Saving for the Future

[SSG1000]

Hi all,

Presently 21 years old - fortunate enough to go straight into full-time employment after graduating.

I pay 12% into my company pension per month, but still, have £1800 per month spare going into savings.

What is the best thing to do in order to save for the future? Presently I pay money each month into:
S&S ISA
Two Savings Accounts
H2B ISA (Max Contribution p/m)

Any advice on where I can save further?

[Imasurv]

You are doing well.

Emergency fund.
Pension.

In that order.

Although considering I am 47, my view will be different from yours...

Edited by Imasurv on Saturday 14th March 19:18

[gazapc]

Firstly, good work saving. 12% pension payment is great at that age.


Can't really comment on where you should be saving without some more info. What are you goals? House? Early retirement? Periodically splash cash on expensive cars/coke/hookers? When do you want to achieve the relevant goal?

This wll help drive where you might save or invest your cash.

[Mr_Megalomaniac]

I would say the emergency fund is a good idea. 3 to 6 months of your expenses.
Seeing as they are likely low, I would err on the side of caution as the monetary value required won't be much, and set 6 months aside for yourself.

After that, given the ~30% something drop in market value, look to diversified ETFs for some sectors to start picking up. One a month to add to your portfolio. Careful of airlines and stocks that are more susceptible to a market downturn.

[V8covin]

Future what future ?
Put all your money in toilet roll manufacturers.

[Nickbrapp]

3/6 months emergency fund

Then max out your help to buy LISA, £1000 free from HMRC when you put in £4000 for your first house deposit

Then a few ££££ for fun and splashing on random holidays etc, don’t forget to live your life for more than just saving money

[ATG]

V8covin said:

Future what future ?
Put all your money in toilet roll manufacturers.

Don't forget coffins and diggers of plague pits.

Don't know what line of work the OP is in, but when I started out in a fairly well-paid but precarious industry, it was very, very reassuring to have built up enough cash in the bank to be able to walk out of the job (or get booted out) without creating a personal financial crisis. Instant access of a months salary, several more in longer term risk-free savings.

As a more general point, the huge stock market falls may well be creating the best buying opportunity of the next decade. No doubt there's tons of volatility to come and there might still be big falls, but chucking money each month into a pension heavily biased towards equities right now looks like a great opportunity for someone not looking to retire for another 40 odd years.

[SSG1000]

Hi all,

appreciate the thoughts....

ATG - I'm presently working for one of the "Top 4" in the UK, hopefully, I don't get booted out anytime soon!

Have driven up some more investments in my S&S ISA, although keeping some liquid funds in a Marcus savings account - for when the time is right to purchase a few stocks.

[Stevil]

Nothing to add really other than to say you've got your head screwed on and Kudos to you. I didn't get any sort of financial sense until i was into my thirties.

[pb8g09]

SSG1000 said:

Hi all,

appreciate the thoughts....

ATG - I'm presently working for one of the "Top 4" in the UK, hopefully, I don't get booted out anytime soon!

Have driven up some more investments in my S&S ISA, although keeping some liquid funds in a Marcus savings account - for when the time is right to purchase a few stocks.

I assume by the 'top 4' remark that you're in a grad accounting position? - If so, I'd recommend stockpiling as much as you can before the boredom hits in 8-10 years (unless of course you make Partner). I've never met a fun accountant over the age of 30, I should know, I am one and my other half can't stand me!

Try and avoid getting someone up the duff whilst you're sitting your accounting exams too, makes for a stressful life.

[SSG1000]

pb8g09 said:

I assume by the 'top 4' remark that you're in a grad accounting position? - If so, I'd recommend stockpiling as much as you can before the boredom hits in 8-10 years (unless of course you make Partner). I've never met a fun accountant over the age of 30, I should know, I am one and my other half can't stand me!

Try and avoid getting someone up the duff whilst you're sitting your accounting exams too, makes for a stressful life.

Haha fortunately not an accountant but rather a grad in one of the Top 4 Banks in the UK. Accounting wasn't something for me couldn't stand it.

Sounds like you may be talking from experience......

[mikeiow]

Does sound like your head is well screwed on.
I'd advise a skim of https://i.imgur.com/BfHzwr9.png - a decent way to look at finances.

[Mr_Megalomaniac]

SSG1000 said:

Hi all,

appreciate the thoughts....

ATG - I'm presently working for one of the "Top 4" in the UK, hopefully, I don't get booted out anytime soon!

Just spent 5 years at EY and recently departed last year. I hope I'm not speaking out of turn / jinxing it, but I think you're in good hands. They'll qualify for the large firm stimulous package announced today and I used to work closely with the leadership team in FS and I can tell you that they will protect jobs until the last possible moment. I think of all places, unless you're in software, then probably professional services is the next most stable option.
Just keep cracking on and help your clients, they'll appreciate it. Also don't forget to occassionally mention it


EDIT

SSG1000 said:

Haha fortunately not an accountant but rather a grad in one of the Top 4 Banks in the UK. Accounting wasn't something for me couldn't stand it.

Sounds like you may be talking from experience......

Just spotted you mean bank. Not sure if you're in front/mid/back.
Did my time in Mid and Front. For Front, as long as the money is coming in you will be fine. Make sure they know it's you though. People will step on your deals and credentials to save their asses.

If you're mid, well it's a bit out of your hands but aside from doing a cracker of a job, make sure you are also shown to be a good team player and cross-functional / collaborative. At the very worst you'll get the guys in the other departments to like you and that could save you over someone else someday.

Edited by Mr_Megalomaniac on Tuesday 17th March 18:27