A student with £25k...

eviekins

Congratulations on your success BoosSmile! 57k is amazing! Make sure you get that out of your current account and somewhere earning you interest whilst you decide what you want to do with it long term
Can I ask though, 32k on luxuries seems like a lot! What sort of luxuries do you have in mind and are they really necessary?

guitarman001

I'm interested in hearing in what the business venture was, and why this person is going back to study engineering!

BooSmile

atush wrote: »

What rate are your student loans? paying otnerest hen you don't need to so you have debt for longer isn't always a good idea. But grants and bursaries are different so fine on that.

And check into your Masters plans. It was my understanding that you will be on the new higher fees for your Masters as it counts a a whoe new degree.

You worked hard I assume for that money so no problem in buying a car etc. But I would not spend today what you will need tomorrow and then finding that via debt. So I see no reason you 'need' to spend more than 30K of it?

Good choice on the engineering. I have 3 boys in or soon to be in Uni and I was hoping one would pick that but no luck. But I will have a lawyer for my trouble ;-)

No idea what rate are the student loans to be honest. I just know what I'll have to start paying them back once I'm earning £15k or more.

Yes, a Masters degree will be pretty expensive, and it also means another year in education, so I'm in 2 minds about it. I'll just have to wait and see how it goes in a few years time.

I definitely worked hard to get to where I am now, but it definitely feels as if I'm back to square one, with no business/job, not enough money for a house investment and such. I've sacrificed a lot of time, especially my social life for the past 2 years... _pale_

Engineering has been ok, although I constantly wish I went for something such as Maths...

gadgetmind wrote: »

Try not to rely on that any longer than is necessary. It's easy to turn into a zoo lion, dependent on meat being thrown at them and lacking the urge to hunt.

To be honest, I stopped relying on my parents' income 2 years ago/since I started my own business. I earned more than enough to keep myself alive, but now that I've sold the business on, I feel as if I'm back at square one again, having to rely on my parents' income.. Even though I have a bit of money in the bank.

gadgetmind wrote: »

Engineering covers many camps. We're desperate for *good* computer science and electronic engineering grads, but mech eng (and others) might well be harder.

I'm studying Aeronautical Engineering... So not too sure on the job prospects of that in the future...

gadgetmind wrote: »

Regards your planned spending, either don't do it, or do it very wisely. I blew a lot of money (earned myself, not gifted!) at a very young age and wish I hadn't.

It's just a temptation for me I guess. It's a nice feeling to be able to drive a Porsche at the age of 19 years old. But yes, I do think it's a big waste of money, it's the reason why I'm on here asking for advice.

gadgetmind wrote: »

As for the degree, that's your choice. However, if you have the brains and drive to run your own business, do you really need to study full time rather than just getting stuck into working life?

I did complete my degree even though I started a business in my final year, but I do question my earlier priorities. Degrees were worth more back in the early 80s, but even so my certificate went into a drawer and never came out again.

Only you can decide.

The reason behind me wanting to continue on my degree is actually because I want to have a business in that sector once I get out of University, although it's easier said than done.

And to be honest, would it not be a big waste of money if I stopped university now? I've already wasted quite a bit of money on 1 years worth of tution and rent fees...

guitarman001 wrote: »

What kind of engineering are you doing? It's fun but you;ll never be rich from it. Starting salaries are typically higher than most jobs but as you get older those other jobs will likely take over in salary terms. I do IC design (electronics). Pay is poor in the UK compared to Europe and the US. If you're doing something more mechanical/civil/electrical based then get off to Oz.

Aeronautical Engineering. But yes, I agree.. You can never get rich from a degree in Engineering. Which is why I kind of regret going down the engineering route.

eviekins wrote: »

Congratulations on your success BoosSmile! 57k is amazing! Make sure you get that out of your current account and somewhere earning you interest whilst you decide what you want to do with it long term
Can I ask though, 32k on luxuries seems like a lot! What sort of luxuries do you have in mind and are they really necessary?

Thank you for that.
I highly doubt any luxuries are "necessary".. And certainly the ones I have in mind are not necessary at all.
I was actually looking at treating myself to a Porsche (largest part of the spending due to insurance), getting my mum a 'new' car, as well as treating my family to a holiday etc.

guitarman001 wrote: »

I'm interested in hearing in what the business venture was, and why this person is going back to study engineering!

