What to do with my 30k Savings?

richdeniro

Hi There,

I was just looking on here for some advice really. Apologies if the post rambles a bit.

I currently have just over 30k in a Cheshire building society ISA (paying 2.25% I think).

I've been saving over the past 5-6 years or so so I could buy my first flat. However last year events conspired against me and I was made redundant from a decent paying 40k pa job and so for the past year I have had no option but to temp off and on for £14-16 an hour in various finance roles. I have also had to move back in with my parents at age 32 as I don't want to lose everything I have worked for over the past few years on paying rent and expenses.

Obviously I am looking to find a perm role and have been for the past 18 months but when/if it happens I don't think I'll get near the 40k salary mark and so 25-30k is more realistic which of course will limit the amount I can borrow. I live in London and so the type of flat I can buy with this salary/deposit will be limited.

So basically I am unsure what to do with my ISA savings. I recently read 'Rich Dad Poor Dad' and am now wondering if buying a property is the way to go especially as I have no idea when I'm going to be able to get a job to make that happen. The £600 or so yearly returns from my ISA seem so small and I'm now thinking that perhaps the way to go would be to cash it in and put it in a variety of funds and stocks?

I guess what I'm asking is what would you do if you were in my shoes?

ChopperST

Your money is losing in real terms due to inflation and if it is for a house deposit even more so due to house price rises.

You are in a difficult situation TBH as you wont get a mortgage without a FT job but you don't really want to risk your money in the stock market as it is for a specific purpose i.e your house deposit.

2.25% tax free is a reasonable return for cash at present and you have a large sum which is shielded from tax.

If your goal still is to buy a property then keep your money in cash, if you want to look at renting you could look into investing the funds to beat inflation.

I guess your focus in the short to medium term is to secure FT employment and take things from there and then reassess your goals / needs.

GL