Help to Buy or Lifetime ISA?

[MustardYellow]

Hi,

I recently started my first graduate job earning just over £30K.
I feel very lucky to be in this position as this is more than my parents have earned and I want to save the money wisely instead of wasting it.

I don't have rent or bill costs and am able to get the bus to work, which saves on the cost of a railcard/travelcard.

I was planning to pay around £200 a month into a help to buy (because I'm nervous that with a lifetime ISA you can only use the money for a house and I'm not 100% certain right now that I want to buy) and put another £300/£400 into a savings account.
I have some credit card debt that I would like to pay off around £400 a month. After this is paid off I would like to put £1000 a month total into savings.

In a year or two's time I should be on a higher salary and more certain if I want to buy and at this point I would move the money into a lifetime ISA for the higher bonus and close the help to buy.

I know that you can only open one ISA per year so I'm wondering if I should open the help to buy first or just start with a lifetime ISA?

I've also been advised to invest but have no idea where to start. I've heard of investing in gold? but I don't know.

Can anyone please advise on whether this sounds like a good idea? Also, where to begin with investing as a beginner?

Thanks :)

www.moneysavingexpert.com/savings/help-to-buy-ISA/

Get yourself over to Moneysavingexpert

For investments and learning about ISA, LISA etc then there are some great UK based podcasts, two which I listen to weekly are:
Meaningful Money
Money To The Masses
Both have websites as well.

Thank you!

Beware that if you pay into a Lifetime ISA you can't withdraw until you're 60.

@NotPennysBoat
That's what I'm worried about. I think I'll open the LISA with £1, save in a help to buy and fixed saving account then like 3 years before I want to buy put the money into a LISA

Lifetime ISA can be withdrawn from without penalty to buy your first home within a specified limit. You have to have the LISA at least 12 months, so if you are looking at buying in 3 years or so then that limit isn't an issue. The property you buy needs to cost less than £450,000. So that may or may not be a issue... probably your first home would cost less than that.

You could open a Help To Buy ISA and then transfer that later on to a LISA.

I didn't think you could transfer straight from a Help to Buy into a LISA, apart from the usual monthly allowance.

Plus help to buy ISA stops at the end of this month so you better hurry if you want to open one.

If your credit cards aren't interest free I would be clearing them first before putting the extra savings away (apart from the Help to Buy ISA)

I've opened the help to buy, thanks for all the advice.
I'll most likely open a lifetime isa next tax year.

My credit cards are balance transfers and interest free but I'm definately focused on clearing those first

Thanks again