Planning for an "influx" of money

londonsurrey

Froom2 wrote: »

It's pretty rough around the edges, but yeah it's a bargain And a superb landloard along with it, who even offered to look after my hamster if we go on holiday! Hehe.

That's truly excellent. It's tickling me to imagine what a grateful hamster would buy the landlord for Christmas.

BitterAndTwisted

Whatever you do, get that "surplus" out of your current account tout suite straight after pay-day by standing-order so you're not tempted to spend it on treats you "deserve" because you went without while your OH wasn't working. I know from experience that's it's all too easy to find things to do with a decent increase in income and it doesn't take that long for your normal expenses to increase to take up the slack.

caeler

Mortgage overpayment, ISAs and rainy day money is where all my extra goes. I have harder to access accounts for my Christmas Savings and Holiday fund, I sort of forget I've got it which is nice when those annual events come around! All set up with standing orders coordinated by a spreadsheet so I can keep a check on what I've got.

heretolearn_2

It's lovely to see someone posting some good news :j

The general advice is to have 2 or 3 months income in a rainy day emergency savings fund, so your £500 won't quite do that. I used to have that much (no longer, sigh) and it does feel great to know that when the boiler disintegrates or the car engine blows up, or you are off sick and only getting SSP for a few weeks, you can cover it all. It removes a lot of worry from your life.

So build a nice pot for emergencies first off, then start stashing savings away in your ISA and for long term. And for that lovely rug you want. And I'd be planning on a nice holiday each year too.

It's great to be sensible with money and make sure you can cope with lifes ups and downs but on the other hand you can't take it with you. Enjoy! But as someone else said, make the most of it, don't let it just disappear out of your account on sky movies and extra Starbucks coffees and little dribs and drabs. It's amazing how easy it is to let it slip through your fingers and end up not appreciating it.

jason1231972

Froom2 wrote: »

It's pretty rough around the edges, but yeah it's a bargain And a superb landloard along with it, who even offered to look after my hamster if we go on holiday! Hehe.

I'd assumed you'd be renting from the council/a housing association at that rate. We rent from a HA for a little less than that (£278). Bargain, and even moreso if you're in the private sector!

As for an influx of money, remember that the more you have, the quicker it seems to go :rotfl:

Congrats on the job.

Froom2

Thanks guys really good advice here!

I have nearly 5k in my isa already (all from 'before', it's mostly gifts from grandparents) but I've been thinking of that as the start of my house deposit pot.

So this 2-3 months income buffer, stick that in the e-savings you reckon?

I am going to set up a standing order to get the cash out of my current account, that's a really good idea

I think our plan is to stay in this flat as long as we can so as to save cash

Pupnik

An ISA each and the best saving account you can find is the best way forward, since you are saving for a deposit you probably won't want to but you could also think about paying into a pension, of course retirement age could me moved up to 110 by then...

Pollycat

Glad to hear your good news about money.

Just wanted to say - do check the interest rate of your ISA, a lot have a decent rate for the first year which includes a bonus then it drops to a really low percentage.
You need to make a note of when the rate drops and look around for a better rate.
Not all places allow you to transfer money from previous years ISAs.
Check out the main board for 'best buys'.

I think that some savings accounts work the same way.
It can be a bit of a faff making sure your money is working hard for you.

FatVonD

Froom2 wrote: »

Would you recommend opening a joint savings account too?

No! You sound young and that I think increases the possibility you may not stay together so, no, I'd say keep your savings separate.

room512

Also what about premium bonds? I know that you can cash them in when you want to.