What the business venture was won't be something I'd be disclosing, but I can tell you that it involved being the first company to provide the UK market with products which filled a very small niche and had a very specific target market. Before my previous business, you could only purchase those products abroad. No idea if this helps you answer your queries in any way, but it's the best I could answer it.

And as to why I want to go back to study engineering; My main dream since I was young was to become an Aeronautical engineer, especially after being close up next to aircrafts of all sorts at a young age, and if all goes well, I'll be planning to open up a business in that sector.

Lokolo

The interest rate is currently 1.5% and will only rise if the Base Rate rises.

Masomnia

Lokolo wrote: »

The interest rate is currently 1.5% and will only rise if the Base Rate rises.

Indeed, it's still worth taking the loans.

Buying a porsche is just silly, and I think you know that. Would I spend a bit? Yep, but on things that will make you a more rounded person like travel, building up language skills; invest in yourself. This will be impressive to employers in itself.

I'd get a car, no doubt, but something decent, won't cost to maintain as that's false economy, that'll get you from A to B and won't lose 25% of its value the moment you drive it off the forecourt. No one got rich by buying assets that depreciate.

innovate

BooSmile wrote: »

My living costs are nowhere near £7-10k, more closer to £3.5k a year.

All of £292 a month?

BooSmile wrote: »

It's a nice feeling to be able to drive a Porsche at the age of 19 years old.

Are you running the Porsche on water?

I am sorry, but something seriously doesn't quite add up there.

BooSmile

innovate wrote: »

All of £292 a month?

Please remember that I'm only in that accomodation for 43 weeks in a year. And the current accomodation is on campus, and it works out around £81 a week which includes bills.

innovate wrote: »

Are you running the Porsche on water?

I am sorry, but something seriously doesn't quite add up there.

Not quite sure what this means.. But bare in mind, I'm not looking at brand new Porsches. I'm talking of used 2005/6 Porsches, and it will be the lowest in the range, so it's only a Boxster 2.7. Fuel shouldn't be a problem, as it's rare for me to even need to drive. That's why I said it will be a luxury not a neccessity.

BooSmile

I think this thread is slowly moving away from the reason to why the thread has been started. As I said, I don't mind not spending on luxuries, I just need a good way of making use of that money. Even if I opened an ISA account, I could only put £5640 into it.. What do I do with the rest? Just leave it in a high interest account?

innovate

BooSmile wrote: »

Please remember that I'm only in that accomodation for 43 weeks in a year. And the current accomodation is on campus, and it works out around £81 a week which includes bills.

Not quite sure what this means.. But bare in mind, I'm not looking at brand new Porsches. I'm talking of used 2005/6 Porsches, and it will be the lowest in the range, so it's only a Boxster 2.7. Fuel shouldn't be a problem, as it's rare for me to even need to drive. That's why I said it will be a luxury not a neccessity.

Surely you need more than the very basics on campus? Do you have a life? Do you go to parties? Do you have weekends away from the campus? Do you buy clothes? Do you go on holidays? Do you buy birthday presents? Do you buys books for your courses? Do you go to cinemas / theaters / clubs? Do you have a hobby? How do you sustain yourself for the other 9 weeks in the year? Etc etc etc etc

Your Porsche idea sounds more and more bizarre - - if you do not need to drive it, why have it at all? Where would you keep the car during the 43 weeks you are on campus, btw? More importantly, how does keeping a Porsche affect your monthly outgoings? Petrol, insurance, garaging etc.

BooSmile wrote: »

I think this thread is slowly moving away from the reason to why the thread has been started. As I said, I don't mind not spending on luxuries, I just need a good way of making use of that money. Even if I opened an ISA account, I could only put £5640 into it.. What do I do with the rest? Just leave it in a high interest account?

If you aren't a troll, you should be giving up that "luxuries" talk. £57K might seem a lot, and probably far too much for you to cope with right now, given your ideas about "luxuries". Reality is, it isn't actually a lot at all - - and you are at risk of just p****** it away in just about no time, what with stupid ideas of buying some potentially penis-enhancing car that you say you don't even have any need to drive much.

My recommendations would be: make a realistic budget plan for your regular outgoings, read a few books such as Tim Hales "Smarter Investor", or the "Monkey with a pin" ebook, then get yourself an ISA (S&S one, not just cash), start a SIPP, and put the rest of your money into good interest paying bonds for now. Claim back any tax with an R85 form, until you have to pay tax again. You'd want to be able to maximise your ISA and SIPP allowances each year from now on. Your max allowances for ISAs and SIPPs are in the region of £14K per annum, so even if you could put the full £57K into savings/investments, you have no more than about 4 years worth of investments right now.

