Young & Unsure

Boot220

Hi I'm new to this forum.

I am married and in my mid 20's with a mortgage and a average paid job.

I feel each month I could save about £200, but when I look at ISA's and peps, etc I get a little confused.

My question is simple what would you suggest I do with my £200 each month?

P.S. Please no comical answers, like give it to me.

Adam

Badger_Lady

I'm in exactly the same position and have just opened a Legal and General ISA (through Quidco for £85 cashback) with a direct debit of £200 a month.

Unless anyone here has any better ideas...

wombat42_2

Both of you should be putting money aside in a Cash ISA or hi interest savings acount so you have a decent rainy day cash buffer before you start messing with the stock market. You should have a few thousand pounds at least saved in cash before you consider the stock market.

Badger_Lady

See, here's where I get confused - I thought you could only save a few thousand pounds in an ISA..? And isn't a cash ISA exactly the same but less risky?

wombat42_2

Badger_Lady wrote: »

See, here's where I get confused - I thought you could only save a few thousand pounds in an ISA..? And isn't a cash ISA exactly the same but less risky?

You can put in £3000 in a cash ISA this year, £3600 next year and £3600 every year after that. Cash ISA involves no risk. Share ISAs are separate and different and theoretically you could lose the lot.

Badger_Lady

wombat42 wrote: »

You can put in £3000 in a cash ISA this year, £3600 next year and £3600 every year after that. Cash ISA involves no risk. Share ISAs are separate and different and theoretically you could lose the lot.

Thanks - that's what I thought. I'm quite prepared to take risk at the moment - I'm young with spare cash each month (and not a huge amount). It's possible that I could lose some of it, but also possible that I'll make more than just from cash.

I guess it depends what your savings are for: if you're using them as insurance against your boiler breaking or your cat getting diabetes, or to add to your retirement fund, then take the less risky option because you could depend on them. But (in my case) if you're just saving so you can treat yourself in a few years, take the risk.

I take your point, though - it's probably a good idea to secure some of it more safely. So, for small amounts, is it better / possible to take an additional Cash ISA or a high-interest regular saver?

debbie42

Badger_Lady wrote: »

I take your point, though - it's probably a good idea to secure some of it more safely. So, for small amounts, is it better / possible to take an additional Cash ISA or a high-interest regular saver?

In one financial year, you can take out both a mini-cash ISA (3K max) and mini-share ISA (4K max). That is unless you take out a maxi ISA. You can't open both a min and maxi in the same year. So, if you've only taken a mini share ISA you'll still be able to take out a mini cash ISA.

As has already been suggested, I make sure I have access to an emergency cash fund before investing in shares. It depends how much you feel you need, as liquid funds.