How to turn £50K Into £100K in one year?

mrshavisham

My husband and I both work full time. We want to save up to 100K towards a house by June 2017. Other than saving £8 300 every month from our salaries - what else can we do to reach this goal?
I think we can comfortably put away £2000 - 2500 pcm without resorting to toast and beans.
Is there another way we can invest what we have so far in order to boost our income and reach this goal?

I have looked at interest rates and they are really low.
I have also seen something about a "help to buy ISA" - so that would add £3K.

Do you think this is possible? Help . . .

somethingcorporate

Not without exposing that to a HUGE amount of risk.

If you are not happy to risk your capital you won't do much better than the best of the current interest rates (and sign-up bonuses etc).

mrshavisham

What would you suggest?

lovinituk

Red...no...black...!

DomRavioli

mrshavisham wrote: »

What would you suggest?

Speak to an IFA (independent financial planner). They can help you with your decisions, not an internet forum.

dave2319

It depends what you want to do with your money, mrshavisham. If you're wanting to invest, which would mean taking some risk, then an independent financial advisor might be useful, but if you're wanting to save and not get involved in risk then you probably don't need one, although this guide tells you more about when to use them:
http://www.moneysavingexpert.com/savings/best-financial-advisers

I agree with somethingcorporate, that it's not possible to get 100k in a year from saving (ie, non-risk) so if you don't want to take any risk, other options could include this "Do a Money Makeover" here:
http://www.moneysavingexpert.com/family/money-help

Of course it's very unlikely to net you another 60-70k or whatever, but you never know what you might find and I think it's worth doing anyway, whatever you manage to get out of it.

Also, just out of interest, is there a reason (that you want to disclose in here!) for looking at June next year for reaching the target? And how flexible can you be with it?
Just thinking that since you're in a very nice position of being able to put aside 2.5k every month, you could reach the target in about 3 years without having to take any risk at all. And some risky investments might require money being tied up for that amount of time anyway.

mrshavisham

Thank you for the advice.
I would rather not wait 3 years.

bengalknights

It all comes down to if your willing to lose it all there are safe ways that will get you little and then casino type risks where it will be 99% chance off loss.

If you want the low risk option go for government bonds countries such as Brazil offer upto 13% however its currency dependant.

Wizzbang

mrshavisham wrote: »

Thank you for the advice.
I would rather not wait 3 years.

I would think about this all very carefully- most of us would love to have what we want NOW. However, it may be more sensible to save and wait. I won't sound my age when I say this because I'm young and I subscribe to the old-fashioned view of saving up until you can afford something, but you probably don't want to hear that kind of wise advice. You will appreciate owning your own home all the more if you have waited and saved and not got into ridiculous amounts of debts to do so.

It sounds like you are both on very nice salaries (I am guessing that you make around £50,000+ per annum if you can save that amount), so I would suggest to you the Dave Ramsay school of thinking. "Live like no-one else now, so that you can live like no-one else later on". If you insist on reaching your goal in the time frame you set out, then you are going to have to make radical changes. I would suggest you buy his book, though similar information may be available on his website. It will involve radically down-sizing your accommodation to the cheapest possible option for the time being. Getting rid of any vehicles that are on finance, selling anything you don't need, going without things that aren't strictly necessary, eating more simply etc etc etc. If you make those changes, I estimate you will have achieved £35,000 in a year, possibly slightly more- depending on just how frugal you can be. So it won't take you much over that to achieve your goal.

dave2319

If there's no particular reason for the target date of next June, I'd alter it to a simple "within 3 years" and take the pressure off yourself. Particularly given that you'd almost certainly need to risk some money to achieve the target in under a year, but with your situation there's no need to be risking any money at all.
You'd reach the 100k in 3 years and 4 months if the only thing you did was set aside 2.5k a month, and as Wizzbang says, and the money makeover guide shows, there are loads of things you could do to easily reach that amount in under 3 years without any risk.