TL;DR How much should I keep as an emergency fund and how should I prioritise/distribute anything surplus to this?
I currently have about 5-6x my monthly salary in savings. Currently I keep this all in an instant access ISA, but as my savings grow, I realise there are better ways I can use the extra money.
My options seem to be:
- pay off existing loans
- store money in a different account without instant access for higher interest rates
- invest (I'm quite ignorant about investing however)
- pension (I don't currently have a plan).
- change nothing
Some other information:
- I have a car loan with about £12000 outstanding
- I have a mortgage with about £80000 outstanding (this is shared between 2 of us)
- I have a student loan. I don't know the outstanding amount and payments are taken straight out of my pay. With the current government plan, this is written off after approximately 30 years (that's 25 years remaining)
- I'd like to have children in around 5 years.
- I'm in the UK.
- I'm 25