My quest to have £100k Net Worth by 26

Kwaker_Knacker

In my experience, the only time I ever had money in the bank was when I lived with my folks. No bills, just a few quid board every week. Washing, ironing, meals all done into the bargain :rotfl:

Don't be so keen to get into the mortgage game mate

K_K

rictus123

It will be a year + before i am...so even if i was in a hurry, im forced to wait due to the state of my finances right now. Once i pay this off i truely hope i never have any debts again bar the mortgage. Feel so crap thinking about how much i am owe the bank. Not going to rest until its all paid.

Decadent_Debtor

Loving your thread Rictus. Go for it mate! From my experience, clear the debts while you're living on the cheap with your folks, save up your house deposite and then - here's the real trick - save a good £5-10k on top to furnish the place, pay legal fees etc.

That has been my problem. Stretched myself to buy the house then had to take on debt to kit it out.

Anyway, subscribed to your thread and looking forward to helping each other out.

All the best.

rictus123

We can follow each others threads then Decadent!! Yep plan is pay debt off asap while still at home. Expenses are under £450 a month for everything except debt. Pay £710 a month minimum payments towards debts. Then save deposit+fees+stamp duty+furnishing+first few months getting set up/expenses. See how much everything costs and how much i can continue to save after iv taken the plunge. Hopefully debt free by this summer and move out by next but it will take aslong as it takes, dont want to fall short!

MoneySaverLog

Decadent_Debtor wrote: »

here's the real trick - save a good £5-10k on top to furnish the place, pay legal fees etc.

That's very good advice, I'd also add on a 3-6 month emergency fund too.

somethingcorporate

Going back to a previous point, as to whether we count pensions or not. I do in my calculation because it is diverting my current income to build up an asset that will provide an income in future. I agree that valuing FS pensions is a lot trickier but I have DC and can put a £ value on it very easily (I can see it on the Standard Life website).

I agree that unless your car is a real investment (classic or used to generate income) then it is probably not one to be added to the list of assets since it will always be required and have additional upkeep so no chance to sell or get income from it without replacing it.

I would say that £100k nw by 30 is well above average - I expect most people to still have a very low or negative networth at this point in time (renting / student loans to pay off). I have been very lucky getting a good job on graduation and marrying a woman with a very high paying career.

rictus123

By 30 i agree is now well above average. We are a debt generation. Its almost like banks are handing us the money to go out and splash on anything then have to pay 25% of our income to them every single month. Aiming for 26, others say by 30 is good going so it does seem a little less daunting when i actually sit down and think about what im trying to do. Need to get rid of all the debt before i even worry about anything else though. So many older people have made a fortune and are doing really well for themselves i wonder if there will be as many self made millonares out of my generation as there was others.

Im sure millionare status would be the ultimate "realistic" goal to me, but im sure alot of the posters on this thread would say even £500k would be very hard to achieve. I need to worry about the immediate future right now though, keep earnings as high as i can and get rid of all this dreadful debt.

rockitup

rictus123 wrote: »

By 30 i agree is now well above average. We are a debt generation. Its almost like banks are handing us the money to go out and splash on anything then have to pay 25% of our income to them every single month. Aiming for 26, others say by 30 is good going so it does seem a little less daunting when i actually sit down and think about what im trying to do. Need to get rid of all the debt before i even worry about anything else though. So many older people have made a fortune and are doing really well for themselves i wonder if there will be as many self made millonares out of my generation as there was others.

Im sure millionare status would be the ultimate "realistic" goal to me, but im sure alot of the posters on this thread would say even £500k would be very hard to achieve. I need to worry about the immediate future right now though, keep earnings as high as i can and get rid of all this dreadful debt.

Rictus, you have got the right thoughts going through your mind like trying to keep earning at high level and pay down debts ASAP.

But at the same time you are going down the "I want it now" route looking forward to a U.S. holiday and an X5 car. Been there, done that but wished I hadn't because once I took my first Transatlantic trip and bought a decent motor... I wanted more. That is what got me in debt trouble again in my 30's.

Just try and put those couple of ideas off for a few years, you will get your own house quicker and even though house prices may well wobble a bit, it is better debt than having an expensive car losing value as soon as you leave the car lot. Stick with driving a van for your work (tax deductible if self employed) and it is there for your weekend too. If you fancy a nice weekend away, you can always rent a Beemer for the odd weekend and not have to worry about spending 4k a year on insurance.

It is going to be harder to get to a big target nowadays as HPI looks likely to be flat for next few years and will probably remain at level of wage inflation after that for some time (only my guess but I reckon government want to avoid future house price booms like we had from 2000)

I wish I had not been such a car & bike enthusiast, it cost me dear and left me brassic for years. And we didn't have gadgets then

Play your cards carefully, knuckle down and we should be able to see you at the Mortgage Free status within 10 years of buying your house

Derivative

If you want to be a millionaire, forget X5's and holidays to the US.
Everything you buy should be geared towards improving net worth long term.

Food? Well, that keeps you alive, so it's a given.
Rent? Having shelter does make it a lot easier to hold down employment or keep other steady sources of income.

Buying a shiny car takes you further from your goals.

Keep in mind though, at 3% inflation, £225,000 2010 pounds would buy the same as ~£1M 2060 pounds. So it might not be too difficult by retirement.

bigadaj

Whilst I admire the sentiment the whole thread comes across as a little cheer leading American, whoop whoop. Life is more than money, and as with many things, having no money or debts may make your life miserable, then having large quantities of money is no guarantee of unlimited happiness. Work hard, be responsible and prioritise, in my case this was enjoying my twenties, including working abroad and travelling, and then concentrating on saving and the future in my thirties. To me the order was clearing debt, cash reserve, house and paying down mortgage, s and s isas and more recently pension as the tax relief becomes worthwhile. It's always a worry to me talking about beemers etc, as many people with such cars seem to me to actually own the front bumper, the rest is on finance and most of the rest of their assets are as highly geared.