Complete Beginner - Pensions or Savings?

Amberry

Hello everyone,

I am new to the forums and have just spent a few hours reading through threads and am inspired - especially by James240!

My financial position is not bad - but I've been humbled by everyone elses efforts into realising that since I graduated Uni and started my relatively well paying job that I haven't improved my position in the 2 years and have basically wasted a lot of money.

My overall position is:

Net take home pay: £1,595

Overdraft: -£2,000 ( monthly charges about £12 as odraft limit at 0% is £1,00) THis hasn,t shifted at all since I graduated.

Student Loan : -£15,000?? (I think?!) - (£95 goes out of my sal mthly but haven't had a statement yet to see if i've made a dent)

0% loan to my ever kind mother: -£800 ( I pay her back £50 per mth)

I got paid today and have made myself a realistic budget which lets me pay off £50 from my o/d this month but this will hopefully be £200 per month from oct onwards. Will also read up on Quidco to see if this will help me.

Once I pay off my overdraft (which I hope to do as soon as possible using hints and tips from this website) I want to start saving for a house deposit.

What I would really like advice on is:

My company pension scheme (which i'm already a member of) is changing next month so that if i pay more - they will (they match my contributions plus 1% up to 6%). At the moment I only pay 2% so if I wanted to make the most of this I would need to pay 5% - which would make a noticeable difference to my take home pay.

I'm a bit confused about what my priorities should be. I THINK I should focus on repaying my o/d and loan to my mom first, then start saving for a mortgage and ignore my student loan as it's relatively low interest. But is it stupid to give up free money from my company in pension contributions? Especially as they will grow tax free until I retire?! (I'm 25 now).

Any advice would be much appreciated.

Thanks!

Amberry x

postingalwaysposting

my opions ~ they are only opinions you must decide for yourself...

1) get debt free ~ most important imo however dont pay your student loan (see martins articles)
2) up your pension a little ~ you are effectively getting free money and also with the way the government are going with pensions if you dont start now you wont have enough to survive on when you retire
3) save ~ cash isa first = £3k then regular saver with high interest, maybe a locked saver?