Author Topic: Brand new to saving - guidance on my loose plan  (Read 1134 times)


  • 5 O'Clock Shadow
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Brand new to saving - guidance on my loose plan
« on: April 14, 2016, 02:17:57 AM »
Hey guys,

Just started reading MMM about 3 weeks ago and found some great info to help think about saving and hopefully retiring early!

I'm 27 and I live in the UK.

I am planning on saving 50% of my take home pay each month from next pay check.

I'd really love any advice you guys have for where to save this money!

My plan at the minute is as follows:

 1)Put 5% of my take home pay into my pension as my company will pay in 7.5%. Work pension currently with Aviva. Have never paid into it before.

2)Put 25% of take home pay into a Help to Buy ISA for the next 4 years (essentially free 3k from UK gov at the end towards buying a house).

3)Put the remaining 20% of my take home pay into index funds for long term saving hoping to benefit from compounding and average interest of 7% over long run. I have been reading some into index funds but they are still a bit confusing to me. I would love to use the likes of Betterment however on reaching out to them have found out they are US only. I also like the sound of Vanguard for index funds but again not sure if I can use them as I am based in the UK. I would love to initially buy UK based Index Funds then US based index funds then Worldwide index funds.

4) Put my "spending" money outside of regular expenses/direct debits into the new 'Mondo' card to track my spending on everyday purchases and try to cut down on some of my everyday expenses to grow to save more than 50% of take home pay. I received the mondo card 2 weeks ago and so far finding it very helpful to make me aware where some of my money is getting spent.

I am brand new to thinking about saving and would love any advice or thoughts you have on my loose plan at the minute especially from those of you who live in the UK.

Warm regards,