25 year old in need of advice for saving for the future/a property

london-butterly

Hi,

I am 25, have just finished studying and am currently living with my parents. Whilst looking for a full time job I am working in the part-time job that I have had while studying and save £500 a month.

My career choice means that I won't be earning a decent wage (20k+) for at least the next two years. However, I do hope to work part-time and use this money to continue saving once I have a full time job.

My current savings are:

£7500 towards a deposit (ISA)
£2000 emergency (1/2 in easy access and the other 1/2 fixed for 2 years)
£1500 for holidays and small savings goals (easy access)

I know I need to increase my income but my question is how can I best increase my savings. I am not adverse to some risk so have been thinking about a stocks and shares ISA, particularly the
Virgin FTSE All-share Tracker (ISA) or would it be better to keep all savings as cash for the next 5 or so years? I would like to start a small portfolio for long term saving but am not sure if starting this now would be counterproductive.

My goal is to buy a property within the next 5-7 years and have long term savings. Obviously everyone is aware of the London property market so I'm concerned as to how I will be able to save the £50k+ required deposit.

Thanks

xylophone

5-7 years is a very short period if you are thinking of investment.
If you are saving for a deposit on a house, save as much as you possibly can into the cash ISA each year?
Any money over and above the cash ISA allowance you could save regularly into a stocks and shares ISA - for a number of years I have used Invesco Perpetual Distribution as my basic. Some old and not so old family members have also used this fund and while not a high flyer, has given steady performance.
http://www.hl.co.uk/investment-services/isa
http://www.cavendishonline.co.uk/investments/our-service/

Otherwise you might look at an equity income fund or at regular investment in an investment trust through a stocks and shares ISA? http://www.investorschronicle.co.uk/2012/10/22/funds-and-etfs/investment-trusts/saving-with-investment-trust-schemes-MK45n2eWPDIDADhAAdzdWJ/article.html

Alex92_2

£50k as a deposit for London? I thought you'd be looking more at 80-100k? I'm saving for a deposit in Surrey at the moment and with everything involved + deposit I have estimated it to be around 65-85K needed with enough emergency funds left over afterwards.

Make sure all your money is in the best rate banks for now and you are using quidco cashback offers/incentives if you arent already. I dont know enough about investments because I plan on buying a place within the next 2 years so its not long enough to justify the risk/reward aspect.

iAMaLONDONER

Alex92 wrote: »

£50k as a deposit for London? I thought you'd be looking more at 80-100k? I'm saving for a deposit in Surrey at the moment and with everything involved + deposit I have estimated it to be around 65-85K needed with enough emergency funds left over afterwards.

Make sure all your money is in the best rate banks for now and you are using quidco cashback offers/incentives if you arent already. I dont know enough about investments because I plan on buying a place within the next 2 years so its not long enough to justify the risk/reward aspect.

Barking and Dagenham isn't that expensive.....

atush

5-7 years could be short for investments, but I would invest some of your money going forwards (but perhaps not all- try 50%).

But, although the allshare is better than the 100 i'd look at a global tracker, or a series of trackers. Not just uk centric.