Calling those with a "high" level of savings/investments! (£50,000+)

YoungBusinessman

Osian, you have done very well if your post is completely true. Very well done! At the start of my 20s so will be in your position sooner rather than later. I guess that makes you one of my role models.....for now

Austin_Allegro

I've been able to semi-retire (move to part time work from home) at 38 by downsizing and moving abroad. I've also been lucky enough to always have good health, inherit some money and marry a girl who owned her own flat! That was the luck part.

I do however rely on a very basic principle which is 'it's not what you earn, it's what you spend'. However much money you have coming in, if you don't live within your means you will always have problems. This is why the super rich can go under just as much as the poor.

I also think 'a penny saved is a penny earned'. If you work out a way to save money, then you have 'paid' yourself that amount for the work involved. This is a good way of working out whether a money-saving activity is worth it. Hint: don't bother darning socks!

It took me until I was about 27 to work these things out, since then I have lived frugally and managed to save about 50k.

jimjames

osian wrote: »

Ten years later we're in a fairly good position with decent savings and our home paid off but I would never call us rich. Our home is ordinary, we drive older cars, I have a £7.50 payg phone, we don't have sky, wear supermarket clothes the majority of the time. We're willing though to spend money on good times - holidays, days out, meals/ going out with friends as I think those are the most important things.

We are the same, it is good to be in the position where you can make these choices having made the savings over time rather than the instant gratification of spending all your money on gadgets now. We are able to have some pretty expensive holidays by choice as a result of running old cars and not spending money in other areas - I do like the ability to choose that it brings.

Wobblydeb

YoungBusinessman wrote: »

Just curious as to all the different situations surrounding how you got there? How long it took you to get a decent amount saved/at what age?

I got lucky.

I went from negative net worth aged 28 to +£50k (net worth, not savings) in the space of 2 years due to 2 things.

• I bought a house in a rising market (2002 to be precise)
• I got made redundant from a job with a decent payout and walked straight into another one.

I managed to gradually fritter away the redundancy money on the house, holidays, nice cars etc. until I had a wake up call when all I had left was about £5k. Luckily I still had a good job, equity in my property despite the crash, and a light-bulb moment about saving.

Nowadays I am saving £50k about every 3 years ...... which is much more satisfying than getting lucky. To do that, I am driving an older car and wearing cheaper clothes, and am happy with that choice.

I will repeat the theme that has been covered by many others in this thread. If you keep spending to either feel or appear wealthy (the fancy cars, the nice stuff for the house, the debt so that you can have stuff now instead of saving up) then you will never be wealthy.

You are going to have to decide your priorities in life - nice stuff / kids or pets / expensive holidays / amazing food / retiring early. Everything is a decision and everything costs money. Only you can decide what is most important to you.

YoungBusinessman

£50k every three years is great going. Our mortgage has been accepted on the basis i pay down some debt first. Debts will be down to £17,000(after being at a £36k high in April with bank account as low as 3 figures:eek:) so paying £506 a month as opposed to the £806 i pay currently. So my new loan payments + my half mortgage = amount roughly used to spend on loans. Just got to come up with my half the council tax,food,electric etc etc.

I also have plans to "branch out" a bit, a business oportunity in 2013 which should supplement my income a few £££ a month extra, i estimate £9,000 to get this kicked off - i will save this as quick as i can starting from 21st Dec, when i get my last pay this year. Im going to try get it all raised for April. By then my debts, just paying min, will be down to £15,000.

So 2013 is looking very promising indeed. If i get that £9,000 soon enough im sure i can clear the remainder over the rest of the year.

Bring it on i say, time to live well withn my means and make every penny a prisioner :money:

cos_2

Aye, it's "every penny a prisoner" to avoid "every pensioner penniless".

YoungBusinessman

Doubt I will ever even be a pensioner unless I get my act in gear! I'v at least 49 years till state retirement as I bet it will be 70 before long! If it even exists that long

JoeSheffer

Glen_Clark wrote: »

apologies to those who have read this before;
LIFE EXPLAINED in a tiny Costa Rican FISHING VILLAGE

A boat docked in a tiny Costa Rican fishing village. A tourist complimented the local fishermen on the quality of their fish and asked how long it took them to catch them. "Not very long." they answered in unison.

"Why didn't you stay out longer and catch more?"

The fishermen explained that their small catches were sufficient to meet their needs and those of their families.

"But what do you do with the rest of your time?"

"We sleep late, fish a little, play with our children, and take siestas with our wives. In the evenings, we go into the village to see our friends, have a few drinks, play the guitar, and sing a few songs. We have a full life.
"
The tourist interrupted, "I have an MBA from Harvard and I can help you!

You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat."

"And after that?", asked the fishermen.

"With the extra money the larger boat will bring, you can buy a second one and a third one, and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can then negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to San Jose , Los Angeles , or even New York City ! From there you can direct your huge new enterprise."

"How long would that take?" asked the fishermen again.

"Twenty, perhaps twenty-five years." replied the tourist.

"And after that?", said the fishermen.

"Afterwards? Well my friend, that's when it gets really interesting," answered the tourist, laughing. "When your business gets really big, you can start buying and selling stocks and make millions!"

"Millions? Really? And after that?" asked the fishermen.

"After that you'll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends."

[FONT=&quot]The moral of this story is: ........ Know where you're going in life.... you may already be there![/FONT]

I think the moral of this story is quite excellent and Young Businessman should take note. Your twenties are supposed to be some of the best of your life. So what if you drink £6 pints of lager; you know what, sometimes its fun to drink £6 of lager.

I measure my savings in terms of happiness. I might well drop down dead tomorrow and then i'd feel thoroughly !!!!ed off at having worked 100 hours a week through my 20's.

Think about it; life sorts itself out. That's not to recommend buying a new sports car on finance, but remember to enjoy your life or you'l end up in your 50's very rich but a very boring person.

perth_worker

Wow what an excellent tread! Have really enoyed reading the stories an mixed opinions on the balance between work and life!

I'm 26 yrs old now and have £65k in savings. Saved 18k whilst at uni (from schlorships, grants, working part time). Have been working full time for the past 2yrs and managed to save £47k - i have a really well paid job specially considering my age an experience but work in the mining industry in western australia which comes with its own set of disadvantages.

i feel pretty happy about my savings but not really sure where my life is going. Within the next six months i would like to quit my excellent paying job as i am not very good at it an have to spend a lot of time away from my partner an try working casually/part time an enjoy the free time. But i realise this may mean no more saving, which is a pretty scary thought.

I do enjoy my life, been on three holidays this yr, spend a considerable amount on eating out, cinema, gym memberships and gadgets (i have an iphone, ipad, laptop and a crazyly expensive unlimited internet plan) but i also enjoy saving (its pretty addictive) an have a direct debit set up straight after payday which takes out 65% of my wages to a saving account an blow the remaining

YoungBusinessman

Yeh sometimes it is better to stick at something for a while purely for the financial aspect of it. Looks like mortgage is going to go ahead. Even with mortgage + all costs of living in my own place, I intend on budgeting like mad and saving £2k per month for the whole of 2013, this will clear my £17k debts I'v got and pay £9k towards new business venture.

More will be revealed nearer the time, I believe I can achieve it all though and make 2013 about laying down some foundations to build on in future years...fingers crossed I get house though I love it!