Help me decide where to put money

[sparklemoon5]

Hi

I'm looking for help as I am totally clueless about money.

I recently got 25k inheritance.

I would ideally like about 5k to be accessible (we plan to start a family soon and it would be useful to have this somewhere accessible for emergencies).

The rest I would like to possibly put towards a house extension in about 7-10 years time.

I have absolutely no idea where to keep the money but at the minute it is in my standard bank account which has a very low interest rate.

I just want to make sure I make the most logical financial decision about storing the money for the future.

Any advice welcome x

If that were me I'd put the £5,000 in a marcus account, is that enough, do you have an emergency fund?

For the rest, look at your pension, is there a reasonable amount in considering your age?

What's your mortgage rate, is it worth paying some off?
Do you have any debts?
Do you have a decent car? If your car is leased or pcp I'd put the money towards a sensible replacement when it's finished. Something like a one year old Japanese car that will last you years.

After you've looked at these things any money left I would put in a low cost stocks and shares isa.

@rosesarered321

If that were me I'd put the £5,000 in a marcus account, is that enough, do you have an emergency fund?

For the rest, look at your pension, is there a reasonable amount in considering your age?

What's your mortgage rate, is it worth paying some off?
Do you have any debts?
Do you have a decent car? If your car is leased or pcp I'd put the money towards a sensible replacement when it's finished. Something like a one year old Japanese car that will last you years.

After you've looked at these things any money left I would put in a low cost stocks and shares isa.

Thank you for replying.

Sorry I should have provided more details. Didn't intend to drip feed.

We own the car outright and have no debts (except student loan).

I have 8k in my pension (I'm 29) - no idea if that is good or not. I'm trying to learn but it's not always easy to understand.

200k left on mortgage at 2.4%. We can remortgage in a year. I did debate whether it was better to pay some extra on mortgage and then potentially remortgage down the line IF or when we decide to extend (we might find we change our mind).

We have a little bit put aside for emergencies so this 5k would be in addition to that.

You seem well set up financially, with a good emergency fund of at least 6 months outgoings, and the 5,000 for a maternity fund, I'd go for a low cost tracker in a low cost stocks and shares isa.

I've got mine in various vanguard etf's, these are traded like shares with very low costs. Have a read about them.

Thank you for your help @rosesarered321 I shall look into it ☺️

No cash accounts pay anywhere near inflation, and haven't done for a decade. Rates are really bad now.

Stocks and shares ISA for the long term is all you can do. Plus at least six months emergency funding. pay as much as you can into a pension using employer contributions if there are any - maternity leave will stop that.

@rosesarered321

You seem well set up financially, with a good emergency fund of at least 6 months outgoings, and the 5,000 for a maternity fund, I'd go for a low cost tracker in a low cost stocks and shares isa.

I've got mine in various vanguard etf's, these are traded like shares with very low costs. Have a read about them.

I am loving the Vanguard Platform l am very new to investing and went for the 80/20 Vanguard lifestyle, I would,like to add one or two ETFs How did you select your ETFS? were they recommended or did you have advice regarding balancing your portfolio?