Time to actually sort my money out properly...

wildcardsa

Dear All -
I think its about time as its a NEW Year to get clever with my money.

At the moment, all I seem to do is put monthly savings (£300) into a First Direct Regular Savings Pot as that was the most it would allow. (supposed to get 5% this month for my yearly interest).
The rest simply sits in my current account. I am lucky enough to have a good salary and seem to save around another £1000 a month but like to be able to call on that in an emergency.(hence it sits in my current account)
As I don't know enough about it, I guess it makes me too scared, to shift my money about.

Any suggestions as to the best way to deal with making my money work better for me ?
PS - I did think of putting that £300 a month into an aggressive Nutmeg Portfolio instead this year and leave it for 5 - 10 years to grow? Or would it be more beneficial elsewhere?

Thanks

EthicsGradient

What are your needs for money? Are you saving for a house deposit, thinking you need more pension than you currently have, or is it just that you usually have some excess each month, and use it occasionally either for necessities (eg house repairs), or nice-to-have things, eg good holidays?

The simplest alternative to letting it build up in a current account is to put the excess in an instant savings account (or maybe look for an interest-paying current account). This will get you a little interest, while it's still available in a day or so. The FD regular savings pot does get you a better rate, though you have to leave it in to the end of the year it runs.

If you can leave the £300/month invested for more than 5 years, and don't want it for a house deposit, then a Stocks and Shares ISA would be likely to make you more. Nutmeg is unlikely to be the cheapest place for it; according to http://comparefundplatforms.com/ , investing £300/month for 8 years with a 6% return would be cheapest with Halifax Sharedealing. You could pick an index tracker; the one big decision to make is how much it invests in the UK (where, after all, most of your spending is), and how much abroad. You might have to invest in 2 index trackers to get the balance you desire, or use one fund that suits you.

george4064

I would do the following if I were you:

1. Open up an instant savings account (such as Marcus) and keep your emergency savings pot here.

2. Have a good think about your current financial situation and objective(s).

3. Consider the various savings/investing options, as well as pensions and ISAs that align with point 2 above.

Here is a link to the MSE savings page which has loads of information on different types of saving accounts: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Albermarle

I did think of putting that £300 a month into an aggressive Nutmeg Portfolio instead this year and leave it for 5 - 10 years to grow?

Better to think in terms of 10 years +

What about your pension situation at work ?

If you want to learn more about money , you can start here
https://www.moneyadviceservice.org.uk/en/categories/saving-and-investing

Eco_Miser

wildcardsa wrote: »

At the moment, all I seem to do is put monthly savings (£300) into a First Direct Regular Savings Pot as that was the most it would allow. (supposed to get 5% this month for my yearly interest).
The rest simply sits in my current account. I am lucky enough to have a good salary and seem to save around another £1000 a month but like to be able to call on that in an emergency.(hence it sits in my current account)

You're adding £1000 a month to your emergency fund? How much do you think you'll need? At the very least put most of it in an easy-access savings account at the best interest rate you can find.

You could open more Monthly (or Regular) Savers with other banks see this dedicated thread. These generally pay more than simple savings accounts, but you have to watch the T&Cs, which vary considerably - from instant access to no access until maturity - from available throughout the UK on-line to very restricted localities branch only - from exactly the same payment on the same day every month to what you like when you like, subject to not exceeding the prescribed cumulative total - tied to a current account or not tied - and of course the interest rate.

bostonerimus

Look into putting more into your workplace pension if you have one and do a budget so you can see where you waste money that could go into your pension or ISA pot.

Sheriff_Fatmen

if you want access to that money before you retire (earliest 58yrs old), put it in an ISA (mix it between stocks and cash or gilts to suit your own appetite for risk)

if you dont need access to that money it until retirement (e.g. because you will have saved more...) , put it into a pension fund as you also get tax benefits; best is by paying into your workplace pension and check that the pension is invested to suit your own appetite for risk. The sooner the better (depending how close you are to retirement)

segovia

wildcardsa wrote: »

Dear All -
I think its about time as its a NEW Year to get clever with my money.

At the moment, all I seem to do is put monthly savings (£300) into a First Direct Regular Savings Pot as that was the most it would allow. (supposed to get 5% this month for my yearly interest).
The rest simply sits in my current account. I am lucky enough to have a good salary and seem to save around another £1000 a month but like to be able to call on that in an emergency.(hence it sits in my current account)
As I don't know enough about it, I guess it makes me too scared, to shift my money about.

Any suggestions as to the best way to deal with making my money work better for me ?
PS - I did think of putting that £300 a month into an aggressive Nutmeg Portfolio instead this year and leave it for 5 - 10 years to grow? Or would it be more beneficial elsewhere?

Thanks

What not put it into a SIPP, you will get 20% tax relief immediately, this assumes you won't nee the money until you are 55 or older.

J

Flobberchops

Always tricky to give tailored advice to people when their circumstances aren't known (or are likely to change), but think about putting money in the following, the exact amounts and proportions fitting your goals and ability:
- Instant access cash
- Cash tied up in fixed term bonds or regular savers
- Funds or individual stocks held within a S&S ISA
- Pension, whether SIPP and/or workplace
- Premium Bonds


Don't use Nutmeg. Personally I use Halifax Share Dealing and make sure to use the £3.95 deals once a month to keep costs low.

Sheriff_Fatmen

@flobberchops

Do those £3.95 deals happen EVERY month with Halifax Share dealing ? And how do know when; do you get a notification email or similar?

george4064

Sheriff_Fatmen wrote: »

@flobberchops

Do those £3.95 deals happen EVERY month with Halifax Share dealing ? And how do know when; do you get a notification email or similar?

I think flobberchops is referring to regular investments which seems to cost £2 so not sure where the £3.95 number is from.

More info here: https://www.halifax.co.uk/investing/start-investing/choose-your-own-investments/stocks-and-shares-isa/