Kind of newbie after savings tips.

loken152

Hi all, over 10 years ago i was a very good saver whilst i lived at home with my parents and was doing my training. Then me and my now wife moved into together. We then build up debt, across credit cards, personal loans and car finance. Over the last 2 years we have been clearing all our debt and want to lead a debt free life style. During this 2 year period we only had one income, as we decided that its best that she was a stay at home mum after the birth our 2nd child and that our oldest was starting school. She has now started a part job with the NHS that work's around the rest of us.
So next month will be our last payment to the final debt and we plan to start saving. with two incomes, we should be able to save approximately between 800-1000 a month depending on overtime etc. The 1st target is for us to build up a larger emergency fund from 1000 to at least 6 months worth of house hold expenses.
The next step, we want to start the following at the same time and at the moment regular saving accounts seems to have the best interest rate for what we want to achieve.
One account to be used for saving towards cars and cars repair etc.
Two to save towards saving a deposit for a house 5 years down the line. The help to buy ISA seem to have a poor interest rate, so we think another Regular saver.
Three been looking into stock and shares ISA to be used for life time savings, with the idea to use this when we retire. I already have a pension that i am paying into, i am sure my wife will have one with the NHS. So this will just add to that.
We already have ISA for both our children, so we will keep up the regular payments into them.
We haven’t decided what kinda of account to use for the following, but we want an account to use for short term idea’s such as cloths for the kids, fun days out and holidays.
Does this sound like a reasonable plan? Any other ideas?

cjv

If you and/or your wife have not purchased a property before and are under 40, the LISA should be a good choice for saving towards your deposit

Also congratulations on becoming debt free!

loken152

cjv wrote: »

If you and/or your wife have not purchased a property before and are under 40, the LISA should be a good choice for saving towards your deposit

Also congratulations on becoming debt free!

Haven’t looked as LISA, but isn’t that the Lifetime ISA? Ill have a look at it.

Eco_Miser

loken152 wrote: »

The next step, we want to start the following at the same time and at the moment regular saving accounts seems to have the best interest rate for what we want to achieve.
One account to be used for saving towards cars and cars repair etc.
Two to save towards saving a deposit for a house 5 years down the line.

It's a great idea to have separate savings pots for different purposes. It's not such a good idea to physically separate those pots into different bank accounts, especially if those accounts have restricted access (many regular savers have costly or no access during the term).

loken152 wrote: »

The help to buy ISA seem to have a poor interest rate, so we think another Regular saver.

It doesn't matter what the interest rate is, you get a 25% bonus when you buy your first dwelling. After five years of saving, that's about 5% pa. Use a pair of LISAs instead and save more and get 25% bonus on more - up to £1000 a year. Between the two of you, you could save £8000 + £2000 bonus = £10,000 a year in LISAs.

loken152 wrote: »

Three been looking into stock and shares ISA to be used for life time savings, with the idea to use this when we retire.

Good idea, but wouldn't securing a home first be better?