The 'Make £120k in 10 Years' thread!

jamesd

Investing early is useful, to get the higher growth rate from investments compared to pensions or mortgage capital payoff. But it doesn't have to be done in a pension. Given your property purchase plans and income expectations, S&S or even savings ISA looks best until you have the property, though do get any employer matching of pension contributions.

somethingcorporate

Whilst it may be the number £100k assuming prices rise by inflation it would only have the value of buying what £80k could buy today. If you are looking to holding £100k as a status / target then fine it makes sense but if you actually want your money working for you holding it in accounts that don't keep up with inflation is fools logic.

Inflation risk is guaranteed in savings accounts at the moment, investment and associated risks can be mitigated by sensible and diversified investing.

I think holding cash should be a part of mitigating the risk of investment but should only be a small element of your wealth "holding". At the end of the day do you want the magic 6 figures in a single account or do you want a NW of £100k? these are obviously 2 very different things.

rictus123

I see what you are saying and it will also be serving me as an emergency fund so once i have bought a place and established 6 months living expenses i will review what to do with further savings beyond that amount.

Aim for me is £100k net worth in 5 and a half years, £100k liquid in 9 and a half years. I dont really think i need to look much further than this right away,however i can see me doing this challenge in a shorter timescale than planned. Who knows what might happen though.

somethingcorporate

You should look into investing via S&S ISAs, even if it's just a small monthly payment (£100-£200 a month). It will soon add up and will mean you take a more active role in your savings and perhaps get you into investing - which is actually quite fun!

Stochasticity

Amounts you need to save per month to hit £120,000 after 10 years, given the following average (net and compounded) interest rates/rates of return:

0% - £1000
1% - £952
2% - £905
3% - £859
4% - £815
5% - £773
6% - £733
7% - £694
8% - £656
9% - £620
10% - £586

Don't be disheartened then if you can't save the full £1,000 per month!

rictus123

10% is not that easy to achieve though? Who on this board gets 10% net year after year 10 years in a row?

Looks easy on paper..

ferox666

I do not mean to be rude rictus, and i think the fact you are saving is VERY GOOD, - but every thread seems to be hijacked by your ever-changing plans of having X amount saved by X (usually high amounts). I first saw these constantly changing plans 2-3 years ago and despite the expected riches in the near future I see all this time later you are in debt still with no savings...if you can reach your target I am pleased for you but if these are unrealistic plans why waste people's time...

rictus123

I will reach my targets i have set, i am ambitious yet realistic. Took on £13,500 of business debt and now i am able to have a net income of over £3,000 a month....so it was a small risk taking it on but its paying for itself and more. Why cant i save this amount, it doesnt really matter what your age is? There is 18 year olds out there who have made 6 figure sums already, never mind me aiming to do it 10 years like everyone else on this thread,what is so unbelieveable about it? Things change, plans have to change for better or worse and i didnt know 3 years ago what would happen as i had no clue about budgeting/personal finances. I now like to think iv got a grasp of this basics and im trying my best to put it all into action. Like 3 years ago, i also do not know what will happen in 3 years. Failing to plan is planning to fail though so iv got the plan sorted? Just need action now.

ferox666

fair enough! well done on high income.

lvm

Well done for starting the thread MoneySaverLog. I'm definitely signing up!

I have been looking for a second job to supplement my income as the £1000 a month leaves me £300 a month for food, petrol, presents, clothes etc (all non-direct debit stuff) and I manages to spend 3 times that budget this month. Partly to do with Christmas and car/bike stuff though so won't be a regular occurance!

Anyway, I will be hoping for the £120k in 10 yrs (although must admit I liked the sound of £100k better - has more of a ring to it!)...and that will hopefully be in property.

Good luck to everyone! x