£2000 what can we do with it

BrookesAndrew

Me and my Mum are trying to save as I must say my Mum has done quite well and she has saved £2000. I my self have only saved a £100! My mum is always asking what should she do with her £2000 and I don't really know. I always think well it isn't that much so what could she do with it. I said she could invest it in stocks but she would need to be prepared to loose it. She said she doesn't think that she could take that much of a risk with it.

What can she do with the £2000. What is the best thing that she can do? I would love to hear your thoughts.

Thank you all in advance,
Andrew

p00hsticks

A few questions to be able to help ...


What is the purpose of her savings - is she saving up for anything in particular ?


When is she likely to want to spend the money ?


Could she afford to lock it away for a number for a number of years or might she want to dip into it at any point ?


Is she a tax payer ?

BrookesAndrew

Yes she is a tax payer. She is saving up so you can settle her loan. She would need about £4500 to settle the loan. I have asked her would she be prepared to lock the money away and she said she would be. She doesn't need to dip into it at any point. I think she just wants to to be making money and not just sat in a Cash ISA earning hardly any interest.

opinions4u

Contingency fund (easy access ISA). Then clear debt. If she wants to be exciting stick £500 in a low charge stocks and shares tracker fund.

HappyMJ

Can she make extra payments on the loan? Some loans charge daily interest so the more that is paid off the less interest is charged overall reducing the term.