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" I've just been promoted and now earn an extra 500 dollars a month. I want to save the money to put down a deposit on a flat. What's my best option ? "

2007-04-07 21:32:39 · 9 answers · asked by Anonymous in Society & Culture Other - Society & Culture

9 answers

Hie there ,

Where do you stay ?

Anyway, it will probably take you between three and five years to save up a deposit , so you need to find a saving plan that ties-up your money for that ammount of time.

The safest way of doing this is to pay your monthly $ 500.00 in to a cash ISA ( Individual Saving Account), because you won't be taxed on the interest that your money earns.

For example, if you invested $ 500.00 a month for three years in the current virgin or Tier cash ISA ( paying a rate of 4 % ), you'd save $ 19130.00.

If you're prepared to take more of a risk, there are plenty of plans that invest in the stock market. You could make more money this way, but there is a risk you could lose some too.

" Savings aside, remember that house prices are increasing by around 7% ayear, so the longer you wait to buy a flat, the more it will cost. Talk to your bank about wheather taking out a loan to buy a place now could save you more in the long run. "

2007-04-08 03:11:36 · answer #1 · answered by BABA 1 · 1 0

If you don't already have six months' of salary socked away as an emergency fund, that would be goal No. 1.

Otherwise, if this is just extra cash, do as the person above says -- ladder some CDs (get a 1 year, a 2 year, a 3 year, a 4 year; then as they come due, regardless of whether you consume that amount at that time, be sure to purchase another 4 year, so that you always have a stable of the 1, 2, 3, 4 year CDs). Better option than a savings account, if you can wait to use the money (since you won't have to pay nutty fees, and the interest is usually better). Nothing tremendous, in terms of interest, but it's all safe and sound, usually insured, and there when you need it. For small amounts, that is. For larger amounts and for long-term savings you'd obviously want to also look into market investment options and funds.

And be sure you've got your retirement savings and medical-spending (dental, etc.) savings plans fully funded before splurging disposable income. As well as any other regular-life-maintenance item in your budget (auto insurance, health insurance, gas, future-auto savings, whatever). Give yourself a bit of a pad for the variable expenses.

If you have credit card debt, pay that off before you even save up the six months' salary. Acceptable longer-term debts are obviously education loans, home loans, car loans -- although you'll do all right by paying those off early, too, and owning your assets in full.

2007-04-08 04:44:44 · answer #2 · answered by Me 4 · 0 0

save the $500 and put it in the fixed deposit account. u should spend a per normal before the promotion

2007-04-08 05:09:30 · answer #3 · answered by Anonymous · 1 0

Putting it into bussiness would be a great idea. But I'm not good when it comes to source of income. Saving it would be easy. If you don't want to be tempted of using your money, keep it in a way you wouldn't dare getting it. Or if you're not tempted, just keep it. Conserve money! One more thing, don't buy luxurious things.

2007-04-08 04:48:16 · answer #4 · answered by terrorblade 3 · 0 0

3 - 12 month CD deposit! Great interest

2007-04-08 04:35:47 · answer #5 · answered by BigWashSr 7 · 0 0

Try a savings account until you save the amount you need.

2007-04-08 04:39:04 · answer #6 · answered by GoldE 5 · 0 0

INVEST--WACHOVIA SECURITIES, INVEST IN BANK STOCKS 4 EXAMPLE COASTAL FED DOES WELL,ERICKSON,COKE,WALLMART

2007-04-08 04:42:08 · answer #7 · answered by ttkmb 2 · 0 0

let me hold on to it

2007-04-08 04:36:06 · answer #8 · answered by Anonymous · 0 0

Give it to your mom..................

2007-04-08 04:36:40 · answer #9 · answered by Anonymous · 0 0

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