Best way to build up savings

[gman88667733]

Bit of background, I am 22 and rent a place with my partner, I have about £15,500 in savings (just took a hit due to car bills and a nice holiday..!) We are looking to buy a house in 4-5 years time or so once my partner has qualified as a teacher (open uni 6 year degree, can't fast track it) and got a job sorted.

Neither of us currently earn a lot, our combined income is about £30k before tax (this will go up somewhat by the end of the year). At the moment I can put away anywhere from £200 to £350 realistically a month into my savings. Obviously that may decrease if I get a car bill or something unexpected. My partner can only put away £100 roughly a month if she is lucky, so we want to put away as much as we can really.

My question is, I am paying into a H2B ISA the full £200 each month as a standing order, but I am not sure whether to just keep trickling money into my regular savings account, or if I should explore other options? It would all be very new to me, but there seems to be a lot of recommendations for investing.

Any suggestions would be great, it is a bit of a minefield for someone my age..!

[Olas]

Spend less and save more. It’s foolproof.

[deggles]

Look at switching to a Lifetime ISA rather than a Help To Buy ISA, the maximum contributions are higher as is the maximum house purchase price outside London. Only downside is if you don't buy a house the money is tied up till retirement age.

[designforlife]

If you aren't buying for another 4-5 years I would say just keep doing what you are doing... you've already got a decent chunk saved, and plenty of time to generate more with minimal risk.

That''s what I would do anyway.

[Spare tyre]

Buy and sell something as a hobby on weekends

I did this with something motoring related and not only did I earn a little bit of money, it prevented me from spending it at the same time

[gman88667733]

Interesting idea with the buying and selling... I suppose you found cheap parts or bits and sold them elsewhere for more?

[Chester35]

Firstly I commend you for having so much savings at that age and having a plan with the lady for so many years. You obviously have great parents brought up during rationing !

You do seem to have your head screwed on straight.

I have always worked to security. So paid of the mortgage of the house, no debt whatsoever, 3 cars, all fairly middle of the road, not literately. Which is fine but then worked out last year that if I had not paid off all that and put it into Amazon / Apple / Google 15 years back I'd now be a multi millionaire.

Or in a parallel universe I might be living in a box.

Risk v security.


If your other half is going to be a teacher that is good as it means her job can be local to where ever you live. If the housing market was in a low at the moment I think the best thing would be ASAP to buy a place that needs doing up. A cheap house in a cheap time period. Also gives you a hobby together. Also it means you stop paying off some fat age 50+ landlords mortgage on his 15th buy to let ... the money is going to your very own hovel that will soon be a palace. Also it is romantic, spot all those adverts where a young couple have paint all over them and smiling.

You say you want to buy a house together in 4-5 years time, which is 2 people at 12 months * 4 times your monthly rent. All which can go into a house now. You just need to bottom feed a really cheap one and have a project. Well that is my advice. 4-5 years of combined rent can pay for a lot of house renovation.

All the best. I am sure it will all work out well!