What is the best thing to do with my disposable income?

OpenToSuggestions

OpenToSuggestions

OpenToSuggestions

Soldato
Joined
5 Aug 2006
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Location
Derbyshire
I am currently on a PhD stipend but as I am in a warden flat I have no rent, no bills, no council tax (as student) and no food costs mon-fri.
After weekend food and paying for a few things to keep the car on the road. plus buying myself a few nice things I am left with £700 per month.

I have a 3% interest ISA and my student loan is a little over £5000 but as it is at 1.5% it just seems pointless to have barely a penny to my name after clearing it. I have no other debts.

I am interested in what I can do constructively with the money. I am thinking save for a house deposit, because long term renting is a waste of money. If I do chose this route, is an ISA the best way forward?

Oh and also, in before:
- Thai bride
- Rent boy
- Put it on red
- Put it on black
- Give it to me
- Worst I have money thread ever (I don't have lots of money I just don't have lots to spend it on in the near future)
- Jesus.jpg
 
Craft a 1000ft solid granite penis.

Then when anyone challenges your manhood, mention that yours can in fact be seen from space.
 
Sir, I am writing as the prince of abasgasdgsas in northern Nigeria. My father was involved in dark magic and sadly passed away after becoming invisible for 2000 years instead of 0.2 years. You were picked out of a lucky hat as the heir to his fortune.
So far he currently owns
2 lions
5 snakes
55 wales
1 gilly
and 50p in fortunes.
Please reply if you are able to receive your funds.

Your sincerely

Doctor John Mike
 
Just keep putting away the money you don't spend. Interest rates are low but this doesn't mean saving is a bad idea - you still end up with a lump some at the end of the day which you can then use for purchase big and important things like perhaps a car or a house or something. Spend what you want and slice the rest off each month and put it away for when you need it.

Fill your ISA allowance each year then put the remainder in an easy access savings account, the Santander eSaver at 3.1% is a good bet at the moment.

Other investment options carry more risk and with the amount of money we are talking probably wont exactly make you huge amounts more money anyway.

Interest is only part of the savings story. Remember, the primary point behind saving isn't to earn investment income, it's to... save money into a big pot so you can buy things which cost more than you earn in a month.
 
Thanks for the replies so far (the sensible ones :p).
Technically I earn £0 per year as far as PAYE goes so a non-ISA savings account could be much better for me than an ISA!
An important point that the mother makes is that I will (almost certainly) never be in a position again in the foreseeable future where most of my income is not already accounted for and so I should save a lot each month as if I get used to blowing £100s per month then when I do buy/rent my own house I will hate having just a bit of money left to play with each month.
 
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mglover070588 said:
Thanks for the replies so far (the sensible ones :p).
Technically I earn £0 per year as far as PAYE goes so a non-ISA savings account could be much better for me than an ISA!
Click to expand...

This is technically true and a Santander eSaver Issue 4 at 3.1% gives you totally catch free instant access whenever you want and you wont pay tax on it.

However one day you will pay tax, and if you've been using your ISA allowance each year beforehand, you've still built up a load of tax free savings.
 
3% for an ISA sounds pretty low

how about treating your parents to something once a month, a meal out or a weekend away every other month? any siblings you could treat? sharing the wealth (well, disposable income) is a good thing. treat yourself to something each month and save the rest.
 
cm1179 said:
3% for an ISA sounds pretty low

how about treating your parents to something once a month, a meal out or a weekend away every other month? any siblings you could treat? sharing the wealth (well, disposable income) is a good thing. treat yourself to something each month and save the rest.
Click to expand...

A lowly 3% for an ISA is the going rate at the moment :(. I am with Halifax online and I check it weekly to ensure the interest rate hasn't decided to drop to <0.5%.
Dad passed by tonight and we went out for some food and I paid. It was only £30 but it was nice to return the favour after all these years of helping me out at uni, even if it was just the one meal!
Good point Fox about the ISA.
I have a 11 year old Micra and it never breaks, plus I only use it once a week as I walk to work so it seems daft me blowing my savings on a newer car just because I want one even though I would barely use it.
 
Deffo save it.

If you are not happy with interest rates atm you could buy permium bonds at £100 a pop, they will always be worth £100, you wont get any interest but you might get lucky and win big :)
 
If you fancy a bit more of a risk for potentially greater reward, then you could consider a Stocks'n'Shares ISA.
 
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