Savings advice

Maria123567

Hello,
Over the last few years I have chopped and changed through various jobs. I do not have any qualifications. I currently have savings of around 30,000 and want to ask your opinion on if this is a good amount for a 30 year old or am I in trouble. I would like to settle down into a long term job but will most likely be basic wage. Outgoings wise, just rent, council tax etc. Just trying to work out if I’m ok or if not how to preempt a financial disaster. Thanks 

benbay001

How are we meant to know if you're in trouble? Do you have debt? A house? A pension?
£30k in savings and nothing else would have me suggesting buying something with greater returns, or a house if you don't have one.

Maria123567

Hi there, no house - I rent, no debt, no pension. Was just curious if 30,000 is a good amount or not. Would you suggest buying property? I didn’t think that 30,000 would be enough. Thank you for your reply. 

eskbanker

Maria123567 said:

Hi there, no house - I rent, no debt, no pension. Was just curious if 30,000 is a good amount or not. Would you suggest buying property? I didn’t think that 30,000 would be enough. Thank you for your reply. 

Nobody can answer whether £30K is 'good' or not, although it's significantly above the national average if that makes you feel any better: https://www.statista.com/statistics/824450/average-cash-saving-united-kingdom-by-age/

However, looking at a number in a vacuum doesn't really seem to help much, so the more pertinent questions, as above, relate to your life and financial plans and how that money helps you achieve these.  On the subject of property, many in the UK look to get onto the housing ladder, as a way of ultimately owning a valuable asset rather than simply renting with nothing to show for it at the end, but that's not a universal truth by any means.  Likewise pensions are generally seen in a positive light for those able to plan ahead on a long term basis, but what do you want to do with your savings, what are you saving for?

Linton

Why no pension?  If you had put the same amount into your pension rather than your savings (in cash?) and taken advantage of an employers contribution you would have been much more wealthy.

Not that I am suggesting you put it all into a pension, but contributing nothing is very foolish.

Maria123567

Thank you eskbanker for your reply, it is reassuring to know that amount is above national average. I always try to save what I can but have never really had a plan as to what to do with those savings as they’ve built up. I just knew I should try to save. I’m not very knowledgeable at all about financial matters so really didn’t know if I was doing okay or massively failing so thank you for your reply. I just make sure I can always pay my bills on time and then save whatever I can after that. I would like to eventually buy a property but I guess a bit nervous to do so. 

Maria123567

Thank you Linton for your reply also. Yes I guess I haven’t been saving or investing as well as I could have been. I have changed job many times over the last few years for many reasons but has meant paying in to an employer pension hasn’t really been an option I don’t think. I will look into investing in a pension so thank you for your advice on that. 

ian1246

No pension? No house? I think its rather low to be brutally honest.
Pension is absolutely important - the longer you leave it, the harder/ more your going to have to save at a later date to compensate for lack of saving now.

In regards to house - only you can answer that. Are you settled in the area you live - or do you have to keep changing your area due to work? If your settled and provided its not London/ the South - £30,000 may be enough of a deposit for a house - £20,000 as a 10% deposit & the remaining £10,000 to cover legal costs & act as an emergency budget. Obviously... depends on house prices & your annual income (mortgage offers are generally 4.5-5times your income). If you can and *want* to afford a house.... might be worth doing so, taking the mortgage out over 35 years.... which would likely mean your monthly payments are significantly lower than your rent, freeing up cash to invest into a pension.... (whilst also slowly building equity in a home!) - which would hopefully put you on track to a comfortable lifestyle!.

#########
Just some thoughts.... but ultimately only you kn9w your situation and what is best! 

Do save in a pension regardless though!

colsten

Maria123567, what are you planning to live off once you are unable to work any longer?

xylophone

Do you have any chance of a job with local government or the NHS which would give you the chance of a decent pension scheme?

Maria123567

ian1246 said:

No pension? No house? I think its rather low to be brutally honest.
Pension is absolutely important - the longer you leave it, the harder/ more your going to have to save at a later date to compensate for lack of saving now.

In regards to house - only you can answer that. Are you settled in the area you live - or do you have to keep changing your area due to work? If your settled and provided its not London/ the South - £30,000 may be enough of a deposit for a house - £20,000 as a 10% deposit & the remaining £10,000 to cover legal costs & act as an emergency budget. Obviously... depends on house prices & your annual income (mortgage offers are generally 4.5-5times your income). If you can and *want* to afford a house.... might be worth doing so, taking the mortgage out over 35 years.... which would likely mean your monthly payments are significantly lower than your rent, freeing up cash to invest into a pension.... (whilst also slowly building equity in a home!) - which would hopefully put you on track to a comfortable lifestyle!.

#########
Just some thoughts.... but ultimately only you kn9w your situation and what is best! 

Do save in a pension regardless though!

Hi ian1246, thanks for your reply. Good advice about the pension so thank you for that. It is something I’ll look into. I’m really clueless with investing so just trying to get my head around it all. Appreciate the advice. Some say the amount I’ve saved is low, some say above average. The latter helps me sleep better to be honest but do take your point that I need to try harder. Thank again for the pension advice.