What would you do with 5k savings?
Discussion
People tend to forget the savings pyramid principle. You can alter the placement of the sectors but imagine a pyramid. Bottom third height wise should be in readily accessible cash, obviously earning as good return as you can, but this is your rainy day stuff. When the engine throws a cam belt the day after the washer packs up the week after you've just renewed the central heating boiler with the final holiday payment due next month. That sort of stuff plus if someone loses their job then next month's mortgage is covered and the month after that and so on. Aim for 6-9 months of income in cash.
The next third height wise should be safe investments which might be locked away for longer terms but safe and relatively realisable assets.
The top third can be riskier stuff.
Too many have nothing and in the event of rainy day / job loss are out of everything inside two months. It's called prudence.
The next third height wise should be safe investments which might be locked away for longer terms but safe and relatively realisable assets.
The top third can be riskier stuff.
Too many have nothing and in the event of rainy day / job loss are out of everything inside two months. It's called prudence.
Luke Warm said:
turbobloke said:
developer said:
Use it to pay off any credit that's at a higher interest rate than the interest you could earn with it.
If that took away somebody's entire cash cushion i.e. emergency funds?gregf40 said:
Sharted said:
If it's the total of your savings I would keep it in an instant access account, it won't make a great deal of interest but will be available should you lose your job or break something important in the house/car.
You can pull money out of P2P lenders usually within 24 hours (I know you can with Zopa and LandBay as I have done it). Someone else just takes over the loan.Mandat said:
My bonds are averaging about 2%, which I don't think is too bad, although I'm still waiting to hear from Greg as to why he avoids them like the plague?
Some people just do, Martin Lewis did. He tried to explain it mathematically and it took a lot of doing, he eventually conceded the return was as good as anything else at that time (a few years ago), but with the obvious advantage of x amount of refundable lottery tickets.The risk is, you win nothing as inflation starts to rise and strips it's real value?
Talk from g'ment this week, only whimsical mind, and testing the water, of putting Premium Bonds into a pension. Determining how to fund the final thirty years of your life on a wing and a prayer struck me as a bit mad.
Talk from g'ment this week, only whimsical mind, and testing the water, of putting Premium Bonds into a pension. Determining how to fund the final thirty years of your life on a wing and a prayer struck me as a bit mad.
FiF said:
Errm what's this? Link?
Sorry, i'm an idiot. I'm afraid the offer has expired now as well.https://www.wellesley.co.uk/moneysupermarketipad/
i have about the same as you,
2k in a tsb account earning 5%
2.5k in a nationwide earning 5%
add 300 a month to my first direct saving account which gives 6% after a year,
£200k in this https://www.savingstream.co.uk/
2k in a tsb account earning 5%
2.5k in a nationwide earning 5%
add 300 a month to my first direct saving account which gives 6% after a year,
£200k in this https://www.savingstream.co.uk/
Nickbrapp said:
i have about the same as you,
2k in a tsb account earning 5%
2.5k in a nationwide earning 5%
add 300 a month to my first direct saving account which gives 6% after a year,
£200k in this https://www.savingstream.co.uk/
You have the same as him, plus 200k in savings stream?2k in a tsb account earning 5%
2.5k in a nationwide earning 5%
add 300 a month to my first direct saving account which gives 6% after a year,
£200k in this https://www.savingstream.co.uk/
Nickbrapp said:
Typo. Soz not soz. We all know anyone on pistonheads would have 200k in a BTL and a appreciating car such as a lotus esprit or other drivel
What did you mean? You have invested 2k with "£200k in this https://www.savingstream.co.uk/"
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