> About £900 owed to me by various parties, most of which I do expect to receive eventually.

I'm wondering what to do with the bulk of the savings there. In terms of investing it or giving it to a bank then I have no real knowledge of what is available, but I'm looking at high street bank websites at the moment to get a feel for it. It looks like you can get a clear 3-5% interest rate on fixed-term ISAs, is that right?

So if nothing else then I could just hand it over for five years (gosh, I'd be approaching 30 by then :eek:) and have an extra £1500-£2500. Which is better than nothing, but it wouldn't actually make much difference to my life.

Then there are various other options such as using it to set me up in some kind of job or business, but that's hugely complicated and not at all the "sure thing" that lay people tend to think. "Start a business", people say, as if there's nothing to it. I also know from experience that I am not a good business man. Well, I'm a "good" businessman, but that's why I didn't make a "good businessman", if you see what I mean!
There are very few areas I'd be interested in getting involved in, too - most business ideas I think are worthless and contribute nothing to the world.

Hmm, well I'll leave it there for now. Any suggestions will be much appreciated!

Thanks

opinions4u

ijrwe wrote: »

> £10,000 split between three useless savings accounts which haven't done anything for many years.

What did you expect them to do? Launch themselves in to orbit and dance around the moon?

If you leave a savings account, it will invariably wither away in to an account that pays you little interest. YOU need to proactively manage where you save your money, or simply become a cash cow to banks and building societies.

I'm wondering what to do with the bulk of the savings there. In terms of investing it or giving it to a bank then I have no real knowledge of what is available, but I'm looking at high street bank websites at the moment to get a feel for it. It looks like you can get a clear 3-5% interest rate on fixed-term ISAs, is that right?

Cash ISAs is a good starting point. 3% for easy access. 5% if you tie it up for a year. A range of options in the middle. I'd strongly suggest that you have 3-6 months net income available in an easy access account - just in case your usual sources of income cease.

So if nothing else then I could just hand it over for five years (gosh, I'd be approaching 30 by then ) and have an extra £1500-£2500. Which is better than nothing, but it wouldn't actually make much difference to my life.

Don't forget the impact of inflation. That extra money won't buy you anything better than it will today. Possibly a little less. So look in to NS&I Index Linked certificates (tax free) when they return, or Birmingham Midshires Inflation Tracker Bond (taxable).

Then there are various other options such as using it to set me up in some kind of job or business, but that's hugely complicated and not at all the "sure thing" that lay people tend to think. "Start a business", people say, as if there's nothing to it. I also know from experience that I am not a good business man. Well, I'm a "good" businessman, but that's why I didn't make a "good businessman", if you see what I mean!

I don't know what you mean - but if you're saying you don't think you'd cut it self employed just don't do it.

£10k doesn't go far in this world.

Look to maximise returns, minimise tax but then make sure you have that contingency fund available just in case life hits the fan.

ijrwe

opinions4u wrote: »

What did you expect them to do? Launch themselves in to orbit and dance around the moon?

It would have been nice.

opinions4u wrote: »

£10k doesn't go far in this world.

Yea, it's small change really. I live very cheaply and have never been a big spender, so compared to my outgoings it's quite a lot, but I know it's nothing really.

opinions4u wrote: »

I don't know what you mean - but if you're saying you don't think you'd cut it self employed just don't do it.

Well I'm self-employed already, and that's fine, but I didn't cut it in business, specifically. I'm not of the right personality or disposition for all that.

Thanks for the other info :money:

Lokolo_2

opinions4u wrote: »

What did you expect them to do? Launch themselves in to orbit and dance around the moon?

Reading that made my day :rotfl:, thanks Opinions4u!

oldtoolie

RE what to do with your money, there's a very good website called MoneySaving Expert (MSE). You should read the guides in this section.
http://www.moneysavingexpert.com/banking/

As far as what you should do with your life, can't really help except to say work hard, play hard and don't be afraid to try something new.