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Stdith

£250 a month...

£250 a month  

32 members have voted

  1. 1. How would you spend it

    • 5% interest account.
      5
    • "Best value" Sovereign.
      25
    • Silver. Best deals you can find.
      2


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£250 a month. What would you do with it? 

1, Put in an 5% interest savings account.

2, Buy 1 "Best value" Gold sovereign.

3, Buy Silver at the best deal you can find per month.

 

Interested to know your thoughts.

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£250 a month. What would you do with it? 

1, Put in an 5% interest savings account.

2, Buy 1 "Best value" Gold sovereign.

3, Buy Silver at the best deal you can find per month.

 

Interested to know your thoughts.

Is this 5% account only upto £2000?

 

I would buy 1 Sovereign a month personally as its easily disposable on here.

 

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4 minutes ago, shawy2510 said:

Is this 5% account only upto £2000?

 

I would buy 1 Sovereign a month personally as its easily disposable on here.

 

£3,000 per year. Max of £250 per month 

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If it is an emergency fund, then keep it in cash, surely ? You should always have 6 months’ worth of salary in cash for emergencies or “life events.” If you have that, then I would go with £50 cash, a half sov and the rest the cheapest uk silver coins you can get if you live in the uk.

Edited by Oldun

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Cash is best for emergency fund. Stay away from silver its not liquid enough for an emergency fund. Both metals have their volatility moments too makes it hard to rely on gold completely for emergencies. I hold cash and sovs 50/50, gold is easy to sell but still takes time hence the primary on cash. 

I still clicked spend the 250 on sovereign though couldn't help myself. 

Oh just noticed you are saving £250 per month must be a regular saver? If so that's not the ideal emergency fund vehicle as it will take time to release the funds, you give up your interest and there are sometimes charges to do so be careful. Better to have in a 'high' interest current account, play the game, set up 2 meaningless direct debits or standing orders going in to meet the criteria.

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When i say emergency fund I mean it would be the last resort, not my back up funds incase of lack of work, illness etc.

I'm drawn towards the Sovs because it gives me something to look forward to and could be liquidated if needs be. Just having funds drop into saving by DD isn't all that exciting. 

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1 hour ago, Stdith said:

£250 a month. What would you do with it? 

1, Put in an 5% interest savings account.

2, Buy 1 "Best value" Gold sovereign.

3, Buy Silver at the best deal you can find per month.

 

Interested to know your thoughts.

I save around £600 to £800 a month and if I had £250 and currently didn't own a home ( like I do not ) I would open a Lifetime ISA and save the max you could then each tax year get 25% bonus of what you save up to a maximum of £4000 so the max is obviously £1000, only downside is the money must be spent on your first home or retirement and you can't withdraw without a fee otherwise, so I max that account and buy 1 or 2 Sovereigns per month.

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46 minutes ago, Oldun said:

You should always have 6 months’ worth of salary in cash for emergencies or “life events.”

I'm going to call this out: that's enough for a deposit on a house! Declaring that everyone should have that at all times is pretty extreme IMHO. I appreciate having emergency funds is important (and if you're struggling to put any money aside, stacking may not be the best option) but it is really really hard to save money if you're on a lower income, especially if renting or living somewhere with a high cost of living.

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Feel free to argue with a professional certified financial advisor then.

 

3:00 minute mark....2 months pay in a checking account and 3 months in a savings account.......but before that, clear all debt.

 

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8 minutes ago, Oldun said:

Feel free to argue with a professional certified financial advisor then.

 

3:00 minute mark....2 months pay in a checking account and 3 months in a savings account.......but before that, clear all debt.

 

Ok but that video is basically tailored to "I have disposable income but am disorganised" not people who don't have large amounts of disposable income. I'm not saying that having that amount of savings isn't good, just that it's a little unreasonable to presume that everyone can/should have that.

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I vote sovereigns :)

 

it's returns are ~8-12% on average in the last 20 years.

things might change but a good start to the year price wise

means the trend may hold for longer yet.

it's more liquid and last year gold beat silver.

once you have some gold and maybe gained some

experience then consider allocating some to silver.

silver is difficult to time and turn a profit at the best of

times, and takes more time and effort. the rewards

could be worth it but that judgement call is better made

after you have more experience.

 

HH

Edited by HawkHybrid

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1 hour ago, Oldun said:

If it is an emergency fund, then keep it in cash, surely ? You should always have 6 months’ worth of salary in cash for emergencies or “life events.” If you have that, then I would go with £50 cash, a half sov and the rest the cheapest uk silver coins you can get if you live in the uk.

6 months is a bit tight , make it 9 months ( 100% wages before tax )

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6 mth wages seems to much, and quite unrealistic for many.  I always gone with a guide of 3 mth wages, plus cost of a boiler as a guide (if your on low salary, might be the same as 6mths...), and that "boiler" money is there to be spent on things needing fix (car, breakages etc).  This is what lead me to silver in the first place, something to do with "excess" saving that was a bit more interesting than chasing % rates. Its nice to earn 5% on saving over the long term but dull.

So assuming some savings already on hand, the answer is metals.  And how about alternating?  one month a sov, next a bundle of silver?

 

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I clicked 1: Savings account before I read that it was for an emergency fund.

So I suggest 4: Cash at home (I'm assuming your current bank account is healthy :)).

And here's where one has to define 'emergency fund'.

Cash will solve most problems instantly, whether it'll be a plumber, sparky, vehicle repair or recovery bill.

A hard up mate, an emergency taxi call or maybe a take away delivery. Let's not forgot Joe the Pole turning up with some moody gear that you just can't turn down....cash only my friend ^_^

 

Don't worry too much about where to keep it. Cash is easy to conceal in a thousand different places. I usually recommend the fridge but after a great deal of research and consulting the industry professionals it came to me. Where is the best place to store cash in case of a fire? :D

 

20180113_144426.thumb.jpg.0ff996ed1c0cb84e8c3118edfee0ff1a.jpg

 

 

Edited by Roy

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2 hours ago, Roy said:

I clicked 1: Savings account before I read that it was for an emergency fund.

So I suggest 4: Cash at home (I'm assuming your current bank account is healthy :)).

And here's where one has to define 'emergency fund'.

Cash will solve most problems instantly, whether it'll be a plumber, sparky, vehicle repair or recovery bill.

A hard up mate, an emergency taxi call or maybe a take away delivery. Let's not forgot Joe the Pole turning up with some moody gear that you just can't turn down....cash only my friend ^_^

Very good point.  On a basic level always keep enough cash in hand to pay for day to day expenses. I've twice experienced localised but significant network outages ATMs and shop terminals were down, so only those with cash could get their lunch. 

Could try to offer a tradesman a half sovereign for emergencies? :lol:

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