How to get myself in the best financial position for the new year?

henry114

I would like some advice on how I can get myself into the best financial position for the new year with my main goal next year being to have a considerable amount for a house deposit. I currently have a help to buy ISA which I may transfer into a LISA. I have a small nest egg/emergency fund and am also looking into investing a small amount per month into a stocks and shares ISA (£100). Has anyone got any tips on how I can best achieve my goals? Any saving tips or general advice?

Alexland

Being in the most optimal financial position isn't just for Christmas - it's a constant challenge to take advantage of changes in the market for the rest of your life.

My advice is to maximise you income, minimise your outgoings and compound the money in the middle wisely.

What is your realistic timeline for buying a property? This is important in determining the risk of using stock and shares.

Ps - so far on what you have said this thread looks similar to your previous one?

Alex

henry114

Hi Alex,

Yes it is similar! I'm new to this and have recently come away from spending/wasting a lot of money in my early twenties and I want to be more heads on and in control with my money so just trying to get a lot of advice in!

Realistically I would say that with a years worth of focused saving I would have the amount I am aiming for towards a house.

I'd also like to know if there are some fundamental things to do with my income and money that should always be done just so I know I'm not missing anything major!

Thank you for your advice though, you seem very clued up!

ColdIron

henry114 wrote: »

Realistically I would say that with a years worth of focused saving I would have the amount I am aiming for towards a house.

I'd also like to know if there are some fundamental things to do with my income and money that should always be done just so I know I'm not missing anything major

If you are aiming for a house deposit within a year don't use investments, stick to cash

msallen

Investing in an S&S ISA is a good long term plan, but it is very risky if you want the cash back to spend next year - S&S values tend to rise over the long term but can fall (possibly by quite a lot) in the short term.

chockydavid1983

Agreed.
If you can save the cash you need over the course of a year, do that and buy the house, then shift focus to S&S ISAs / pensions (though paying down the mortgage to get to a better LTV can get you a better mortgage rate so could also be a good option)

Alexland

It's a good time to make the most of the 1 year 5% regular savers from various banks and the Nationwide Flexdirect 5% bank account.

darkidoe

henry114 wrote: »

I would like some advice on how I can get myself into the best financial position for the new year with my main goal next year being to have a considerable amount for a house deposit. I currently have a help to buy ISA which I may transfer into a LISA. I have a small nest egg/emergency fund and am also looking into investing a small amount per month into a stocks and shares ISA (£100). Has anyone got any tips on how I can best achieve my goals? Any saving tips or general advice?

,

What is roughly the price of the property you are hoping to buy?
Then you can work out what size of deposit you require? (Rough guide: minimum 10% of property price). And subsequently, how much more you need to save on top of the £4000 per year via LISA. Then you can work out how long you need to save per year/month to build up to the required sum.

Can you afford the mortgage at minimum 90% LTV? Simple question would be how many times your annual salary it will the potential mortgage be?

Its good to start planning early for these kind of decisions. well done.

maxie014

Why not just start with £50 a month into a s&s isa,if you really want to invest at least its a start you can always up it later if youve the spare cash.