Starting to save

[yellowflowers]

Dh got new job. So thrilled. And for first time ever we'll be able to save a bit.

This is what I want to save for:

Being old - want to have nice holidays and enjoy retirement. Should we plough money Ito pension or into savings?

Dd's wedding - silly I know but would love to be able to give her a lump sum, around 5k in today's money, when the time comes. Want to do this more than a uni fund as we'll never get close to how much that will cost so may as well not try. She's only 1 now!!

A big family trip one day in future. Maybe to Disneyland when dd is 8ish and baby due this year is 6ish.

A stamp duty fund so we can move house one day - in 3 or 4 years time probably.

A rainy day emergency fund.

So, er, how do we organise and go about doing all this?

Congratulations to your DH on the new job! What a lovely feeling, when the financial pressure eases, even just a little bit :)

It sounds like you have some very sensible ideas, I don't know how much you expect to be able to put away each month but if you spread it over too many different projects, each one might seem to only grow by a tiny amount, and if they are in separate accounts, will earn very little interest. I would be tempted to open a high interest account, and pay as much into it as you can. There are some types where you have to give up to three months' notice if you want to make a withdrawal, they tend to be higher interest rates than those where you can access the money immediately. That might be a good choice for your DD's wedding fund.

If you can arrange to see an independent financial advisor, they should be able to advise you on how best to manage your savings - they may recommend an ISA, I have to admit to not being totally sure how they work.

The only thing I would categorically say though, is pay off any debts first - store cards, credit cards, loan agreements, if you have any. You will NEVER earn as much interest on your savings as what you pay on your borrowings, so it will save you money by paying off anything like that as soon as you possibly can.

Good luck!

Some of what you want to save for is short-term.... e.g rainy day emergencies and for that I'd recommend you get the ball rolling with Cash ISAs. Each adult can save £5,640 cash each financial year (that's £11,280 if there are two of you), there are many easy-access options and any interest received is tax-free. Suggest you aim for 3 - 6 months expenses as a target for rainy-day money. Check out the best deals each April so that your money works as hard as possible

Some of your savings objectives are medium term (5+ years) ... the big family trip, for example. Once you're in a good savings habit have built up a balance and/or have extra money beyond what you can put in a Cash ISA consider things like 5 year bonds. These are not tax-free and the money is tied up until the bond matures, but the interest rate is usually better than a straight savings account

Finally you've got long-term objectives (10+ years)... weddings, university fees, pensions. In the case of the children, have a look at Junior ISAs. There are various types and currently you can put away £3600 per financial year per child. For retirement planning there are several long-term options.... pensions, investments, property, assets, savings... and I think the 'don't have all your eggs in one basket' adage applies. It would pay to talk to an IFA about what is appropriate for your circumstances

I've linked to moneysupermarket.com to illustrate but other comparison sites are also useful. Good luck

Congratulations on your DH's new job

If you can save any money for your DD, I would prioritise education over marriage!