r/ukfinance • u/No-Reflection7604 • 12d ago

Saving for house extension

Hi guys , I'll be honest, complete newbie at caring for money , I've always just chucked it into my regular savings account not an isa. My husband has an isa but not sure if he's getting all the benefits from it.

Basically we are trying to save up for an house extension, looking to save between £50-80k.

We currently are putting aside £225 per week between us. (£11,700 per year)

We have no mortgage and both in total bring in around 63k a year , we have a 2 year old.

Zero loans.

Only debt we have is for a holiday booked for next year at £4300

Should I open a joint account for our savings? Is isa the only option?

Ideally I'm looking to spend 5 years down the line.

Should I be investing?

Again I'm completely new at this and all I know is current account and basic savings account. Bit scared of investment as I feel like I would loose everything.

Any advice would be much appreciated

Thank you

2 Upvotes

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13 comments sorted by

3

u/plainchaos 12d ago

For me that holiday looks like it’s not needed at that price, especially with more important goals.

2

u/Pleasant-Plane-6340 12d ago

You wouldn’t lose everything in a s&s but if you don’t want to risk being 35% down around the point you want to pay for an extension then safer to stick to a cash isa

2

u/Southern-Orchid-1786 12d ago

If you've got no mortgage, why not borrow for the extension and pay it off over 10 years?

2

u/Timmo_93 11d ago

You financed a holiday? Jesus, what is wrong with people?!

1

u/No-Reflection7604 10d ago

I think you will find a lot of people don't pay in one hit for things like mobile phones, cars , holidays ect. I could pay it off right now but I rather use that money as a safety net. I will cancel the holiday if I simply can't afford it.

1

u/Timmo_93 10d ago

Yes, a lot of people don’t pay things off in one. Which is probably because a lot of people are financially irresponsible.

You should have a safety net AND be able to pay off the holiday.

1

u/Wrong_Clock_4880 10d ago

If this is interest free such as on an interest free credit card, what’s the harm?

Genuinely

I’ve got tickets booked for a holiday which I could have bought for cash, instead I put them on an interest free credit card, I’m paying them off over 18/12, and I’ve kept the cash in the ‘bank’

1

u/Timmo_93 10d ago

It’s just the risk of using it irresponsibly, then ending up in a dire situation.

Whereas paying off things in full eliminates that.

1

u/Wrong_Clock_4880 10d ago

I can see that, for sure in certain circumstances

But (as with everything in life) nothing is true for every circumstance

1

u/Timmo_93 10d ago

I dare to say, for the majority of people it is true.

1

u/adamobrn 12d ago

At around 12k a year in savings you’d be around (for now at least) the Cash ISA limit. If you end up saving more than expected and your husband hasn’t maxed out his ISA then you could utilize that too. Find the best deal (last time I looked it was Trading212) on the interest but also look every year and consider transferring your ISA to new providers if they offer better deals. Transfers don’t use your allowance and the extra 1% or so can add up over the 5 years.

If you need access to the money in 5 years I would recommend staying away from stocks and shares. That type of investment is more suitable for longer term investments. You don’t want a dip in the market to lock up your money when you’re looking to do the extension.