What to do with 2k?
Discussion
Hello all
I don't spend too much time in this part of the forum, however I know there seems to be a few savvy people so would like to probe the great minds of PH before diving into things.
Backstory is I have currently roughly 2k sat in a couple of mutual savings accounts.
They still have a few years to go before they mature and to be honest, I am tempted to take them out to use for potentially better things. If I was to take them out early I might lose a day or two's pay against what I have put in so far, but the alternative is sitting tight for years and getting probably a weeks extra pay, 2 weeks at best.
You might be wondering why not just keep it in there? To be honest, I still might, but it is pretty much the only capital I can muster up currently, I want to get some better returns long term and if I lose it all, well, its not going to leave me homeless put it that way.
This is probably the worst time to ask for advice based on whats happening with Cyrptocurrency (HODL!) - Lets make it clear I am not trying to look for reassurance to invest in BTC! When thinking of Cyrpto I can't help but think of a certain spring-blooming perennial herbaceous bulbiferous geophyte... but that's because I am jealous I didn't invest earlier.
But humour me, knowing what you may know, what would you do with 2k and a fresh start, and why? (Asking why as I am pretty much a financial virgin)
Thanks in advance
I don't spend too much time in this part of the forum, however I know there seems to be a few savvy people so would like to probe the great minds of PH before diving into things.
Backstory is I have currently roughly 2k sat in a couple of mutual savings accounts.
They still have a few years to go before they mature and to be honest, I am tempted to take them out to use for potentially better things. If I was to take them out early I might lose a day or two's pay against what I have put in so far, but the alternative is sitting tight for years and getting probably a weeks extra pay, 2 weeks at best.
You might be wondering why not just keep it in there? To be honest, I still might, but it is pretty much the only capital I can muster up currently, I want to get some better returns long term and if I lose it all, well, its not going to leave me homeless put it that way.
This is probably the worst time to ask for advice based on whats happening with Cyrptocurrency (HODL!) - Lets make it clear I am not trying to look for reassurance to invest in BTC! When thinking of Cyrpto I can't help but think of a certain spring-blooming perennial herbaceous bulbiferous geophyte... but that's because I am jealous I didn't invest earlier.
But humour me, knowing what you may know, what would you do with 2k and a fresh start, and why? (Asking why as I am pretty much a financial virgin)
Thanks in advance
If £2k is everything you can lay your hands on right now then keep it aside as a rainy day fund. Dont put it anywhere you could lose it such as an investment account.
Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
p1stonhead said:
If £2k is everything you can lay your hands on right now then keep it aside as a rainy day fund. Dont put it anywhere you could lose it such as an investment account.
Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
That is an awesome flowchart! Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
Is there one for financial freedom? It would be interesting to see how it looks.
CasioPasio said:
p1stonhead said:
If £2k is everything you can lay your hands on right now then keep it aside as a rainy day fund. Dont put it anywhere you could lose it such as an investment account.
Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
That is an awesome flowchart! Stolen from reddit - https://www.reddit.com/r/UKPersonalFinance/comment...
Is there one for financial freedom? It would be interesting to see how it looks.
I'm having enormous fun with a small play fund investing in Crypto, in three weeks I've made enough to withdraw my initial investment and leave a decent fund to invest in a diverse range of coins, so from here all in it really is just play. Learning a lot about finance too which has always been a goal. Just wish I'd have picked up on it 5 years ago, I think the only crypto millionaires starting from now will have to be a lot less worried about losing a large chunk of change than I am. No way am I lumping large on crypto, it's too speculative. Fun though :-)
toastyhamster said:
I'm having enormous fun with a small play fund investing in Crypto, in three weeks I've made enough to withdraw my initial investment and leave a decent fund to invest in a diverse range of coins, so from here all in it really is just play. Learning a lot about finance too which has always been a goal. Just wish I'd have picked up on it 5 years ago, I think the only crypto millionaires starting from now will have to be a lot less worried about losing a large chunk of change than I am. No way am I lumping large on crypto, it's too speculative. Fun though :-)
What are you learning about finance?
It's laudable that you have savings rather than a deficit like much of the country. However, I am not sure £2,000 can ever really form the basis of some financial strategy unless its invested in a small start-up of your own for stock or such like. In investment terms I really think you would be better place leaving it as a back-up in a liquid account even if interest rates are piss poor. To be honest, even at 5%+ rates that sort of amount is not going to give any worthwhile return so instead its a nice buffer to have to give you some security which in itself might give you a bit of time freedom or suchlike to be able to make your money elsewhere.
Crypto currencies, fx trading, signals sent down from above, leveraged spread betting etc etc, I would take them with a similar amount of salt as Bonneville.
Crypto currencies, fx trading, signals sent down from above, leveraged spread betting etc etc, I would take them with a similar amount of salt as Bonneville.
Ok, so there is some sensible sounding opinions here, thank you all so far.
The least sensible of course is getting a motorbike license, as that will surely lead down a slippery slope, I have enough on my plate with track days and off-roading to get involved with bikes as well.
Truthfully I know the best thing to do with it is leave it alone for now, but something in my head is shouting at me to abort and throw it all on black. Actually, that’s got me thinking...
The least sensible of course is getting a motorbike license, as that will surely lead down a slippery slope, I have enough on my plate with track days and off-roading to get involved with bikes as well.
Truthfully I know the best thing to do with it is leave it alone for now, but something in my head is shouting at me to abort and throw it all on black. Actually, that’s got me thinking...
CasioPasio said:
Is there one for financial freedom? It would be interesting to see how it looks.
It's essentially in there - look at the arrow "Retiring Early" - or are you asking about how you decide you're free or even how you use those investments optimally after you've stopped working?seany87 said:
Ok, so there is some sensible sounding opinions here, thank you all so far.
The least sensible of course is getting a motorbike license, as that will surely lead down a slippery slope, I have enough on my plate with track days and off-roading to get involved with bikes as well.
Truthfully I know the best thing to do with it is leave it alone for now, but something in my head is shouting at me to abort and throw it all on black. Actually, that’s got me thinking...
In all honesty, I'd leave it where it is for now, until the product that it is in expires, then move it to an S&S ISA.The least sensible of course is getting a motorbike license, as that will surely lead down a slippery slope, I have enough on my plate with track days and off-roading to get involved with bikes as well.
Truthfully I know the best thing to do with it is leave it alone for now, but something in my head is shouting at me to abort and throw it all on black. Actually, that’s got me thinking...
Nano2nd said:
get a Nationwide FlexDirect Current account, pays 5% on up to £2500... theres currently no better paying/more liquid/risk free way of holding your 2 grand for the next 12 months (intro rate).
Although you do have to make it your preferred 'current account' as one of the terms and conditions is paying in over £1k a month, admittedly you could set up a few DD's to shuffle cash between accounts. 
raceboy said:
Although you do have to make it your preferred 'current account' as one of the terms and conditions is paying in over £1k a month, admittedly you could set up a few DD's to shuffle cash between accounts.
yeah that's what i do, transfer the £1000 in the out again after a couple of days. got an account i the missus name, so that £5000 at 5% at least, the next best are tesco 3% and TSB 3%, with santanders fee it doesn't really work out anymore... then you down to 1.x% which hardly makes the hassle of moving the the money around worth it. so about the best you can do as a couple is £10k just about keeping up with inflation... then if you haven't got he rest properly invested its going down in value 
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