Basic 'what to do with my money' thread
Discussion
I've just started back at Uni after a placement year, managed to save £3k. A tiny amount compared to what gets bandied about here but hey-ho.
Now, I've just got it sat in a basic account at the moment, not earning any interest or anything.
What should I do with it?
I want to do something interesting but not super-high risk, I can't afford to lose it.
Cheers
Now, I've just got it sat in a basic account at the moment, not earning any interest or anything.
What should I do with it?
I want to do something interesting but not super-high risk, I can't afford to lose it.
Cheers
Ginge R said:
Tim,
Good thread.
If you can't afford to lose it, don't invest it. Consider looking at paying down expensive debt first, set aside some for an emergency fund and look at using some to subsidise suitable insurance if you get injured and can't work in the future.
Thanks for your responseGood thread.
If you can't afford to lose it, don't invest it. Consider looking at paying down expensive debt first, set aside some for an emergency fund and look at using some to subsidise suitable insurance if you get injured and can't work in the future.
I think you're right. In that case could you please recommend a good Cash ISA or similar?
Also, what's the general consensus on Nutmeg?
Have you got some set aside for emergencies.
Car repairs, rent etc?
If not you should do, chuck it in a s
t low interest account and start really saving.
If you have and you can invest it and forget it throw it into a low cost ftse tracker preferably 0.1% charges etc.
Nutmeg will charge you 1% plus whatever the underlying funds cost as well.
That's a bad idea.
Then while you are saving up more and earning dividends on the tracker you can DIY and start thinking about asset allocation, risk tolerance, time horizon, behavioural biases, risk types etc
Think long term. ISA wrapper is your friend. If you have a salary a SIPP or similar is also a good friend and will give you a 20% tax credit even if you earn no income you will get a 20% credit on the first £2800 or so.
20% return right off the bat etc..
DYOR
Car repairs, rent etc?
If not you should do, chuck it in a s
t low interest account and start really saving.If you have and you can invest it and forget it throw it into a low cost ftse tracker preferably 0.1% charges etc.
Nutmeg will charge you 1% plus whatever the underlying funds cost as well.
That's a bad idea.
Then while you are saving up more and earning dividends on the tracker you can DIY and start thinking about asset allocation, risk tolerance, time horizon, behavioural biases, risk types etc
Think long term. ISA wrapper is your friend. If you have a salary a SIPP or similar is also a good friend and will give you a 20% tax credit even if you earn no income you will get a 20% credit on the first £2800 or so.
20% return right off the bat etc..
DYOR
Don't worry about investing the money in savings accounts or the stock market.
Instead, in your position I would invest in your future - make sure in your final year of uni you don't miss any opportunities to get the best degree you can and experiences you can talk about at interviews for jobs when you leave.
Spend the money rather than take a tiring job stacking shelves to fund your final year and use the time to study or do interesting things.
If you're currently making do with an old computer or struggling to borrow books from the library on the rare occasions they are available then invest in a better computer or buy the books.
If you get a better job you will be able to quickly save up £3K when you graduate.
Instead, in your position I would invest in your future - make sure in your final year of uni you don't miss any opportunities to get the best degree you can and experiences you can talk about at interviews for jobs when you leave.
Spend the money rather than take a tiring job stacking shelves to fund your final year and use the time to study or do interesting things.
If you're currently making do with an old computer or struggling to borrow books from the library on the rare occasions they are available then invest in a better computer or buy the books.
If you get a better job you will be able to quickly save up £3K when you graduate.
Thanks for your responses. I'll have a look at opening a Cash ISA of some sort that I can withdraw from if needs be.
Purplepolarbear, I like your suggestions. I've got a slightly ageing Macbook that could do with an upgrade.
I'm also looking in to getting my first credit card. I plan to put small purchases like petrol and groceries through it in an effort to build a credit rating. The world of credit is a complete abyss, i've got very little idea who to go with!
Purplepolarbear, I like your suggestions. I've got a slightly ageing Macbook that could do with an upgrade.
I'm also looking in to getting my first credit card. I plan to put small purchases like petrol and groceries through it in an effort to build a credit rating. The world of credit is a complete abyss, i've got very little idea who to go with!
TimLambert7 said:
Thanks for your responses. I'll have a look at opening a Cash ISA of some sort that I can withdraw from if needs be.
Purplepolarbear, I like your suggestions. I've got a slightly ageing Macbook that could do with an upgrade.
I'm also looking in to getting my first credit card. I plan to put small purchases like petrol and groceries through it in an effort to build a credit rating. The world of credit is a complete abyss, i've got very little idea who to go with!
My 4p is save it, not spend it if you don't need to. Have a hunt on Moneysavingexpert or similar to see what accounts pay the best interest. As for credit cards, great things but pay off the balance in full every month so you never pay interest. Set up a DD for this so you don't have to remember.Purplepolarbear, I like your suggestions. I've got a slightly ageing Macbook that could do with an upgrade.
I'm also looking in to getting my first credit card. I plan to put small purchases like petrol and groceries through it in an effort to build a credit rating. The world of credit is a complete abyss, i've got very little idea who to go with!
ctdctd said:
Open another current account(s) - treat them as savings accounts and read their terms!
E.G. Nationwide 5% on £2K5 for a year or TSB 5% on £2K until they change it.
Way better than any current ISA.
The buggeration for larger savers is that the higher the amount the less interest you get. A weird reversal on what used to happen.E.G. Nationwide 5% on £2K5 for a year or TSB 5% on £2K until they change it.
Way better than any current ISA.
megaphone said:
OP, how are you funding university?
Fees and maintenance loan from Student Finance. Rent paid by parents.This is very much the usual nowadays. Maintenance loan won't ever cover rent, even somewhere cheap. I have several friends who pay rent with the maintenance loan and live off their £1500 overdraft, which strikes me as insanity.
SunsetZed said:
ctdctd said:
Open another current account(s) - treat them as savings accounts and read their terms!
E.G. Nationwide 5% on £2K5 for a year or TSB 5% on £2K until they change it.
Way better than any current ISA.
This for sure, even if you are paying tax this will get you a better return.E.G. Nationwide 5% on £2K5 for a year or TSB 5% on £2K until they change it.
Way better than any current ISA.
Really appreciating all the feedback from everyone, lots of good ideas.
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