You have made a great start financially, but you need many many more years of at least the same sort of investments in order to sustain yourself later on in life. You will probably want to buy a house some day, raise a family, generally have a good working life, and retire in financial comfort. You need hundreds of thousands to finance that.

BooSmile

innovate wrote: »

Surely you need more than the very basics on campus? Do you have a life? Do you go to parties? Do you have weekends away from the campus? Do you buy clothes? Do you go on holidays? Do you buy birthday presents? Do you buys books for your courses? Do you go to cinemas / theaters / clubs? Do you have a hobby? How do you sustain yourself for the other 9 weeks in the year? Etc etc etc etc

Your Porsche idea sounds more and more bizarre - - if you do not need to drive it, why have it at all? Where would you keep the car during the 43 weeks you are on campus, btw? More importantly, how does keeping a Porsche affect your monthly outgoings? Petrol, insurance, garaging etc.

As said earlier on in this thread, during the running of my business, I had a very bad social life - I just didn't have the time. And therefore, I didn't and still don't go to parties, clubs etc. Yes, it's bad but not only were clubs and parties not my type of 'thing', it was simply a sacrifice I had to make if I wanted to earn decent money for myself compared to other students which struggled with their finances.

Yes, I do purchase books for my course, and it can go into £100+ for 1 sememsters worth of books, but the grants I get cover this very easily.

I used to go Cinemas, shopping etc a lot.. (wasted a lot of money before) but that has since changed a lot due to a personal reason. I don't go cinemas anymore, but I do go shopping for clothes - only when I need to though. For the other 9 weeks, I'm back at my parents home, but when I'm back there, I do pay for the weekly groceries from time to time.

The Porsche is I guess just a way of treating myself for the hardwork i put in previously. I already have a car (nothing expensive), and yes, it doesn't get used much, unless I'm travelling to the supermarket such as Asda or when I go back to my home town. The car is also kept on campus as there is a parking area outside the university residential area (£125 a year for parking).

Insurance is obviously going to be a problem, as at the end of the day it is a Porsche, and after going on a few comparison websites, I'll be looking at around £1900 a year (current insurance is £1300). Weekly outgoings will increase due to fuel too, but not by too much. But you have deterred me away from getting a Porsche, as it's just money which I will be losing for no reason.

innovate wrote: »

If you aren't a troll, you should be giving up that "luxuries" talk. £57K might seem a lot, and probably far too much for you to cope with right now, given your ideas about "luxuries". Reality is, it isn't actually a lot at all - - and you are at risk of just p****** it away in just about no time, what with stupid ideas of buying some potentially penis-enhancing car that you say you don't even have any need to drive much.

My recommendations would be: make a realistic budget plan for your regular outgoings, read a few books such as Tim Hales "Smarter Investor", or the "Monkey with a pin" ebook, then get yourself an ISA (S&S one, not just cash), start a SIPP, and put the rest of your money into good interest paying bonds for now. Claim back any tax with an R85 form, until you have to pay tax again. You'd want to be able to maximise your ISA and SIPP allowances each year from now on. Your max allowances for ISAs and SIPPs are in the region of £14K per annum, so even if you could put the full £57K into savings/investments, you have no more than about 4 years worth of investments right now.

You have made a great start financially, but you need many many more years of at least the same sort of investments in order to sustain yourself later on in life. You will probably want to buy a house some day, raise a family, generally have a good working life, and retire in financial comfort. You need hundreds of thousands to finance that.

I knew I'd get people thinking I am a troll, it's the reason why I want to keep the thread on topic, but nearly everyone who replied is deterring it away from the whole purpose of the thread with the asking of what business I had, what I am studying, why I gave up the business, etc. I understand this thread raises a lot of questions, but I only wanted advice on how to save money wisely...

I totally understand that 57k isn't a lot, and after some advice from a relative, I need to make the money work for me and not just waste it on unneccessary stuff. I have been given a book called 'Rich dad poor dad' by a relative and it supposedly should help give me an insight into managing all this financial stuff.

Thank you for the advice, and I will definitely look into opening an ISA, SIPP and a 'high interest' bond. But the choosing of banks etc is easier said than done as I have discovered....