to ask you to tell me how to save money sensibly?

[Clairewentoverthemountain]

I have some savings, but they're sat in a bank account doing nothing. I'm working abroad at the moment so they're in my account here, but thinking to start sending money back to the UK to save it ... sensibly? Is that the right word?

What I mean is, I'm always seeing people saying they buy stocks or shares or put money in special bank accounts that somehow makes the money grow but honestly I am CLUELESS. I have no idea how stocks or shares work, I wouldn't even know how to go about doing that, and I also know nothing about bank accounts to help savings grow.

Can anyone shed some light and explain a bit - explain anything you know about or any tips you have about any of it - doesn't have to be about all of it, of course!

Or if you're a bit clueless too but maybe can point me in the direction of any good websites or videos or reading lists or literally anything that can help me? (Before anyone says "Google it yourself!" I did, but I couldn't really identify anything that I was certain was trustworthy and it seemed to come up with a lot of ads/questionable sites that looked like they might ask for money, and I just felt a bit reluctant to trust the internet unless I knew it was a trustworthy site.)

I don't know how I've never figured this out. I just don't know. No excuse. I've never really dealt with banks, our current house (not in UK) is on inherited family land (they aren't super rich or anything, it's just the way it's done for everyone in my husband's culture!) so I've never really dealt with mortgages or anything, and never taken a loan as I've never really needed one, so I'm just very inexperienced with banks and finances other than earn money - spend some - leave rest in bank to save.

Probably I'm just a bit dim. Please help!

Stocks and shares are only good if you know you don't need to touch the money in the short term. If you might need the money within the next 5 years then the stock market is not the place.

Furthermore those kinds of investments can go down as well as up (which is why as short term investments they are not a good idea). So you have to be willing to take the risk.

A toe in the door would be some kind of index tracking unit trust. Definitely don't invest in just 1 or 2 individual companies.

If you can know you can save regularly then drip feeding in monthly can help smooth out the bumps (it's called something like pound cost averaging or something I think).

If you are abroad, can you access ISAs which are tax free?

Vanguard

You need to be UK resident (or a Crown Employee - whatever one of those is) to open and pay into a ISA. Although if you already have one before you leave the UK, you can keep it.

Try these sites:

www.moneyhelper.org.uk/en/savings
(backed by the UK Government)

www.which.co.uk/money
(from the Consumers Association, an independent charity)

You might be better posting on the Money Matters board.

Roughly how much do you have in savings? £2k? £20k? £200k?

Hi op start with looking up vanguard.

Meaningful money, and other podcasts are good.

When I had started to learn a little I then checked the funds I like the look of with trust net and morning 🌟 Star.

You can use a platform like Hargreaves and landsown,many people start with them because their app is good and then,when more confident move to a cheaper platform.

I would spread the savings.

Put a chunk into a fund (s) to leave.

Put some into an account perhaps one with a higher interest rate that you don't touch for a year. Have some in premiums bonds....

Read

"Meaningful money handbook" by Pete matthews

That answers all your questions :)

You need to be very careful with your tax residency and where you can invest money.

Many of the UK based places will require you to be a UK resident to invest. Do you want the money here eventually, or might it be worth investing in your current country?

We kept lots as cash when abroad, then invested when we returned to the UK.

"Your money or your life" - Alvin Hall
"Smarter investing" - Tim Hale

You need..
Money for now (food, shelter etc)
Money for emergencies (6 months' expenses , that sort of thing)
Money for medium term stuff - house deposits, replacing a car/boiler/roof when it dies, that sort of thing
Money for retirement

Another vote for Meaningful Money (website, podcast, book as per your preference) and looking at Vanguard or similar for an index tracking fund and take advantage of tax breaks where you can (ie stocks and shares ISA or a pension, but obviously what you're allowed where you live and if there's anything UK based you can do while you live abroad).

Also look at this financial flowchart for what you need to do in what order.

ukpersonal.finance/flowchart/

However, by working abroad and having ties to the UK and thinking of sending money here puts you at risk of currency fluctuations. Are you paid in local currency? If so, if the value changes against the pound in the wrong direction, that will also cost you money. Of course, if the pound declines, you could come out on top.