First Job - Where to put money

aled123

Hi all,

This is my first post although I have been stalking the forums for months!

I've recently started my first 'proper' job out of university, just a little background, I'm 23, currently live with my parents, I earn £26,500 annually with monthly outgoings as follows;

Fuel: £200 (car is economical although my commute is 90 miles/day sadly)
Car payment: £150
Misc: £50

I'm a bit confused by where would be the best place to put the bit of money I do have at the moment (around £10k) - from looking around it seems that a lifetime ISA might be the best way forward as I will definitely be looking to buy a house in the next few years.

But with the various options out there, it's a bit of a daunting task to decide where best to put my money, at the moment it's in a current account which is doing nothing for me. I was wondering whether anyone on these forums could shed some light on what might be the best option for me - as there seems to be a lot of ridiculously knowledgeable people here!

Thanks in advance guys :beer:

Squirrelz92

Placing the maximum allowed of £4000 right now into a LISA would be a certain for sure. You will be eligible for the 25% on this amount at the end of this tax year so get cracking with that asap! As soon as the 6th April hits, you can max out your £4k limit again with the LISA earning you another £1000 for free at the end of April 2020.
After this I would at the very least recommend opening either a fixed rate cash ISA or an easy access ISA depending on whether you would feel the need to dip into your savings at some point in the next 12 months. The interest rates are naturally higher for the fixed but with Coventry Building Society the easy access ISA is a great 1.5% at the moment and that's fixed for 12 months.
If it's any consolation, I have just done the above! With £14,000.
Hope this helps!

eskbanker

http://www.moneysavingexpert.com/savings/which-saving-account navigates through the available options in a logical sequence....

george4064

Money aside, I would strongly recommend you either look for a job nearer to home or look to move out of your parents to somewhere nearer your work.

I know moving out from your parents will cost you rent, but there are non-financial benefits of moving out such as more independence, potentially better social environment etc...

aled123

Thanks for the reply - I am actively looking for jobs nearer to home, I have lived away from home for 4 years in university so I know what it's like to have independence

MallyGirl

make sure you are contributing enough to the pension scheme to get the maximum from your employer

xylophone

I am actively looking for jobs nearer to home, I have lived away from home for 4 years in university so I know what it's like to have independence

Living on baked beans and making the acquaintance of cigarettes 'n' whisky "n" wild, wild wimmin but decided that having mum on hand makes for a better lifestyle altogether?:)

If I were in your position, I'd certainly make full use of the LISA.

Have you ever had a Nationwide Flex direct account?
If not, consider opening one - you could deposit up to £2500 at 5% for a year and take advantage of the Regular Saver as well.

It is easily funded by transfer in/out of £1000 a month from a non Nationwide account.

You might also look at a TSB Classic Plus account.

aled123

MallyGirl wrote: »

make sure you are contributing enough to the pension scheme to get the maximum from your employer

Yeah that's one of the first things I did, I currently contribute 6% and my employer 11%

crv1963

A few tips-

1) As above for the LISA.
2) Try to save what it would cost you for Mortgage payments on a monthly basis so when you get one it doesn't hit you as hard, and has the bonus of either increasing your deposit or as a fund to furnish/ decorate it.
3) When you buy, if not moving in as part of a couple, get a flatmate/ housemate to reduce your costs- rent a room can earn you 7500pa before you need to pay tax on it.
4) Try and increase your pension savings by a few percentage points- that little extra loss to spending now will be a godsend when you hit your 50s- time flies it seems to my 55 year old self that it was only yesterday I was starting my working life.

Good luck and well done for looking at it now.

Doshwaster

I would set up a standing order which transfers £50-100 (or whatever you can afford) into a savings account the day after pay day. That way you can't spend the money, you don't notice it going and it will soon build up into a significant pot.

It's advisable to build a fund of 3-6 months essential living costs in case you lose your job before you start thinking about long term investments or buying a house.

atush

aled123 wrote: »

Yeah that's one of the first things I did, I currently contribute 6% and my employer 11%

Gold star :T:T