Ndubuisi 'Andy' Egwim walks through the order: build an emergency fund first, automate savings into a cash ISA, then move surplus to a stocks & shares ISA once you have three months' expenses saved. A cash ISA is a tax-protected savings account.
No, no. You put your salary in your regular account, so that's the account where things start. So that's starting point then. Number two, before you start investing, you want to make sure you saved up your emergency fund. How do you save that? Don't transfer it every time. You set up a direct debit, automatically sending it into your cash isa, where you save it so that when you have three months worth of living expense, you can then start transferring that. So you transfer directly to your stock and share licer. So you set up a system so that it works whether you're busy or stressed or somebody is demanding money from you. It just. There's a system in place that makes sense so far. Right? Does that make sense, Nneka? So far, no. So the emergency account should also be isa, is that what you're saying? Yes. So the emergency account is the savings account. You know, people talk about ISAs, and I see with very senior doctors who were actually born in the UK, they think all the ISAs are the same. Like one told me that for 20 years you were just putting money in the cash ISA. They're not all the same. Your cash ISA is your savings isa. It's just a savings account that is tax protected. If you want to set up a direct debit to go from your salary account to the ASH isa, it's just going into a savings account, but it's tax protected.
