- Hold as much of the money you intend for a future house purchase within Isas as possible
- With an investment timeframe of five to 10 years initially put most of your money into higher returning assets
- The closer the time of the intended house purchase, the more you should have in cash
If you’re just starting your first job or receiving a pay rise, your next goal might be to save up for a first or larger home. If you don’t have the finances in place, realistically this is a goal for maybe five to 10 years’ time. But to be able to achieve it within such a timeframe, the way you save and invest from day one is key.
To lose as little as possible of what you save to tax, aim to hold the money you set aside in individual savings accounts (Isas). Cash and investments within Isas grow free of tax. You can also sell these assets within them without incurring capital gains tax (CGT) and withdraw from Isas tax-free.