My quest to have £100k Net Worth by 26

rockitup

FLAPJACK wrote: »

It would be interesting to ask what people here think is the cash fiqure to have in the bank to be thought of as either wealth or an HNWI.

Don't waiver from your ideal....wish my kids had had the foresight that you have..all the best to you.

Interesting point Flapjack,

I think our ideas of what amount we would describe as wealth varies for each of us as we progress through our working life. I would count wealth as anything over the amount of savings capital I needed for getting a decent retirement income. That bit is all depending on the individuals needs and spending habits

Really thought I had made enough to retire and live comfortably back in 2007, even allowed for lower interest rates and decreasing value of capital over the years. Now if I reassessed my retirement pot I would be hoping for almost double the amount, don't know about wanting to go back to working long hours again though

What really messed it up for retirees and savers was the ultra low base rate. who could ever have expected that? Nothing we can do about it except take a higher risk to try and get some investment growth... I was hoping those days were over

newfoundglory

Your ability to get 100k is really dependent on 3 things:
1. Your income.
2. Your outgoings.
3. How you invest what you save and currently have (never underestimate compound interest - I am sceptical of equities in the current market)

I am 27 and have managed to increase my net worth by £100,000 in 6 years - but I was lucky and had £70,000 to start with. To turn £70k into £170k, all I did was save £1000 per month and used my cash ISAs to the limit every year. Saving the rest in high interest accounts or term deposits.

If I added up how much in interest I have made, i'm sure it would be an awful lot.

Not sure holding large amounts in cash is a good idea, but I don't trust the markets and it does put you in a good position to buy a property.

darkpool

I call BS on this thread

getmore4less

newfoundglory wrote: »

I am 27 and have managed to increase my net worth by £100,000 in 6 years - but I was lucky and had £70,000 to start with. To turn £70k into £170k, all I did was save £1000 per month and used my cash ISAs to the limit every year. Saving the rest in high interest accounts or term deposits..

That required a return of 4%

£1k pm is £72k of the £100k, interest is the other £28k

rictus123

That is a fantastic return and you have done well. I should still be able to save 1000pcm after I have bought my first place. Will most likely use some for lump sum to pay off mortgage and anything else that is not being kept as emergency savings to go towards a renovation, buy to let or new build, depends what I can find.

Step 1 is eliminate all debt then worry about getting deposit together. Once debt Fred I will aim to save 2000pcm. Aim is around 50k in savings before moving out. As much easier to save before taking the plunge. An extra 6 months with parents is more than a years savings once I'm out so will try to milk it while I can.

ajbell

Would be nice to see some data on what is the average net worth of people in the UK. Do you think it would be positive or negative?.

somethingcorporate

Depends what you include. If you include everyone I would expect it to be positive - if people under 50 probably negative (I am only speculating).

£1k for 6 years is incredible discipline - well done NFG!

RenovationMan

Good luck with your quest. Its good to have something to aim at even if it's just an arbitrary amount such as £100k or my own 50% equity challenge.

As I said to someone on a different board who questioned whether I'd ever know if I reached my target because pricing houses isn't an exact science, if I don't hit my 50% target I haven't actually 'lost' anything. I've still paid a huge chunk off my mortgage!

You're going to be the same, regardless of whether you hit your target or not, you've at least got a target and that's often half the battle.

newfoundglory

I think its better not to have a target - just stop 'wasting' money and save the difference.

Its amazing how much you can save really - by sourcing exactly the same stuff cheaper. Moving energy supplier, getting a better phone contract, comparing insurance policies, buying in bulk (costco vs supermarket) - to putting EVERYTHING you buy on a cash back credit card.

Not rocket science really - and you shouldn't have to change your lifestyle.

MyLastFiver

Rictus, I remember your thread from 2010 in which you planned to start saving £1000 per month:

You wrote:

So at 25 my goal is to have £66k personal savings, a mortgage with gf with about £50k equity in our house, and a steady income.

So here you are 15 months later, and instead of being on your way to being a millionaire, you have acquired £12000 of debt

Having ambitious targets is good fun, but I think you need to focus more on the month-to-month acquisition of wealth. In other words, actually putting some money away, and reining in your spending. Otherwise, your dreams will stay just dreams