What should I do with £1k each month?

[PARunnerGirl]

After my outgoings, putting 10% of my salary into a pension (employer puts 5%) and overpaying my mortgage by 33%, I have about another £1,000 I could do something with.

Does anyone have any advice on how I should invest this or what I should do with it? I’ve never really invested. I wonder if more should go into the pension or if I should spread things about a bit...

As some background, I’m not married and I have no children. I have a mortgage but no other investments or loans.

And I’m 38.. I suppose age matters too. There are probably lots of factors I’m not considering!

Are you using up your ISA allowance? Can get some good deals if you shop around each year.

Save it. You might want to do some home renovations one day, a holiday, kids.

ISA.
Cash ISA if you are risk adverse.
Stocks and shares ISA if you can leave the money for a number of years.
Maybe a cash isa to start with, if you seriously have no savings.

I have no idea OP, but as someone who's looking for a much better paid job, please can I work with you?

Pay off your mortgage. Being mortgage free means that if anything goes wrong in life you will never have to worry about keeping a roof over your head.

After the mortgage is paid off you can look at investing.

I'd make sure you have a good six months salary in easy access accounts. You can get fairly good rates on a number of current accounts such as Tesco and Nationwide. Put the maximum (around £250 a month) into 5% monthly saver accounts such as Nationwide. What's left could go in stocks and shares ISA but only once you have enough savings that you wouldn't need to touch it.

Thanks everyone!

I have three months salary in quick access savings.. sorry, another factor I missed. So this is for “growing” money I guess. I think I’m ok for immediate savings/ if something drastic happens.

I’m not using my ISA allowance and so it seems like a cash ISA is a good way to start. Can anyone recommend any good money/ investment websites where I can look at the options available?

@JourneyofSelfImprovement Haha! I am so fortunate! This is I definitely know and appreciate I definitely want to make the best of what I have because none of us know what’s around the corner!

Most cash ISAs give abysmal interest rates and now that tax on savings interest has been abolished on the first £1000 they have become redundant for many people.
Have a look at Martin Lewis advice on savings.

I used the good old Martin Lewis website and forums
www.moneysavingexpert.com/isas/

5% more into pension and 7% more into mortgage (if you have no limits on overpayment)

Then ISA

You need to determine your attitude to risk. A stocks&shares ISA can hold a fund like Vanguard Life Strategy and you can choose your risk level, so 80% equity 20% bonds, or 60% equity 40% bonds.

Have a look at performance of such funds - data is available in various places but I like how Morningstar lets you view funds side by side to see the differences in costs and performance.

Learn about investing. The Meaningful Money Handbook has a section on investing. It is also covered on their podcast available via most podcast apps and on Spotify. Also on web: www.meaningfulmoney.tv

Cash ISA will get you a small return, often below inflation, so as investment it is probably not taking sufficient risk. You need to determine your attitude to risk.

As has already been mentioned, more towards your pension is an option as you get tax relief on that contribution. However it locks the money away and is taxable when you take it.

Thank you everyone, especially @nannynick.. I feel more clued up already and have plenty of reading up to be getting on with now!

YY to NannyNick's suggestion of Vanguard Lifestrategy funds - this is 'passive investing' -bung your money in a global tracker fund and they do all the trading for you. Now of course there is more risk than straight saving but the rewards can be much greater (especially if you are reinvesting all interest).
Have a look at Motley Fool, MoneysavingExpert, and the book ' the millionaire teacher's (not just for teachers) on how to make sure you have a good spread of savings/investment vehicles