What should a 21yr old life priorities be?

princessamy86

Pretty much as I expected but then I moved out at 17 so I was used to paying for everything. The only things which I didn't really factor in were things like boiler and central heating cover (glad I took it out as we've had our money's worth 10 times over), but there's loads of lists on here of what to expect to pay when you get your first house. I love it, I'm so glad it's my house and I'm not going to have to move every 6 months according to landlord's whims. I've made it just how I want it inside, I love where it is and I know I won't need to move for another 4 or 5 years. My one regret is paying too much, but I wasn't an EA then, just a very naive FTB who bought at the peak of the market.

Kay_Peel

Good question!

How best to invest your nest-egg. Unforgettable life experiences, property or leaving it in a savings account? Is 21 too early to be bogged down with mortgages, utilities bills, house insurance etc when you can live at home and have an extended adolescence/childhood - living for today and being dependent?

Personally, I would keep my options open and not touch my nest-egg just yet. I have a feeling that house prices will remain steady or fall slightly over the next 12 months - but there will be a rise in all the costs associated with renting/owning a house.

You don't know what your prospects for employment are just yet and you can't say (until you see that first pay packet) how soon you will be able to live independently of your parents when you get a job. If you blow your nest egg now then you close down your options.

I can't advise you, I can only tell you what would be going through my mind. Leaving the nest egg untouched, I would save for my 8 week trip and feel no guilt about spending those savings on a once-in-a-lifetime experience. I would not make plans based on the assumption that my parents would pick up the bill for my living expenses,(as though I were still a child) and I would aim to be fully independent as soon as I was able.

But that's just me - a saver, rather than a spender; a person who has never had to rely on parents for board and keep and who went into the property market at the age of 23 and did very well out of it. It's hard for me to get my head around the notion of grown men and women living at home when they have the wherewithal to move out - but prefer to spend money on treats and trips and toys. Very hard. :cool:

Person_one

I bought my place (with partner) last year at 24. There are benefits to owning over renting. For us a massive one is that the mortgage is about half what we'd be paying in rent! Also its nice to feel like the place is truly yours, to be able to decorate however you want, to know there's no risk of being served notice, or of the boiler breaking and a crappy landlord taking 3 months to fix it etc.

However, you have to rent for a bit first so you can appreciate the difference! I would actually recommend renting as kind of a 'practice run' where you aren't as committed as with a mortgage and you can experience some of the ups and downs of living alone, paying all your bills, budgeting etc.

MarieAAP

WD on the savings Simon, but do remember to take time out too.

I was in a similar position as PrincessAmy, and bought at the end of my 1st year of uni. In some ways I wished I had rented out my 2nd bedroom, as then I wouldnt have worried about the money at all, and have built up a lovely little nest egg.

And also remember that if you do buy something, that you don't buy at the top of the possible amount you can borrow. I was offered (with Mum being guarantor) to borrow £45k, but only borrowed £15k. By doing this, it allowed me the option of accepting temporary contracts in my chosen field rather than a perm in secretarial work, as my salary varied between £14-£25k!!!

It has also meant, that I have only a few thousand left to pay, on a house valued at £100k

Also PersonOne's comment is a good one

Soot2006

My OH and are both compulsive savers -- you do what you want with your life and we were both quite happy, both before we met and after, to live on minimal outcome (yet without denying ourselves - it's not an all or nothing decision -- we've had good holidays, we go out regularly, I have horses, he has a hobby) ... We did not have £24k at your age, mind!!!! However we bought our first home last year using our savings as a deposit. Result 60% ltv, affordable mortgage = we suddenly have more disposable income than ever ... which is mostly going straight into savings for all the nice things we want for our house ... new boiler, kitchen, structural work, conservatory, patio doors, bathroom, landscaping ... Will another few years but it was worth it. If you're a saver, you're a saver! I still pull a face when pasta goes up by 3 pence hahaha ....

cleggles

Myself and my bf are 24, we have just bought a house-we complete next week.
I dont think age is a particular issue but I think it is quite dependent on your friends and their lifestyles. Through saving up to buy we have had a rather frugal year or so and it is likely we will still be on a strict budget for the next few months but most of our friends are happy to have a quiet night in the pub or go round each others houses for a meal/drinks etc.
At 21 we were all still going out drinking away our loans, taking 99p flights to random cities and not worrying. If my friends were still like that I think I would have felt like we were missing out. As it is we can still socialise with our friends and lead a life we are happy with.
Just one last point-renting has enabled us to narrow down exactly what we wanted so we are really sure that the house we have bought will suit our lifestyle. Without some of the good (and bad) experiences renting I dont think we would be buying the house we have gone for but we know it is the one that will work for us because of these experiences.

Mini_Bear

Hi OP, i was exactly the same as you, at 14 started little part-time jobs, saved all my money through college and uni (i lived 300 miles from home at uni so couldnt save as much as i wanted). Im 24 now and have just shy of 70k.
To be honest the industry i work in (banking/finance) it helps to be flexible, i have moved jobs every 2 to 3 years and got decent pay rises each time. I have always rented cheaply in London, made some excellent friends and have family close by.
It has meant im flexible when it comes to relationships. I now live with my partner in Essex and we are looking to buy together. The nest egg i have created will mean we have a tiny mortgage and can enjoy ourselves.
Most of my friends think im mad not having the latest phone, ugg boots etc. I still live quite studenty. I do run a car which is my luxury and we have nice holidays.
I would say well done you, i wont give advise on house buying as i have waited. BUT i would def look in2 having a lodger in a 2nd bedroom if you did buy. This will increase your social circle if you pick right as well as your bank balance.

neas

just buy a house and rent a room out ... you will meet new people from lodgers and still have a good time too.. just cause you have a house doesnt mean your life ends.

tuggy

I'm 23 and when I was 21 I bought my flat. I had saved lots for ages and now I LOVE making overpayments, and have got my mortgage down as due to be paid off in 2 and a half years. Down from 15 years. The sooner you start arriving in the real world and leave the student life behind the sooner you can retire! and you'll have more money as an adult than your mates who only got on the ladder at 30 due to !!!!ing it all away on beer!

dianah

i wish i was as sensible as you when i was younger!

i think you need to find the right balance. savings are great but so is doing all the fun stuff you're supposed to be doing when you're young (whatever that is). i definitely don't think you should blow the lot!

my husband went travelling (before we met) and spent quite a lot of money but really enjoyed it. then, for some reason, went travelling again, to pretty much the same places and i think he spent about £15k on the second trip - he says it was utter waste of money. he enjoyed it the first time round though!