The last few years have really taken their toll on us financially and we have no savings. However, we are in a really fortunate position in that (aside from overdraft) we have no debts as we have no credit cards or loans other than our mortgage. We made a conscious decision to organise our finances like this because we had found ourselves in quite a lot of debt before we had children and we didnt want to repeat that situation.
Unfortunately before Christmas we were burgled and we have finally go the insurance payout. Its not a lot of money, however, a lot of what was taken was my grandmothers antique jewellery which simply cannot be replaced. I’ve thought long and hard what to do with the money, whether I should attempt to buy some nice jewellery to make up for it. But, lets face it, it wont be the same will it. So, i’ve decided that I’m going to for the first time in many years, put some money into savings.
When you start looking at saving accounts there is a bewildering amount of information. I’ve been reading The Telegraph money section for the past six months to try to get a flavour of what to do with finances and focussing since Christmas on savings (possibly for moving house, university fees and rainy day emergencies). I’ve also been wanting to do something with the eldest children’s Child Trust Funds. One of the brands which is often mentioned is Nutmeg, so when they invited me to have a look at what they offer I thought I’d dive into their website.
Nutmeg is an online investment fund. This means that unlike a traditional savings account where you put money into the account in exchange for interest, Nutmegs Investment Managers will invest the money in a portfolio of stocks and shares for you and you’ll get the profits. There are loads of different options and ways to save with them, but there is an element of risk. Given that you’ll effectively lose money by putting it into a savings account at the moment due to inflation you don’t have a lot to lose.
I selected the ‘Try Nutmeg Out’ button on their website to see what the variables would be before I signed up for various accounts. I thought this was incredibly useful and interesting. If I set my risk level at medium and invested a reasonable amount each month even with an ISA I would potentially make far more than if I invested in a standard high street ISA. Interesting. I’d urge you to have a go here on the Nutmeg website, its quite quick to do but there are so many options that you’ll find yourself trying them all out to get the best return.
If I haven’t explained that very clearly then do check out this YouTube video which is helpful:
Overall, its looking increasingly likely that I’m going to put my money into Nutmeg and see what happens over the next few years. I’m trying exceptionally hard to be very frugal with my spending at the moment and i’m becoming quite adept at saving and utilising coupons. The other day I saved nearly £50 by adept use of coupons in Waitrose. Silly though it sounds, any money which I save on these coupons at the end of my till receipt i’m putting to one side for the savings account. Its one way of saving when you don’t have any spare. I’m also trying to drag us out of the monthly overdraft by finding bits of freelance work here there and everywhere. Slowly our finances are improving, long may it last Perhaps this time next year I’ll be able to show you my Nutmeg statement!