What is your long term saving strategies?

Hermanmunster_2

I think wages are going to stagnate in the industrialized west because the east is industrializing and to stay competitive we will have to take less and work harder .

There are a billion people in the east with the same dream you talk about to compete with. I am not saying you can’t do it or that it hasn’t been done many times before in the economic times we have just been through.

But and it’s a big But .Past performance is no guarantee for the future and I think the whole world market place including the UK are in for some pretty substantial changes of accepted fortunes.

On a better note, the single most important habit you can form is the habit of saving which will allow you to accumulate riches. It takes discipline though .In fact discipline is the second most important thing you will need. Good luck in your Quest.

DebtWriteOffMaster

Lokolo wrote: »

Last year I earnt £1200 a month and managed to save on average £500 a month, so my expensives where around £500 a month. (less if I wanted a spend month though )

So to save £1,500 I would need to increase my earnings to £2200 a month, which is £35k. So the £32k isn't far off from a realistic target.

You live in a really cheap tacky area thoigh which is why your rent is so tiny!

Lokolo

DebtWriteOffMaster wrote: »

You live in a really cheap tacky area thoigh which is why your rent is so tiny!

I do this year, I didn't last year.... my rent is only £200 a month atm

Rob_192

rictus

I really admire your spirit. For someone of your age it's admirable, however, there are a few things in your strategy that you need to adjust.

The plan so far is to treat £1000 a month like it isnt even there. As soon as i get it on payday, get rid of it and hide it in savings accounts

This is the perfect way to save, the old pay yourself first strategy, but savings accounts are not the real answer. You need to be investing for any serious growth. As others have already mentioned savings accounts will only really deal with the compound effects of inflation. It's one thing assuming your wages will rise with inflation, but if your life savings are only doing likewise, you are not actually going to be very rich in relative terms in 30 or 40 years time. I know you will be thinking you know best and it's difficult to fault your general atitude towards saving, but just take a bit of advice from those of us who are a bit more mature and have been there before.

Furthermore, what are you actually saving this money for? That's not a flippant question, it's a serious point. One reason is presumably to provide a comfortable retirement, in which case you need to be investing inside a pension as soon as possible. I assume also you are maxing out your Isa's etc in order to save a s efficiently as possible from a tax point of view.

The other thing I would say is don't get too anal about saving just for the sake of it. Enjoy your life along the way, you only get one life and trust me, it doesn't last as long as you might think at your age!

Generally though, keep up the good work;)

rictus123

KPR11 are you able to tell me more about managing my own pension then? The 25% instant boost obviously counts for alot. If im putting away £1317 a month, thats £15,800. £19,755 if i was to get that 25% boost. A fair difference. The thing is i wouldnt want to put away that sort of money and not have access to it for 40 years(at 60 years old) Well the way they do it at my work is they get a price per square metre. In the summer when building more, they hold back some of the work to cover for the loss of work due to poor weather in the winter. Plus they work 35 hour weeks in the winter. So there salary is pretty much evened out over the year.

I am aware that this will not go exactly as i plan it to...but my dreams will not shatter. I wont give up on them unless im pysically unable to*note, im not going to work myself into the ground for this* yes il work hard but im not going to harm myself. If its getting too much il slow down.

Sorry but what is blt? Buy to let?



Lokolo thats impressive figures...I wont know until the end of June/start of July but i reckon il be taking home £3.5k a month...thats on either long hours, 6 days a week or sort of shorter hours spread over 7 days then take a Sunday off every 2 or 3 weeks. All this work will pay off in the end. Iv got until June to get myself sorted out/plan/accounts in place for when im time served and getting the salary i speak of. Saving £660 a fortnight should still leave me with more than £1k a fortnight....plenty id say seeing as im not even on that yet....


Im staying at home with parents...this will definatly work in my favour and make it easy to not miss the money to start with...If its too much i will reduce it. But i will be putting at least £1000 a month away in the summer. Maybe a few hundred less in the winter, il just have to see how it goes and go with the flow.


Lokolo did you get your Mazda Sport? Not in your sig anymore....

Anyway cheers for all the sound advice, i need it!

LongTermLurker

rictus123 wrote: »

Thanks for your posts and advice. I dont think i will be missing out on anything at all along the way..i will be having fun and doing everything that i would like to. This is my dream.Work hard early on in life and reap the rewards later on. I want money status and power. I want to make something of myself and get myself "well off" and financially secure.
...
I will just work my !!! off, let compound interest do the work and forget about the £1,317 a month until it turns into my salary! I think i would love to go self employed if i had earnings off my savings to cover my expenses.

This is my dream....

But you won't have seen much of life, had any mind blowing experiences, seen great places and met great people or have any stories to tell apart from how you made loadsamoney - and not many people will like you for rubbing that in! Hopefully I'm wrong, but if your girlfriend isn't as thrifty as you she might be one of them...

Don't get me wrong, I think your idea of saving and looking to be financially stable is great, but like anything else, obsession isn't healthy. You'd be far better enjoying part of your income because 5 years down the road you'll be so much of a tightars (meant in a nice way ) that you'll never want to spend anything - earning and saving are both dangerously addictive; you can see it all piling up and you could well end up working yourself into the ground and having a vast sum of money to pay for a nice place in an asylum!

Good luck though.

rictus123

Cheers for that Rob, good post! Yep if i look around my mates my age i can only imagine they are all going to wish they had done what im doing when they were at this stage. I wont be missing out, il be enjoying it as i go. The thing is Rob i wouldnt know where to start with investing. As iv just posted my job is in the building trade and im sure i coud make the most of this, my skills and my contacts and make money from this. It works for my boss anyway. Hes not a millionare, he is a multi-millionare. Its worked for him so why cant it work for me?!

As the saying goes...money makes money.


Im saving for an income in the end. Its also to get in a secure financially position so i dont need to work/it wouldnt see me in a crisis should i be unfit for work or became pysically unable.
I want to do the work now so i dont have to do it later on in life. All these 60-70 hour weeks now will allow me to work a 25 hour week later on and il be reaping the rewards. I want to end up with my own little empire, running my own little ventures. I wont get very rich making someone else rich so id have to go it alone. I want to be rich and well off, noone else but me will get me there. Small sacrifices now = big rewards later.

Lokolo

LongTermLurker wrote: »

...... seen much of life, had any mind blowing experiences, ...

He's got a gf doesn't he?

KPR11

rictus123 wrote: »

KPR11 are you able to tell me more about managing my own pension then? The 25% instant boost obviously counts for alot. If im putting away £1317 a month, thats £15,800. £19,755 if i was to get that 25% boost. A fair difference. The thing is i wouldnt want to put away that sort of money and not have access to it for 40 years(at 60 years old)
Sorry but what is blt? Buy to let?

Not the easiest to explain and not something you will be able to start off straight away, hence my comment that you will need a few years behind you and capital - essentially it is a company pension scheme (occupational) set up for the benefit of the Directors and key employees (i.e. for owner-managed business - the owner) but if you are interested in finding out more, its called a Small Self Administered Schemes (SSAS) (this gives quite a good summary - http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/small-self-administered-schemes-(ssas))

I know what you mean about locking away your cash but have a look at this (http://www.h-l.co.uk/pensions/interactive-calculators/pension-calculator) and it might convince you otherwise!

Sorry I was meant to type BTL but clearly thinking about food so ended up typing BLT without realising!

Accountant_Kerry

Whilst I admire your ambition with regards to your future, you do need to make sure you experience the world.

If you really want to be rich you will need to take some big risks, if you aren't willing to do this you will be comfortable at best. Good Luck.