How would you save/invest £800 per month?

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Assuming the following:

• currently making 10% pension contributions plus a generous match from employer
• six months of expenses in emergency fund
• have a low rate loan for home improvements from 2021 with four years remaining
• mortgage overpayments are a TBC as I may be moving in the next 12 months
• I'm in my mid-30s, single, no kids

How would you allocate £800? Currently looking at my goals for 2025 and beyond.

If you’re not currently contributing to an ISA, I would do that. Invest the ISA in a mutual fund that tracks the US market.

low rate loan for home improvements from 2021 How low? Is there a penalty for paying it off early? If the rate is higher than you'd get from investments, and the early redemption penalty isn't prohibitive, then pay that off.

If you may be moving then I guess save into an account you can easily access in order to put down a bigger deposit on your next house. An ISA could be a good idea if you haven't maxed out ISA contributions for the current tax year. As you may know, an ISA is just a tax-free "wrapper" which can be applied to different types of accounts, so make sure to choose one which lets you get your hands on the money when you need it.

Speaking of which, where have you invested your emergency fund? That's a lot of money, so make sure it is earning good interest.

ISA Trading 212 account online. Stocks and shares ISA Trading 212 account online

Very likely pension, Lisa, ISA, or mortgage, but hard to say beyond that. It depends on how long you want to invest for and what you want to spend it on.

Marking place in the hope of learning something useful 🙏

The loan rate is 2.2% - no penalty for early repayment. I could put the money into this but it would mean no saving for some time.

The emergency fund is currently in a cash ISA earning 4.8% - that's a bonus rate so I'll need to move it in a few months.

I have decent equity in my house so am hoping this will cover the moving costs and deposit.

S&S ISA is what I was thinking for some of the money at least.

Oh, definitely don't repay the loan then! You can get considerably more than 2.2% by investing it.

S a d S isa - all of it!

S&S ISA in a world index tracker fund 100%

Is there a particular S&S ISA anyone would recommend? I've done a bit of research but the brands are quite different to the banking brands I'm more familiar with.

Hoping you get answers OP, I’m very interested in this too, have got my emergency savings to a good place and now need a tax effective way to manage a new pot moving forwards!

What platform do you want to use nutmeg interactive invested, best invest hargreve and landowner etc.
What platform fees then choose an eft which is a basket of companies, many on here use vanguard or Blackrock.
I hold a variety through h and l.

I'm invested in the FTSE global all cap index fund accumulation. It's a vanguard fund and I use the vanguard platform, however vanguard have recently increased their fees for smaller holdings.
Look at a platform with the lowest fees and go from there. The vanguard funds are available on other platforms as well.

I’m completely clueless about investing so would welcome an idiots guide thread !

What are your goals for the money OP?

As a single person with one income, I would always prioritise minimising risks rather than maximising returns ( and I've still invested for many years with good returns). This is a different strategy than that which would suit a couple and even many singles.

I would:
Beef up the emergency fund to two years worth of expenses, plus sufficient savings for initial private medical consultations. (A broken leg with complications for instance, and 6 months fund can disappear rapidly).

Buy some critical illness insurance to cover your salary that kicks in after the two years of savings are depleted (the time delay will reduce premiums).

Pay off all debts, including mortgage, regardless of the interest rates (minimises debt risk). Paying off the mortgage is still an investment in property.

Transfer your cash ISA to a better rate (Trading 212 for instance pays 4.9% on its cash ISA).

Investments are attractive because over time it beats the eroding effect of inflation on cash savings and preserves wealth. They are inherently risky and some more volatile than others. When inflation rears its head its not a dragon easily slain - there may well be more to come in the pipeline.

The US stock market has made fantastic gains over several years. There are warnings about it being overvalued and overheated. The 'Magnificent 7' tech stocks are dominating the S&P 500 index, and also the Global market Index. They might continue to do so and grow exponentially, or the bubble might burst.

My exposure is now limited to 30% of my investments in this market. It feels a percentage I am comfortable with. I may lose out on more incredible gains but it fits with my risk averse strategy. I still have a toe in the water there.

At the moment short term money market rates are beating inflation - Vanguard Sterling Short-Term Money Market Fund is returning about 5.13%. These tend to be much less risky than stocks, with a steady return.
I also utilise 5% of capital to invest in undervalued markets that I think might give a good return in growth or dividends. I stick to index funds and low cost platforms with a transparent fee structure.

(I'm not a financial adviser and my strategy might not suit your profile).

Thank you for those last few messages.

My goals are:

1. To be prepared for emergencies - as PP says, I'm on my own so I don't have a second income in the household to fall back on

1. To give myself some flexibility in future - this could involve a career shift, relocating etc.

My mortgage is around twice my annual salary, so it's manageable. As mentioned, I am hoping to move in the next couple of years. I have good equity in the house to cover a deposit, fees and possibly even repaying the loan I took to replace the kitchen and make other home improvements. I'm not against repaying some of this debt, though.

Definitely open to increasing my emergency fund. At the moment, the monthly amount is based on the amount I typically spend each month (I.e. not including savings). It doesn't account for emergencies if I was unemployed, but it is quite generous, in that I could live off less each month by tightening my belt.

How much are the employer contributions to your pension and what is the current value of your pension(s)?

I think I would be tempted my the advice from a previous poster to play safe and increase your emergency funds, unless you are looking behind on pensions.

Lloyds have a Club Saver account currently paying 6.25% interest but you can only put £400 in a month