Need a savings strategy

Tonks52

Looking for some help please on putting together a savings strategy.

I currently pay money each month from my company into a SIPP.

Within my take home salary I try to employ this strategy:

40% - Fixed costs
30% - Variable costs
20% - Savings
10% - Pension

I have a personal pension which I pay into which is where the 10% comes in. I was thinking of including here within the 10% the lifetime ISA and paying a token amount in to that.

What I am asking is out of that 20% what would be a good strategy?

I have a lump sum saved up which is my fund for if I lose my job etc, so should cover between 3-6 months of general living. What I’d like to do is put this somewhere safe which I can access quickly if needed to – any suggestions here?

Secondly, of the 20% which I would like to save each month on top of the lump sum mentioned above what would be a good split here? I’m thinking this would be my fund for holidays/new tv etc. But what would be a good split? X% into cash ISA – Y% stocks and shares ISA Z% another saving method?

Just trying to put some structure and strategy around my finances.

Any help gratefully appreciated!

AlanP_2

Think about Savings (cash) and Investments (S&S etc) as two different things.

Cash for foreseen, semi-immediate needs e.g. new TV, holidays etc. in interest paying current accounts, regular savers and so on.

longer term "savings" in investment options such as S&S via an ISA or pension preferably.

What are your timescales and are there "fixed date" in mind?

BTW - How often do you need a new TV or is there just a current "want" to upgrade yours :-)

Tonks52

Thanks for the reply Alan.
Aren't interest paying current accounts abysmal in terms or rates?
No timescales, and i dont need a new tv, was just trying to give an example of the sort of 'things' that might come out of that savings account...

AlanP_2

Depends on what you mean by abysmal. You will do well to keep pace with inflation on cash savings to be honest.

Depends how much you have and who you are with. First Direct still do a 5% regular saver but teaser rates in general seem to be coming down.