Chat for people about tiny savings and investments

[Phase2]

So I don't find it very relatable on here; I can't afford to dump loads in my pension or max out an ISA. I'm sure I'm not alone and thought it would be nice to chat to others trying to do what they can.

Thanks @Saracen I think the problem is I don't have several thousands to invest anywhere. Maybe £1000 a year maximum.

Yes, so if you put £1000 into a pension, you'd get an additional £250 top-up from HMRC right away, which is well worth having. For a young person, the financial benefit of that might not outweigh the inconvenience of having the money tied up where they can't get at it for decades. But you don't have that problem. For you that £250 is very significant, especially if you are going to take your pension soon.

The reason I mentioned "several thousand" was not to say you HAVE to put that much in. It's just worth knowing that if you have no/low earned income, you can only get that top-up on contributions of up to £2880 per year.

I've been a carer for years and I wrongly thought I wasn't eligible to contribute to a pension at all because I have no earned income.

Thank you, would it appear as tax relief? I have a pension from an old work place that I've started paying £50 a month into.

I just wanted to pitch in to say this. When I first started work my mother said, always save a tiny percentage of your wages, no matter how small. You won't miss a tiny amount and at the end of a year or five years it will make a nice nest egg. But I earned so little that the amount I could put away each week was so small it seemed absolutely pointles doing it, so I didn't.

After seven years I got the chance and expectedly to buy my first property. All I needed was £500 for fees and expenses, but I didn't have it because I had ignored my mother's advice. Had I just put by couple of pounds a week I'd have had £700 the end of seven years!

I'm trying to save/invest now and do a lot of reading on it. I'm able to pay in more to savings and pensions than OP but not like some of the sums you see mentioned on mn

One thing I'd like to mention is, if you are paying into a pension check the risk factor of the fund. A lot of workplace pensions are low risk when you first join and then reduce the risk closer to retirement. Most people have time to select higher risk funds.

Hi, the pensions one is frustrating - I started off well and then life changed and I've only just been able to pick it up again.
I'm really finding Santander hub very complicated , does anyone else use it?

I like the savings pots with the new banks. I started my savings with named pots for things that usually ended up on the credit card, like Christmas presents and day trips. By having the money before the event, I was then able to save a bit instead of constantly paying off the credit card.

When I paid off my old car on finance years ago, I put the same amount into an isa, so I didn't get used to having the money. It meant that when that car died, I didn't need to get a big finance agreement for the next one. Most of my pots are for shorter term things, so I don't save much. But it does avoid debt and the associated interest, so definitely better than before. Also the pot for presents Can become the pot for car failed its MOT if needed.

Great thread

Loving this thread. Last year I opened the nationwide savings account with 8% interest. It matures at the end of the month and I saved 2400 with around 192 being paid in interest. Opening another account with them that has 6.6% interest rate. I can just about afford to put away £200 every month and this way I get a little bit extra as a reward for saving

@SprigatitoYouAndIKnow I tried the pots with Monzo and I realised I just had loads of tiny amounts all over the place so I kind of tried to reduce them.
Currently I have Santander 7% aiming for £4000 (the max for the interest) but nowhere near even £1000 yet.
I have an ISA with Santander which is far too complicated and already lost value after moving it from Monzo.
I set up a new account for the rent my adult kids are going to pay. I think I just need to work out how to use it - probably the excess gas/electric

I have always been a saver. When I was on mat leave, money was really tight but I still transferred £20 every month on payday so I could see my savings grow.
Every time I have a bit of unexpected money, whether a credit from electric company, small payrise, natwest rewards, I transfer straight to my savings account, as I’ve not needed that money in previous months.
Goodluck everyone. Will be following for tips!

My father used to buy a gold britannia every year as a very small part of his investment portfolio. Historically they double in value every ten years, so he has a fair amount built up if he needs to sell them.

I'm having to Google this !

Unless you put the whole £2400 in at the beginning the interest is going to be less that £192. If it is a regular saver that you have been putting £200 into each month with an 8% interest rate the interest will be around £105 after a year. It can vary slightly depending on whether interest is calculated daily or monthly and when you actually put the money in.
This is because you are only actually earning interest each month on what you have saved so far so first month is 8% on £200, second month it's on £400 and so on.

If you're between 18 and 40, Martin Lewis explains why you should open a LISA immediately, even if you only put £1 into it.

TL:DR if someday you suddenly find yourself in the position to buy a house, you can use a clever trick to immediately receive £1000. Basically you sling £4000 into the LISA, the government tops it up by 25%, and you remove the resulting £5000 to use toward your house purchase. It only works if the LISA has been open for a year, but you can have a LISA open with just a pound in it. So open it now and start the clock ticking on that, just in case.

about 28 minutes in:
https://podcasts.apple.com/gb/podcast/the-martin-lewis-podcast/id520802069
https://open.SPOTIFY.com/show/6tsU1ycENJzlaViEw0aAQq
https://www.BBC.co.uk/sounds/series/p02pc9xt

I used one to buy my house last year, it’s a fantastic scheme. I kept £1 in there in case I wanted to use it as an additional pension pot too

ISA might not be the best choice if you are not going to go over the personal allowance of interest earned before it being taxed, you might be better off with a higher interest savings account. As pp said, any saving is good no matter how small so well done!

I started saving after university, and although some months I had only £10 spare to put away, I did it to keep up the good habit. Eventually (it took a long, long time!) had enough for a deposit on a property and I felt so proud. I often wonder whether if I’d broken saving something every month, no matter how small and insignificant it might’ve seemed at the time, I would’ve been able to pick it up again.

LISAs sound brilliant, wish I wasn't too old.

I've just never had any real ability to save - either psychological or literal because I had no spare money (was a single parent pre tax credits and it was grim).

I did this and it has matured today - I got £103 added due to compound interest.

Just managed to hit my £1,000 goal in my Emergency Fund, so pleased and relieved!

Now to decide whether to continue saving in my EF, or to start saving towards Home Reno costs… Or both?

Congratulations!!! That is brilliant. It must be a weight off your mind to know that there are many emergencies you can cope with.

Thank you, it really is!

Same here lol