My quest to have £100k Net Worth by 26

JonnieShah

Wow. That is a very ambitious goal, in my eyes. Best of luck acheiving it. I know reading this forum will help inspire and motivate you, so keep at it.

somethingcorporate

rictus123 wrote: »

I did mean ISAs though as ISAs are liquid? Wouldnt know where to start with buying a stocks and shares ISA. How high could inflation go?

Very high! could reach double figures. We'd likely see some wage inflation to go with the cost inflation but that can actually contribute to the problem!

Printing money does not help either - not sure if you have ever studied history but printing money pretty much caused the hyperinflation that was seen in German in the 1930s.

We have been investing in S&S ISAs for a year now, no real skill or experience - just a bit of research into the funds and their managers. Over £8k invested we are about breaking even. There is loads of information on the HL website, so have a look in your spare time.

I would say cash ISAs are liquid enough, as a last resort they will bail you out but obviously once they have been withdrawn from the ISA wrapper you lose that lovely tax-free status.

I do think your goal is very ambitious. My wife and I have considerably higher (joint) income and have done for a few years now (we started at 23 when we left uni) and are only now approaching 100k networth (including pensions and house equity) at 26/27 years old.

Good luck.

rictus123

Yep quite ambitious but planning is half the battle. Never realised it could hit so high,thought it was always around the 4-6% area. I havnt really done much research into that sort of area before and im not clued up what so ever, will look into it more now. Might change my view on saving.

Getting mortgage free asap while keeping liquid low would still do wonders for my net worth. The saving in ISAs etc is some way off just now though, need rid of business loans then save a little emergency pot in my current account that will be my £0 which will then let me save up for the cost of buying and furnishing my first house. Will look to pay off mortgage asap then i will be looking to savings.

Sort of almost seems pointless holding savings and better off investing in assets that could provide income - the most popular one i see on here being buy to let.

Well i dont want to sound cheeky or thinking im better than you but i doubt you planned to have that status by that age. So i believe that is one of the main differences. Who knows what will happen though, i will just try and make the most of every situation i find myself in. Thanks very much for your post, that is the exact guideance i am looking for.

Kwaker_Knacker

Good luck to you, I'll watch this with interest.

K_K

JonnieShah

rictus123 wrote: »

... i doubt you planned to have that status by that age. So i believe that is one of the main differences. ...

I didn't plan to be so reckless with my money. Fortunately, I wasn't reckless in the sense that I would get myself into debt, just bad enough to be landed with a resultant £0 in savings. For me, this journey is about changing my daily routines and thoughts in order to save up for the things I want.

I commend your positive attitutde. And you are quiet right, planning is important. I'm going to tackle this storm in my teacup before I move onto a status/goal such as you have chosen.



Happy Money Saving.

somethingcorporate

rictus123 wrote: »

Yep quite ambitious but planning is half the battle. Never realised it could hit so high,thought it was always around the 4-6% area. I havnt really done much research into that sort of area before and im not clued up what so ever, will look into it more now. Might change my view on saving.

Getting mortgage free asap while keeping liquid low would still do wonders for my net worth. The saving in ISAs etc is some way off just now though, need rid of business loans then save a little emergency pot in my current account that will be my £0 which will then let me save up for the cost of buying and furnishing my first house. Will look to pay off mortgage asap then i will be looking to savings.

Sort of almost seems pointless holding savings and better off investing in assets that could provide income - the most popular one i see on here being buy to let.

Well i dont want to sound cheeky or thinking im better than you but i doubt you planned to have that status by that age. So i believe that is one of the main differences. Who knows what will happen though, i will just try and make the most of every situation i find myself in. Thanks very much for your post, that is the exact guideance i am looking for.

Not cheeky in the slightest mate, I agree, it has only been the last few years that we have attempted to be more productive and plan with our money. We have spent £30k+ on holidays in that time. We were young making really good money and we have lived it up!

Building up the £100k has really been incidental and had we planned and been strict (holidays really are our weakness) we could have got there a lot quicker.

