Starting from Zero

Spoonhead88

Hello,

I have just cleared all my debts and i want to start saving i don't really have an amount in mind or for something i just want some saving behind me. I'm in full time employment and i can save £500 a month. My question is where is the best place to put my money? I have an isa for this year should i focus on put the cash in there or should i be looking into other types of savings?


Thank you

Sparky47

Spoonhead88 wrote: »

Hello,

I have just cleared all my debts and i want to start saving i don't really have an amount in mind or for something i just want some saving behind me. I'm in full time employment and i can save £500 a month. My question is where is the best place to put my money? I have an isa for this year should i focus on put the cash in there or should i be looking into other types of savings?

Thank you

If you are a taxpayer it is a good idea to put your money into an ISA, you can save up to £5340 in any one tax year.
Over the years you can build up a considerable sum which is free of tax.

Spoonhead88

once i have saved up my allowance where do i go from there?

[Deleted User]

See the links at the top of the page...

Starting Saving: Where to put your money

Ark_Welder

Before venturing away from cash as an investment it is usually a good idea to have a readily accessible amount that would cover about six months' worth of expenditure, just in case the worst happens and your income form employment is interrupted - it does happen. This cash could be either inside or outside an ISA, just so long as it is not locked in.

When you have this amount saved then you could perhaps look to other investment types. In the meantime, you can read up on the different possibilities to see their benefits - and drawbacks!

MoneySaverLog

Spoonhead88 wrote: »

once i have saved up my allowance where do i go from there?

Regular savers to be safe. Stocks and Shares if you want to invest and are prepared to risk your capital in order to earn greater returns.

atush

Step 1- clear debt. Congrats you have done this!!!

Step 2- safety net in cash of 3-6 months spending- we don't knwo how far you are with this w/o knowing your salary or outpoings but Ic an say that a Cash ISA ()or other tax free instant acess acts are good for this). Save any extrra over and above this amt in regualr savers.

Step 3- think of investing for the future. A, in a pension. This can br doane along steps 1/2. If your emplyer has a scheme and they cointribute you MUST take advantage as this is free money to you. B, ISAs (is Stock and share ISAs). C other investments/property.

Money_Saving_Dude

atush wrote: »

Step 3- think of investing for the future. A, in a pension. This can br doane along steps 1/2. If your emplyer has a scheme and they cointribute you MUST take advantage as this is free money to you. B, ISAs (is Stock and share ISAs). C other investments/property.

A few comments on step 3.

Any money you choose to invest for the long term you must think of not being available. There are risks to investing in the stock market (you can get back less than you put in). But there are also risks putting cash in a bank account -- you WILL get less than you put in -- don't forget inflation.

But once you've put your money in equities forget about it. And don't think you can touch it if you need to.

The equities risk reduces over time (or so history tells us, but will that apply for the future?). So if you think on the 15-20 year horizon you should be doing very well.

Free money, free money, free money. Can't stress it enough. If your employer is *giving* you more money take it!

When investing in the stock market always ALWAYS reduce your costs. Tracker funds are the way to go. Getting your costs down to 0.5% is the target to aim for. Hargreave Lansdown's HSBC trackers (the Pacific Index is one example) have an annual charge of 0.25% and a TER of 0.37% -- so getting there.

IMHO don't use fund managers -- they steal your money and don't give you the returns you want. And for those that disagree name some managers who have beaten the market over the last 15-20 years.

Suarez

Spoonhead88 wrote: »

once i have saved up my allowance where do i go from there?

If you are saving £500 a month you will save £6000 in a year. Fill your ISA (5340) this year then after April 2012 continue to use your next years allowance..

CLAPTON

not really enough information about yourself

-do you own a property i.e do you have a mortgage?
-do you contribute to a pension?
-are you young or near pension age ?

Spoonhead88

not really enough information about yourself

-do you own a property i.e do you have a mortgage? Nope And nope live with parents
-do you contribute to a pension?
Nope
-are you young or near pension age ?
23 which feels old but i guess is still young

Working 40+ hours a week earning 14.5k gross per annune