What to do next

AdmanPea

Hi all
I was just hoping for some advice based upon my current financial circumstances as to what to do for the best.

My current job is salaried around 40k a year and after company car, student loan, pension etc... comes out, this equates to around £2200 a month. Other than my student loan (about 18k but don't view it as debt more of a graduate tax) and my mortgage, I do not have any debt or card payments. I live in a flat and currently owe about 61k on the mortgage and my payments for this are about £240 a month.

Savings-wise, I have about £10k saved (including a 1k emergency fund). I don't do a strict budget but I do put £250 a month into a regular saver account. My current circumstances mean that I can and inevitably do save more money than this each month though.

The way I see it, my options are to keep increasing the money I have to one side, invest in something (although I'm new to that) or use additional funds to move into a bigger property. I seesaw on this one a lot as I could buy a house but I don't 'need' a house. I sort of feel the longer I sit tight the more I save but I'm not entirely sure what I'm saving for or if I am maximising what I'm doing. I could overpay on mortgage I suppose and then if I do move it has more equity in it anyway.

Thoughts? Thanks in advance.

badger09

You have £10k savings, presumably easy access, so that's probably adequate as your emergency fund.

You haven't mentioned pension. That's an obvious suggestion, due to the tax relief, and you're never too young to start.

S&S ISA for longer term savings?

Unless your mortgage is at a very high rate, paying extra into that is probably not the best use of extra cash, unless a much lower LTA will get you a much lower rate and you want to move up the ladder.

AdmanPea

Thanks!

I currently pay into an occupational pension? It's final salary but no doubt once I get there it won't be!

With regards to the S&S ISA, would this be built up with additional funds away from what I already have saved?

xylophone

You are single and in a job which keeps you travelling/ working late etc so that a flat is a practical proposition (easy to manage/no gardening etc).

However, this does not rule out a house - and if you chose one with three bedrooms, you might consider taking in a lodger on the rent a room scheme?

You might consider starting a stocks and shares SIPP. Example

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-open-an-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/

You could contribute on a monthly basis.