New Saver

Iwillresolvemydebt

Hi,

I will soon be starting a new job where I will receive almost double my previous salary. Clearly, due to tax, NI, company car tax and childcare I will not be receiving double at the end but have worked out that I will comfortably have a £500 excess to my monthly needs. I now have all of my debt controlled, in terms of anything left, I am not paying interest on and am paying a decent amount out each month to cover these.
With this in mind, I was wondering how best to save for the future; I am keen on putting some away for both short term (car repairs/replacement bits and pieces for the house etc) as well as longer term for future stability and perhaps a decent amount to pass down to kids/grandkids when the time comes...

How would I best go about this? I am 33 and have a terrible credit rating which will not be fixed for a minimum of six years

Your help is appreciated as I don't know where to start!

Thanks,

Paul

Tiglath

If I were you, I'd work out how much I need in an emergency fund to cover things like the boiler breaking down or covering living costs for a few months if my job went pearshaped, and then I'd plough the rest into paying down the debt as quickly as possibly.

[Deleted User]

Hi,

you could have a look at Martin's starting saving tips.

AlwaysLearnin

If you have a plan to have paid the debt before the zero interest runs out then that should be fine. You'll also then have more saving (i.e. no more debt payments)

What sort of pension does the new job come with? If you can have additional contributions matched by the employer it's essentially free money.

atush

Yes, have you joined the company pension scheme? Hwo much do you/they put in each month as a %? Is this your first pension? What rate of tax will you be paying? Do you have a mtg? What rate is it?

Otherwise, start saving in cash until you have 3-6 months spending saved for emergencies. Use yours and your OH's Cash ISa allowances for this. Then start using your S&S isa allowances, along with overpaying a mtg, etc.

Thrugelmir

Iwillresolvemydebt wrote: »

I now have all of my debt controlled, in terms of anything left, I am not paying interest on and am paying a decent amount out each month to cover these.

If you are in a DMP. Then it's worth paying extra to clear the debt quicker. As until it's cleared your credit profile will remain damaged.