Saving a small amount over a long period of time, need guidance please

khampson

Eco_Miser wrote: »

Open a TSB Classic Plus, in addition to your Halifax Reward. Remember to opt for paperless statements AND communications.
Move your £400 rainy day money into it.
Each week (I presume you are paid weekly) move £125 from Halifax to TSB and £105 (or less to save more) from TSB to Halifax.
When you have a reasonable amount, perhaps after a year, decide how much you want to keep as instant access rainy-day money, and use the rest to buy an investment fund.
Keep saving, and periodically add to your investment.


Yes, depending on who is saying it.

I'd go for 6 months of bills, including annual bills, Christmas spending, and enough to replace at least one large appliance.
While saving to invest is important, I think it's more important to be able handle life's little emergencies, and certainly all predictable expenses, without having to borrow.

I'm am actually paid monthly but until this job I was paid weekly so what I do I pay all the monthly bills and then pay myself spending and savings every friday. Doing it this way I dont over spend early on

planteria

i would look at putting up to £25/month into a TESP with a friendly society. there is a thread in the Tax Free Savings forum with more info:)

lawriejones1

The whole 'emergency fund' thing is confusing.

Basically, save up a decent amount in a place that's easy to access (interest paying current account). These are still savings, they're just easy to get too in an emergency.

When you have what you consider enough (£3,000 is enough for me), then you can invest the rest should you wish.

I have money in funds and, if you want, you can add from as little as £25 per month into funds through Hargreaves Lansdown.

Eco_Miser

khampson wrote: »

I'm am actually paid monthly but until this job I was paid weekly so what I do I pay all the monthly bills and then pay myself spending and savings every friday. Doing it this way I dont over spend early on

Sensible. However putting your planned savings away just after payday means they're in the interest earning account for longer, and there's less in the day-to-day account to make you think you've spare money.

jimjames

planteria wrote: »

i would look at putting up to £25/month into a TESP with a friendly society. there is a thread in the Tax Free Savings forum with more info:)

Terrible advice, yet again.

Totally inflexible and massive charges. Why do you keep ramping these inappropriate products?

A S&S ISA can have investment from £25, far lower charges but more importantly complete flexibility to stop, start and vary the payments as well as withdrawing money should it be needed in emergency.