The 'Make £120k in 10 Years' thread!

MoneySaverLog

Rules are simple.

Make £120,000 within 10 years, either through savings or investments. Average monthly target is £1,000 per month.

Any existing savings/investments can be counted towards this challenge. If you so wish, you could aim to reduce your target date to reflect any savings you already have by 1 month for every £1,000 saved.

Set your own overall target and divide by 120 to get your own monthly savings target, if you feel the full £120,000 is too much.

Just keep track of your targets, either in a post below or by updating your signature.

rictus123

I am in. Edited to change my target to £100k liquid in bank accounts by June 2021...so by my 30th birthday. I have started up another thread on these boards to get my net worth to £100k by 26 years old, that is 5 and a half years away.

This thread will work well, side by side with my quest to have a £100k net worth. I now have a 5 year and 10 year plan. Now its just about putting the plan into action.

MoneySaverLog

My target is £100,000

Starting with £12,000, and earning a average of 3% Net interest, I calculate that by saving £1,000 a month I should hit my target by July 2018, it may be sooner depending on how well my sharesave pans out over the next 5 years.

Using the following calculator: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#savingscalc

jamesd

I'm not joining this because I've already done it. Took me a bit over four years from zero to £120,000. In the first five years starting below zero the total accumulation of money was 180% of my net income plus gross pension contributions, helped by the wonderful 2009-10 investment year/tax year in which my net worth doubled, courtesy of some good enough investment timing decisions. I've been saving and investing more than 60% of my net income plus gross pension contributions.

Anyone using investments should be sure to remember that down markets are times of discounted prices when you should be adding money as fast as you can save it. Now is one of those times, though don't be surprised if prices get lower. If you have a lot of capital already you need to be a bit more concerned about timing than if just starting. When the press is doom and gloom, don't think "bad", think "sale".

One of my best moves was around April 2008 when I set up pension contributions of the maximum permitted amount of my salary, taking my income down to minimum wage before workplace benefits were added, for the next year. That decision was just after some market drops, knowing that there could be more. The result was buying at cheap prices through the worst of the market downturn in the last quarter of 2008 and first quarter of 2009.

Go for it and if your objective like mine is financial independence and an ability to retire early, best of fortune to you in your own journey!

rictus123

James d....that is a terrific motivation story for the likes of me...please read my thread on this board,getting net worth to £100k in 5 and a half years by age of 26...starting at my current minus £10,000!! Should be breaking even by June and £15,000 up by the end of 2012. I am looking into pension today to see how much i should put away. I am hoping liquid cash be over £30k by 26 then for the year after that i will use the savings to live off for a year and invest as much of salary as possible for the year to give it a good boost..may do it 2 years in a row if savings are high enough to allow. Depends on situation at time.

Im sure you will be along to tell me the way you think is best so i can learn from someone who has been in my position before it seems.

jamesd

Given your age I think that pension contributions are less appropriate for you than for me. I'm close enough to 55 that I can include in my planning an ability to draw down non-pension capital until I can take pension income - for many years, but close enough to do. But you're at leas 25 years away from being able to take pension income. For you, S&S ISA would be a better first choice until you reach the ISA limit, but do get any employer pension money as a priority before that.

rictus123

Ok well i will need to look into exactly what S&S ISA....open to risk but dont want to log on one day to find its all gone? Thought the earlier the better for pension? I do however plan on being able to semi retire before the age of 55 though.

ferox666

rictus please stop mentioning your age in every single post....been seeing it for years, we get it...

rictus123

ferox666 wrote: »

rictus please stop mentioning your age in every single post....been seeing it for years, we get it...

Where on this thread have i mentioned how old i am?

somethingcorporate

Ignore him. I do think focusing on hoarding cash is a bit too simplistic. Cash loses value very quickly, £100k today will be worth £80k (in spending power) by the time you have finished saving it!

Given your age investing in high risk (but diversified) is the way to make money over the long term. Holding cash even at the best interest rates is losing 2-3% of "real" value every year.

rictus123

While i agree with your post,it will still be £100k, not £80k. Keeping it in cash is the best way for easy acess though and i would most likely look to use the cash to renovate/as a large deposit on a buy to let/some sort of investment. It would only be cash until that stage and i found out what i wanted to invest in...maybe a forever home. Investing in high risk might lose money so will only be worth say £50k not the £80k it would in savings accounts. Bonds do tend to pay near the inflation fee if fixed over 3 years etc.