How to invest my wage smartly?

Jjarun

Next month I will be joining the military, I will be earning around £900 a month lets say, my outgoings will be next to none apart from toiletries etc, I want to save at least half of my monthly earnings if not more. I plan to be in the military for about 7 years, in which time I want to save up to move to Norway and get a house. I'm just wondering what most people would recommend in this situation, I have looked into normal savings accounts but I feel like that does not give enough interest back to merit putting savings in. I've looked into fixed ISA accounts but I don't know enough about them or who is the best to open with. I don't really understand stocks and share ISAs but I hear they make good returns. I'm not into crypto or that sort of thing so please do not recommend that. I know that the UK government has a scheme to help with purchases of first homes with help to buy ISAs but those only contribute towards a UK property, again I am wanting to move abroad to Norway and stay there for the foreseeable future.

I apologise if this is the wrong thread, I am new to this website. I appreciate any help that is offered to me.

Alistair31

The army pays £900 a month? It’s no wonder they struggle to recruit. Is that even legal? 

DireEmblem

A Lifetime ISA might be an option.

I don’t know if there is a limitation of ‘where’ you can buy your first house with the funds however.

MovingForwards

DireEmblem said:

A Lifetime ISA might be an option.

I don’t know if there is a limitation of ‘where’ you can buy your first house with the funds however.

UK only:
https://www.google.com/amp/s/www.moneyadviceservice.org.uk/blog/how-to-use-your-lifetime-isa-to-buy-a-home/amp

TadleyBaggie

Alistair31 said:

The army pays £900 a month? It’s no wonder they struggle to recruit. Is that even legal? 

Private gets about £20K gross, deduct tax and NI plus food and board, £900 p/m nett is probably ballpark.

Speedster2

Jjarun said:

Next month I will be joining the military, I will be earning around £900 a month lets say, my outgoings will be next to none apart from toiletries etc, I want to save at least half of my monthly earnings if not more.

Just a few points off the top of my head about your expectations. Apart from in basic training and if you are deployed overseas, you will be paying for your food. Cookhouses are run by catering businesses these days, in a scheme called Pay As You Dine (also jokingly called Pay As You Starve) the ‘Core Meal’ is cheap, as it is heavily subsidised. It’s usually awful. Anything else, the caterer puts as large a markup on it as they can get away with. Guess which menu items are the most appetising?! 

You are going to want to supplement your Core Meal, if you’ve stuck to that, with extras from the on-base shop .Used to be the NAAFI, is now probably a Nisa or equivalent brand but run by the same caterer/public services provider who runs the camp PAYD. Prices are high, but you’ll need the extra calories/morale. It’s unlikely there will be a Tesco/Lidl/Aldi etc just outside the gate unless you’re extremely lucky. You’ll also probably be in the nearest town drinking frequently when you finish your training, unless you are a complete hermit, taxis will sting their captive squaddie market for those early hours trips.
I’m not saying that you won’t save some money. But enough in 7 years to buy property in Norway? Nice dream to have, I wish you luck with your plan. Have a great time in the Army, I’m sure it will be a fantastic life experience.

Albermarle

 I don't really understand stocks and share ISAs but I hear they make good returns

A S& S ISA  is a way of buying and holding investments linked to the financial markets . The ISA part protects you from any tax liability from the investments .

However the investments can/will go up and down in the short to medium term, but in the long term you can expect reasonable growth , although it is not guaranteed. In this context 7 years is medium/long term , ideally should be longer . Have a look at these links

https://www.moneysavingexpert.com/savings/investment-beginners/

https://www.moneysavingexpert.com/savings/stocks-shares-isas/

Thrugelmir

I'd opt for a LISA.  At least keep your options open. As your ability to save is somewhat limited. Norway is an expensive place to live. 

Albermarle

Thrugelmir said:

I'd opt for a LISA.  At least keep your options open. As your ability to save is somewhat limited. Norway is an expensive place to live. 

Yes that £900 would not go far in Norway . A good night out for three people would probably swallow half of it .

grumiofoundation

Thrugelmir said:

I'd opt for a LISA.  At least keep your options open. As your ability to save is somewhat limited. Norway is an expensive place to live. 

If the OP is planning to settle in Norway (i.e. buy a house) LISA would then not be suitable for any money needed pre-retirement, since it is only accessible (penalty free) for a purchase in UK (or for retirement). 

bostonerimus

Firstly make sure you understand your military pension. I believe that the UK still has a non-contributory DB scheme. Next you need to save for future events. If the money is going to be used for something in seven years time I think you need to be a little careful. Definitely keep a year or so's spending in the bank and I would use an ISA and educate yourself about investing in equities and bonds. Also ask if the UK military has any special saving/investing accounts available.