What do/would you do with £1k spare each month?

bazman86

Hi,

With inflation now at 9%, if you had £1k spare after tax, bills, monthly entertainment - where would you put that keep putting your spare £1k for each of the next 12 months or so? Savings accounts are only 2.5% interest.

Thanks in advance for your help

Linton

The best place for a spare £1K/month depends very much on your circumstances. For example:

Do you have an emergency fund of say 6 months living expenses?
When will you need the money? 12 months? 5 years? 10 years? retirement?
How much are you paying into your pension?
What age are you?
Do you own your home?
Family?

The more info you can give the more likely it is that the suggestions are appropriate.

george4064

I'd invest it monthly into my S&S ISA, into existing holdings that make up a global equity portfolio.

What I'd do isn't what you should do, I was just answering your question.

Kim1965

I would stick in my pension because im no where near lta and not up to the max yearly allowance /or income. 

Thumbs_Up

Pay your mortgage off quicker if you have one.

clive0510

if I had £1k extra per month, I would buy an old car, like a merc kompressor or a beetle, restore it and maybe keep it or even sell it on for a profit.

MX5huggy

I would put £1498 per month in my pension via Salary Sacrifice. I might go crazy and round it up to £1500. 

MovingForwards

Based on my current circumstances - ¹/3 into each of mortgage, savings and pension.

If I was mortgage free - ¹/3 into each of S&S ISA, savings and pension.

wmb194

bazman86 said:

Hi,

With inflation now at 9%, if you had £1k spare after tax, bills, monthly entertainment - where would you put that keep putting your spare £1k for each of the next 12 months or so? Savings accounts are only 2.5% interest.

Thanks in advance for your help

Why only 12 months? If I knew I had an expenditure in 12 months' time to save for then it changes things from if I don't.

El_Torro

Any money I have left over every month goes into my S&S ISA. 

I am already happy with the size of my emergency fund, my monthly pension payments and my mortgages so for now at least the S&S ISA makes the most sense.

Millyonare

Pension, via salary exchange (sacrifice).

Assuming +5% annual growth, 12 months of £1,000 (£12k) could be magicked into nearly £30k within 10 years.