B2L can be a great idea, especially if you have got the skill to do a lot of the work yourself (which by the sounds of things you do). Although it really is for the long term and the property you choose and its location is absolutely key. One thing that we have really learnt that is massively helpful is to put money aside before you notice it; we pay lots into pensions / ISAs/ Sharesaves /overpay mortgage etc before it registers for too long in our bank account, otherwise we have the tendency to spend it! It is a simple but very powerful idea. Just by dripping £85 into shares and £100 into a S&S ISA at the start of the month we have built up a couple of grand emergency fund without even noticing we are missing anything.

Diversification is also an important consideration, if you plough all your money into a single asset class (such as gold, B2L etc) and it takes a battering on value the natural reaction is to panic and withdraw the lot, crystalising any loss. Spreading your investment across multiple classes really does minimise the risk of a large loss and any knee-jerk reaction to it.

Good luck, I have said it before on your threads but I really admire your determination and planning. Even if you don't 100% reach your target I expect you will still do extremely well and be head and shoulders above your peers.

rockitup

rictus123 wrote: »

I am looking into pensions but with no HR department at my work for as far as pensions go, who do i turn to? How do i find out? I get a yearly statement through from construction pension company, will rake these out right now and see what the score is. Will try and see them about contributing more. Will it show up on my payslip if i am putting money away into these?

A 35 year saving plan for pension + £100k in 10 years plus im sure i will be on the mortgage free asap board aswel as soon as i buy, along with a buy to let im sure i will be set for a lovely retirement even by the time i am 30....how that could all change though. Plus will have a wedding and maybe kid inbetween now and then aswel.

I was thinking to keep the liquid cash at a certain level, say £50k or so and anymore above that into pensions/buy to let/overpaying mortgage. After all it just loses money.

Good you started early on your plans Rictus, I was making the same plans on a few pieces of scrap paper at 41 (almost went bankrupt at 39 with £37k of credit card and bike loan debts) then retired at 49 just through leveraged (high risk) investing.

You are right to crack on now and get these plans to work, because the huge growth available in investments, BTL etc is not around for a while (in my opinion)

Wedding and kid or two, oh boy that can re-arrange your targets big time...

You have enough working years left to spread your money about, regular share or fund investments, pension plan (would be better if employer contributed), cash ISA and maybe a BTL in a few years from now.

May have to kiss goodbye to nice holidays. expensive meals, gadgets and cars for some years while you build up capital but hard slog is worth it in the end.

Best of luck with your meeting your targets :beer:

atush

Good luck with your plan.

Your hardest task will be getting rid of your debt. And if you can do that before the end of the year you have a chance.

Go to the Debt free board and start a thread by posting your SOA and get help trimming back spending and increasing income.

rictus123

Thanks for all the replies guys, exactly what i was looking for when i started the thread. Well got paid yesterday and im not £1566.65 better off for the fortnights work. Paid my holiday to Florida and my mechanic for sorting my gearbox. So now have about half the money i need to clear the smallest loan. £2,570ish to clear it(including interest to be added end of this month) Should be clearing that end of Febuary.

I am going as fast as i can to pay off debts by June/July. It is a fair task but many on here have managed to pay off simular in a short space of time so dont see why i shouldnt manage.

I agree getting married and having kids will provide a hiccup to this challenge...deal with it when it comes, anything could throw things off just the same as some things mught happen to work in my favour and i achieve this earlier. Even falling short as mentioned above, it will still be a great achievement getting close to my target by the end of that timescale.


This year is my holiday to America and will most likely be my last for at least 4 or 5 years as i will have a mortgage to pay down instead of having a couple of weeks sunshine. Worth it imo and i will more than make up for it later on in life once i have reached a much better financal state that i find myself in right now. Putting away the £85 to shares and £100 to s&s ISA will build up in no time as a little emergency pot. I will look to do this starting with a new ISA in April so make sure you pop back then to give me a hand looking for a decent one.

Rockitup sounds like you had a fantastic 8 years or so playing the market. I think i could handle almost half my investments being high risk since im in it for the long term.

Keep the advice coming guys, im taking it all on board and having a "research" day today.

ajbell

Interesting thread, How are we working out net worth?.House +car +cash/investments minus debts/mortgage?
I can't really value my pension as i have 2 final salary pensions, lucky i guess but difficult to put a value on. Just totted
mine up and it comes to £260000 excluding pension, i'm 47 though. I don't feel particularly well off though.
Is there any information on whether 100k net worth at 30 is above/below average?.