Hey all,
45-year-old here. I waste around £50 a month on the lottery, which seems pointless. I’m thinking about investing it until retirement instead. I already contribute 14% of my salary and my employer adds 10% into my pension each month, so I’m wondering what other options are worth considering. I’m not too savvy with finances, so I’d really appreciate some input from you all.
Thanks in advance.
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High-interest fixed-term monthly saver might work. When it matures, put the balance into an ISA each year.
With a 6% interest rate, you’d save about £616.50 per year with a monthly deposit of £50. In a 5% ISA over 20 years, you’d have invested around £12,330, and your ISA could be worth about £20,637 due to compound interest.
If you bumped it up to £75 a month, you’d deposit £18,495, and your ISA would be worth around £30,955 after 20 years – that’s a decent boost from compound interest.
I’m surprised by how many suggest premium bonds. Unless you’ve maxed out an ISA allowance and can hold a big amount, it’s usually not worth it. The odds are still low, like with the lottery.
@Vic
Yeah, that’s pretty much why I’m looking to invest – tired of gambling my money away. Took me a while to figure that out, but now it’s time to focus on a solid future plan for me and my family. Thanks for the advice.
If you still want that thrill of a possible win, you could set up a monthly transfer to premium bonds.
Yan said:
If you still want that thrill of a possible win, you could set up a monthly transfer to premium bonds.
I actually do this. Only put £25 a month, but it keeps that little hope alive. This is just extra on top of my regular savings!
@Oli
Exactly, you never know! Plus, you can pull the cash out anytime if needed.
@Oli
I do something similar with £35. It’s small, but feels like a low-risk lottery. I check it occasionally (though I never win) and then just forget about it.
Zander said:
@Oli
I do something similar with £35. It’s small, but feels like a low-risk lottery. I check it occasionally (though I never win) and then just forget about it.
They’ll email you if you win, so you don’t have to keep checking. It could be a nice surprise one day!
Zander said:
@Oli
I do something similar with £35. It’s small, but feels like a low-risk lottery. I check it occasionally (though I never win) and then just forget about it.
Honestly, I prefer premium bonds for the ‘lottery’ vibe without actually losing money!
@Oli
How do you set that up? Is it through NS&I?
Yep, NS&I makes it really simple to set up transfers. I’ve won £50 a couple of times and even £100 once in three years.
Yep, NS&I makes it really simple to set up transfers. I’ve won £50 a couple of times and even £100 once in three years.
Nice! So, you just sign up on their site?
@Kai
Exactly!
@Kai
Yep, just set it up online. It’s super easy!
Yan said:
If you still want that thrill of a possible win, you could set up a monthly transfer to premium bonds.
I have premium bonds and sometimes win £50 or even £100. Last month, I got lucky with £150.
@Kade
My partner won £50 last month too!
We managed to get £300 this month and £350 the last! Though, it looks like rates will drop soon.
The more bonds you hold, the better your chances. That’s why it’s more about volume.