I have very little financial knowledge - any advice on what to do with my savings?

30 September 2021

Question by Madeline


I'm in my mid-20s and have been working as a veterinarian now for just over a year. Although I currently reside in the UK, and intend on staying in the country for the next 3-5 years, I ultimately want to move back to mainland Europe. I do not have much disposable income as I am paying off my student loan. However, I would like to start putting some money aside to invest for the future (mortgage, pension etc.).

I have about 2k in a savings account and would be comfortable to put aside about £100/month for long-term investment, and this will likely increase.
Given my situation and the fact that I have no time/interest in managing my investment, I am inclined to invest with my bank (HSBC) with a higher risk portfolio. However, having very little financial knowledge, I'm not sure if I'm making the right decision. While I also feel that I should start saving into a personal pension, I worry about 'locking' away my spare money into a pension especially as I intend to leave the UK.

Any advice on what to do with my savings would be much appreciated!
Thank you in advance!

Answered by Matt Angell

Hi Madeline,

Given your time horizon of 3-5 years then I would certainly consider using a stocks and shares ISA and setting up the regulars to go into the ISA. The reason for using an ISA is they provide you with a tax-free investment.

As you will be contributing month by month then you can afford to take a little more risk as you will be buying stocks & shares at different points which in turn should create a smoother less volatile investment return.

You will also have access to your money when needed but bear in mind that there is normally a slight delay while investments are sold down which is usually around 5 - 7 days.

Also bear in mind costs as they can heavily affect any investment returns that you can potentially receive.

I would certainly recommend that you have a look through the boring money guides which go into great detail and will certainly give you a good place to start.

Hope this helps and if you have anymore questions ask away...

Answered by

Matt Angell

Founder & Financial Planner

I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.