How to divide up savings and investments, short term?

plarka

I want to emigrate back to my home country (USA) asap, and with the money I can save, the soonest it will be is about 6 years if I count inflation a bit. I have a small business where I currently earn about £500/mo. My husband's salary pays for us just to live and pay the mortgage. I need to save up about £25,000.

I can either save my money in ISA's (a 2 year fixed rate 2.5% and a 5 year fixed rate 4.5%), invest in my FTSE All Share Tracker, OR make my life better now and use it all to rent out our flat and rent a house (we have 2 kids and it's getting crowded)

I don't know if this makes sense and maybe I'll need to reword it later, but is it better to live in a place I don't like, rather than renting a nice house, for a long time (about 6 years) and save and invest, and is it better to save it in ISA's so I know I will have the money (since it's for a specific thing I want) or spread it out into investments as well? And should I be learning about more investments instead of just using this FTSE All Share Tracker?

atush

Well i can't see you saving 25K in 6 years if you spend your money you are meant to save on renting a bigger house.

Can you sell the flat?

Basically, if you need 25K in 6 years you need to save a min of 300+ a month maybe up to 340 if interest rates keep going down and you save only in cash.

If you are going to invest any rather than save, it would need to be this year as you need more than 5 yrs for it to run.

I am not real clear what your objectives are here.

plarka

I know, I'm kind of mixed up and all over the place, but your answers were very good and make sense! I think I need someone to say, 'yes it's a great idea to live in a place you hate so you can save money to get out of there, it's worth it, you can do it!' I need to hear of people who have done it or are doing it! New post I think.

innovate

Surely you wouldn't let some strangers on the Internet tell you whether you will be happier saving £25K so you can fund your emigration plans, or living in a rented house that provides more space for your family. It's something that I would chew over and conclude upon with my husband if I were you.

plarka

innovate wrote: »

Surely you wouldn't let some strangers on the Internet tell you whether you will be happier saving £25K so you can fund your emigration plans, or living in a rented house that provides more space for your family. It's something that I would chew over and conclude upon with my husband if I were you.

Yes I would! my husband doesn't care either way, I need someone else to chew it over with!

srcandas

plarka wrote: »

Yes I would! my husband doesn't care either way, I need someone else to chew it over with!

I'll chew it with you

I have gone through periods of life not really living waiting for a change. And looking back it isn't worth it.

Not saying spend today and starve tomorrow but each day of life is precious. And tomorrow may never come.

Six years is a long time and there is no guarantee your plans will workout. It might be in 6 years your views, and those of your family will change. What about your children's education, friends, hobbies? Will they want to go?

As always it is a balance that needs to be struck but when your kids fly the nest you may well look back and wonder what might have been. Has living in a restricted space impacted on them?

The other thing that strikes me is what is it that draws you to the states and are these things shared by your family? Would a better happier life where you are now lessen your desire to fly home? Would a few US holidays help?

I will soon live in Spain with my spanish wife and her family. It would not be my choice. But looking for positives and being determined to make a success of it, has set a challenge which I now relish. I will still return to my beloved England from time to time but I will try to fully integrate into Spanish life.

HTH but probably sown more muddle :rotfl:

atush

well, you could get to 25K savings just 300 a month, if you invest it in longer term accts perhaps?

If so, that gives you an extra 200 a month to put into somewhere larger. In rent or increased mtg if you sell?

Or to put into an allotment plus some other things like memberships for the kids (ie getting out of the too small house?)

PS as an american I found it hard when the kids were small and I couldn't get home very often as could not afford it. Now I have a small home there, and that helps. I don't miss it so much.

plarka

srcandas wrote: »

I'll chew it with you

I have gone through periods of life not really living waiting for a change. And looking back it isn't worth it.

Not saying spend today and starve tomorrow but each day of life is precious. And tomorrow may never come.

Six years is a long time and there is no guarantee your plans will workout. It might be in 6 years your views, and those of your family will change. What about your children's education, friends, hobbies? Will they want to go?

As always it is a balance that needs to be struck but when your kids fly the nest you may well look back and wonder what might have been. Has living in a restricted space impacted on them?

The other thing that strikes me is what is it that draws you to the states and are these things shared by your family? Would a better happier life where you are now lessen your desire to fly home? Would a few US holidays help?

I will soon live in Spain with my spanish wife and her family. It would not be my choice. But looking for positives and being determined to make a success of it, has set a challenge which I now relish. I will still return to my beloved England from time to time but I will try to fully integrate into Spanish life.

HTH but probably sown more muddle :rotfl:

Very wise words. Thank you so much!