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Where do I start?
Old 05-10-2009, 03:36 AM   #1
Confused about dryer sheets
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Where do I start?

Hello there,

I've got an issue, like i'm sure many others do. After paying the bills, i'm left with around 1000GBP to play with a month. The problem is, I have no idea where to start with turning this money into more money? It usually ends up being wasted on things I don't really need/going out/restaurants etc.

At this point, It doesn't feel like I have any clear direction, I feel lost and have absolutely no idea where to start putting this money? I can hazard one of the first responses I may get, which would be 'start saving', and i've already started. Where do I go from here??

Any replies would be greatly appreciated.


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Old 05-10-2009, 06:59 AM   #2
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m444rk, welcome to the forum!

OK, as you expected, "start saving". And develop a plan, which is what you seem to be asking about.

Have money go directly into savings with some form of direct deposit or automatic transfer. If you never see the money in the account you spend from you'll likely have more success in saving it.

Build an emergency fund of three to six months living expenses which you keep in a liquid account like a savings account or a money market account.

Start educating yourself on personal finance and investment. There are a number of good books and web sites that can help. Take your time and build your knowledge base, but build your savings as you do so. Even if your savings sit in a money market account for a year while you develop a strategy you'll be ahead.

I don't know enough about investing in Great Britain to have any more specific suggestions, but I'm sure others on the forum do.

Again, welcome aboard!


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Old 05-10-2009, 07:18 AM   #3
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The best answer you will get, educate yourself, make your own decisions. No one else has to live with the consequences except you. After 30+ years of investing, here is the best collection of sources I can offer Investment Books. And it doesn't have to take all your time, you can beat the averages with some basic knowledge and discipline. If you're looking for how to be in the top 20% percentile, you are entering the realm of snake oil salesman - beware.

You will get some great advice on this forum, there are some real stars here. But this is the internet, unfortunately you will get some bad advice, or at least advice that doesn't fit your circumstances here too. The only way to know the difference is educate yourself. If you don't, it's a roller coaster ride with great highs (you'll think you're really smart) and great lows (you will think you're really stupid, and not know why) - but you end up where you started (or worse).
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 05-10-2009, 11:56 AM   #4
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Location: Indonesia
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I am assuming your from the UK. I would suggest you look into these as a start. It's kinda of the ROTH IRA equivalent for UK residents:

Individual Savings Account - Wikipedia, the free encyclopedia

Good luck

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Getting Loaded
Old 05-18-2009, 08:31 PM   #5
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Getting Loaded

I'd highly recommend reading this book - Getting Loaded: : 50 Start Now Strategies for Making 1000000 While You're Still Young Enough Enjoy: Peter Bielagus: Books

It's an easy, quick read and isn't dry like a lot of financial books. It also covers a number of financial topics (not just a single topic like investing).
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Old 06-04-2009, 11:49 PM   #6
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Welcome to the forum! Having 1000 GBP a month to save is a great start, since you can make real progress relatively quickly.

I think the first thing to do is think about what you want to do with the money you'll save, or your life. Do you want to buy a house? Retire early? Travel extensively? Give to charity? Further your education? Knowing what you're saving your money for goes a long way towards helping you develop a sound and realistic plan, and it also serves as a powerful motivator to keep saving. Meeting goals you've set feels wonderful.

To begin with, I agree with Coach and Midpack -- building up an emergency fund equal to oh, say 6 months expenses (more if you're married with a family and the main breadwinner) in a liquid and safe account is a good start. While you're doing this, you can start reading books -- there's a recommended reading list discussion on this forum here. I assume that many of these books would be available in the UK.

Personally, I found Common Sense on Mutual Fund investing, by John Bogle (who founded the Vanguard Group) to be by far the best volume I've read on the subject. It's the book I wish I had read when were were just starting out (all of 8 years ago). Well done and very easy to understand, but not for lack of validity or detail.

Good luck and have fun!

"You'd be surprised at how much it costs to look this cheap." -- Dolly Parton
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