First Time Making a Saveable Wage as a Young Person - Where to Put it?

StudentHelpPls28

I want to save, I have ISA's and bank accounts, I just have no idea where to put it.

I get my salary into a nationwide checking, and I have a monzo for regular spending. I just have no idea where to put the money I save towards things. Monzo pots, separate saving accounts - a nationwide one? Like what about the money I save towards rent, and the money towards birthday gifts ect, where do I keep that separate?

Or do I just track it on my budget and see how well I did at the end of the month? Right now I'm following the 50-30-20 budget which is great. And I save money really well, I just have no idea how to organise it.

twopenny

I've always kept a second current account where I put surplus money from my regular account. This is to pay for unexpected bills, holidays if enough.

If life's been good enough not to throw any surprises at me then some gets put in an easy access cash ISA. It's there to spend if necessary but still earning a little interest.

Then some better earning ISAs as savings grow. When young I aimed for the higher rates but not tied up for too long so I could move it regularly for the best interest.

If you can, running a current account that pays interest or cash back is a great idea.

HedgehogRulez

have you considered pensions?

Eco_Miser

First, for money you'll be using soon, a good easy access account: see the-new-top-easy-access-savings-discussion-area

Second, for higher interest (currently 8% AER available) on monthly savings for use next year or later, see the Regular Savings thread

Third, after you've built up a lump sum, see the-top-fixed-interest-savings-discussion-area

If you're likely to get £1000 interest, use a cash ISA, preferably a flexible one, so you can take money out if needed and put it back before the end of the tax year (5 April).

You can use Monzo pots or similar, or just use nominal pots in a spreadsheet with the money in a single easy access account, but either way, put your planned savings away as soon as you get paid. You can top them up more if you've anything left at the end of the month.

BikingBud

Have you seen this? It is generic rather than advising who and what but it is a good guide.

https://ukpersonal.finance/flowchart/

The advice about a second current account is excellent, you need your emergency pot accessible so splitting money into a different provider mitigates any issues that might close down one of your accounts.

Lots of good advice on specific products and best providers, it can become all consuming.

Perhaps be clear about your aims and how you measure that progress.

Too many spend lots of time accumulating and not enough enjoying.

wmb194

https://forums.moneysavingexpert.com/discussion/6679521/first-time-making-a-saveable-wage-as-a-young-person-where-to-put-it

You can do whatever you like - there’s no correct answer - but to maximise returns I’d chase the best rates. You can budget for different things whilst holding the money in a single or across multiple accounts: use a spreadsheet to help you visualise and apportion.

https://moneyfactscompare.co.uk/savings-accounts/

PRAISETHESUN

I personally like to keep it separate so I can clearly see money earmarked for bills and what's genuinely leftover. I find if I set it aside on payday then I am more likely to keep it saved.

If your saving straight from your income, then it sounds like a regular saver might be right up your alley. Typically they offer higher rates over easy access accounts but you are limited in how much you can deposit each month. Some good resources below.

https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

https://forums.moneysavingexpert.com/discussion/6652858/the-top-regular-savers-discussion-thread

Also worth a look at pensions if you're not maxing out your workplace contributions, as it's often free money from your employer. Saving for retirement is still saving. I've been contributing to my pension since I was 16!

StudentHelpPls28

https://forums.moneysavingexpert.com/discussion/comment/82099964#Comment_82099964

I have a Civil Service Pension, but that's as much as I know about pensions.
I wouldn't know where to start a private one.

Middle_of_the_Road

Have a read of this article

https://www.moneysavingexpert.com/pensions/cheap-sipps/

SiliconChip

You haven't said what type of ISA you have, but as nobody else has asked the question I will: do you have a LISA? If you don't and you hope to buy a house at some point then you really should consider one because of the massive bonus that the government gives you.

https://www.moneysavingexpert.com/savings/lifetime-isas/

https://www.gov.uk/lifetime-isa