Salary Sacrifice vs Saving For A House Deposit -25, London

I am just about to start a 650p/d contract, which works out above £100k a year earnings. I'm aware that it's best to salary sacrifice any earnings above that threshold to avoid extra tax.

However I am 25 and looking to buy my first property and move out as soon as I can. I currently have 15k in my LISA, I would need to save for the full year to be ready to move out (400k-ish property, Outer London). I also need to top up my emergency fund as I am a contractor, which is only at 5k currently.

Is it silly to do the minimum salary sacrifice and put all my money into my house deposit pot & emergency fund, while losing out by getting taxed more than I need to? Then when I move out max out my pension, depending on if I'm still earning as much.

I know this has been asked before, but often the comments say it depends on specific circumstances (age, how long you intend to save for etc). But I apologise if it is still too repetitive.

Posted Mar 9, 2023, 9:16 AM UTC

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