£50,000 Saved In 5 Years: Can You Do It?

ISAs are an easy way to reach your savings goal

13:00 06 March 2013

If you were to ask the average person if they thought they could save £50,000 in five years, the answer would probably be “No!’ But with a little discipline and by taking advantage of an increase in the ISA allowance, it’s not as hard as you think.

 

Saving money has always been hard for me. Spending I have no problem with. But saving for a rainy day has not been one of my strong suits. With the ISA allowance increased to £11,280 for 2012 to 2013, saving just got a lot easier. 

If you can discipline yourself enough to invest the full amount allowed for five years you will have saved £56,400 in five years, excluding interest and any gains from stocks and shares. That amounts to around £217 put aside weekly give or take a pound or two. It’s worth the commitment wouldn’t you say?

 

ISAs have been around since 1999, and continue to grow in popularity. There are many ISAs that you can choose from based on your needs. Do you want to be able to withdraw cash at your discretion?

 

Do you want to invest the entire allowance in stocks and shares, or would you prefer to split your investment 50/50 between cash and stocks/shares?

 

Whatever works best for you. Just remember to do your homework when investing in stocks and shares because you do want to invest in those that have a history of performing well in the market.

 

Saving is difficult because we make it difficult. My dad taught me that when you start saving consistently it becomes a habit, and you eventually don’t even miss the money that you put away for later.

 

I would rather live off less now, than have nothing to live off of when I retire. So make the sacrifice today for a better tomorrow. Invest in an ISA.