What to do now with a spare £700 per month?

jammiev

Hi all,

I wasn't sure where to post this as its just a general question and would like some of your thoughts.

I am finally debt free! In a nut shell; after paying my rent (renting a room with a friend) and the child maintenance and bills I have a spare £700 per month.

What should I do with it?

I have no savings, house or assets but I am saving £150 per month on a sharebuy scheme.

I am 43 years old.

I simply don't know what to do next? Should I save up for a deposit on a house? or save up to buy something else?

Should I save up and go on an amazing holiday?

Should I invest in something?

I am thinking of retiring slightly early, say 55 or 60 and possibly sailing for a few years!

Thanks

lincroft1710

jammiev wrote: »

I am 43 years old.

I am thinking of retiring slightly early, say 55 or 60 and possibly sailing for a few years!

Thanks

Retire at 55 then if you had saved £700 pcm for 12 yrs, you would have £100,000 plus compound interest. May be enough to buy you a boat and equipment and sail off into the sunset?

Wizzbang

What should I do with it?

What are your goals?

I have no savings, house or assets but I am saving £150 per month on a sharebuy scheme.

What does that lead to for you?

I am 43 years old.

I simply don't know what to do next? Should I save up for a deposit on a house? or save up to buy something else?

Depends where you live, if you save £700 a month for 10 years, you'd have £84K. How much do you need as a deposit for the kind of place you'd like to live, in your area? The more you can put down, the less mortgage you'll need.

Should I save up and go on an amazing holiday?

Do you want to? How does that sit with your other goals?

Should I invest in something?

Probably not, given that this £700 a month is all your spare cash, it's too risky. It sounds like you probably want to save for a house, which could be considered an investment in itself. However you should firstly aim to save up an emergency fund, so you can cover yourself for at least 6 months of earnings and other expenses, should you fall ill or lose your job. Once you've done that, start to save up for whatever you've identified.

I am thinking of retiring slightly early, say 55 or 60 and possibly sailing for a few years!

How do you plan to fund that?

mikep22

jammiev wrote: »

Hi all,

I wasn't sure where to post this as its just a general question and would like some of your thoughts.

I am finally debt free! In a nut shell; after paying my rent (renting a room with a friend) and the child maintenance and bills I have a spare £700 per month.

What should I do with it?

I have no savings, house or assets but I am saving £150 per month on a sharebuy scheme.

I am 43 years old.

I simply don't know what to do next? Should I save up for a deposit on a house? or save up to buy something else?

Should I save up and go on an amazing holiday?

Should I invest in something?

I am thinking of retiring slightly early, say 55 or 60 and possibly sailing for a few years!

Thanks

Feel free to transfer it to me?

But this is the wrong section of the forum for such questions - surely there is an investment section somewhere?

jammiev

Wizzbang wrote: »

What should I do with it?

What are your goals?

I have no savings, house or assets but I am saving £150 per month on a sharebuy scheme.

What does that lead to for you? In about 4 years I will have shares worth £10k.

I am 43 years old.

I simply don't know what to do next? Should I save up for a deposit on a house? or save up to buy something else?

Depends where you live, if you save £700 a month for 10 years, you'd have £84K. How much do you need as a deposit for the kind of place you'd like to live, in your area? The more you can put down, the less mortgage you'll need. I could get a nice house for £170k. 5% deposit would be about £9k.

Should I save up and go on an amazing holiday?

Do you want to? How does that sit with your other goals?

Should I invest in something?

Probably not, given that this £700 a month is all your spare cash, it's too risky. It sounds like you probably want to save for a house, which could be considered an investment in itself. However you should firstly aim to save up an emergency fund, so you can cover yourself for at least 6 months of earnings and other expenses, should you fall ill or lose your job. Once you've done that, start to save up for whatever you've identified.

I am thinking of retiring slightly early, say 55 or 60 and possibly sailing for a few years!

How do you plan to fund that?

I'm not sure. I could possibly rent out my house or just save up?

jaydeejay

I would suggest posting in Savings and Investments board or Pensions board.
JDJ

Kayalana99

I don't think anyone can answer this for you. It entirely depends on you and what you want.

If the question was, I have 700 spare a month to invest what should I invest in? People might be able to give you good advice...but asking if you should save for a house or a holiday is open ended etc.

I would break it down personally though so 250 spending money, 250 general savings (i.e xmas, birthdays car breaking down, holidays) then with the last say 200 I would put that towards something bigger like to invest or whatever my goals were at the time..but that's just me

LeagueOfWolf

I would learn a new skill start up a hobby something like singing lessons piano.. or sculpture ceramics etc which are the things that I enjoy doing

Li0nhead

Emergency fund.

Those on other sites I go on recommend building up a fund of 6 months wages to cover emergencies. Personally I recommend saving up 3 months wages.

Play the current accounts offers to get linked savings accounts of up to 5% interest.

Other ideas: maximize pension contributions to your employer max matched contributions. It's effectively a tax free deferred pay rise.

Save into a help to buy ISA or lifetime ISA if you qualify.

Main one is the emergency fund.
Lose your job or something major breaks down or a major life change? It gives you a buffer.

Prenticebaines

£200 a month and try to max out a help to buy account, can use that to buy a house or as an investment. Two birds, one stane

mikep22

I still prefer the option that he transfers it all to me.