Long term savings diary of a soon to be 22 year old

richardvc

OP, don't worry about the neggy comments.

This forum often shocks but never surprises me.

I think you're doing great and have a plan for the future.

The good news is with a savings pile like that YOU will be able to make some decisions that others of a similar age could only dream of ie smaller mortgage, holiday home, new cars or investments, whatever you want to do with the money.

When you sit back in a few years time you won't be thinking of the criticism ! And if life doesn't go to plan you will have a safety net.

Good luck to you.

[Deleted User]

I remember blowing £3000 on a 5 week road-trip around the states when i was 22. That rocked. Your 20s vanish in a blink of an eye - enjoy it while you can, before you've got a mortgage/job/kids/responsibilities.

I could never have a holiday like the one I had at 22, now - and a few grand isn't much in the big scheme of things. Having a 'saving' mentality is great, as long as you don't waste some of the best years of your life by 'hording'

(After the big holiday at the end of uni, i did knuckle down and get a job, saved for a deposit, bought a house, got married, had 2 sprogs, moved house again - but I'll still remember that holiday for the rest of my life)

lawriejones1

I would also say that, having been 22 and in your position (long-term partner, job, mortgage etc.) that things can change pretty quickly at that stage of your life.

You don't see many 22 year olds pacing the halls of B&Q choosing wall paper, and in my eyes, that's a good thing...!

mrsweep

YoungBusinessman wrote: »

Well this went....different to how I expected. Of course savings amounts will be discussed its a savings board? Having a weeks holiday is hardly "living life to the full" is it? I'm away for 2 weeks in August with OH. We have just bought our first place the end of last year I just don't want to be stuck living payday to payday and having to pay a mortgage all my years. Work is good we work about 5 weeks in advance, meaning could be off 5 weeks and still get paid. I'm trying to make the most of that. I just want to try and better my financial position and get some money tucked away before marrage and kids. What's so wrong about that?

Nothing wrong at all. What I would say though, is don't just save. Invest. I mentioned Tim Hale's book Smarter Investing in my earlier reply. I would strongly recommend it.

YoungBusinessman

I will be moving on to investing once iv got 6 months salary in savings. Currently working towards that and should be more or less there by the end of 2013 so will be looking to start investing next year. Will get the book ordered and read it a few times before the end of this year so when the time comes to invest I am a bit more clued up.

Some people seem to be replying without reading my posts, iv already got a mortgage. There's some people my age got £25k outstanding on a Focus RS(or other "fast, sporty cars), I could easy have gone down that route and had "fun" rasping about in it showing off however I'd rather do it my way, put my money towards buying a house and now iv done that I'm able to pay it down a bit(mortgage term is 20 years so runs till I'm 41 if no overpayments are made) which is not an old age to be mortgage free at all. Once iv made overpayments to mortgage me and OH will save up to buy a nicer car in cash outright then get building the savings up again.

This thread was in no way to boast just somewhere to track my progress and get some help and advice along the way. There seems to be some ridiculous jealousy posts so far in amongst some really good advice. Anymore petty "stop saving/boasting about savings, you boring 21 year old" will just be getting stuck on ignore. Not going to waste my time reading them when I could be out living life to the full...by going to Ibiza It seems!

Reue

N1AK wrote: »

You're right that no one gets rich by saving £10k a year for a couple of years but if that gets them a deposit, allows them to pay for things without needing credit and avoid debt then they can work out considerably better off in the end than they would have been.

Calculating OP's pay from "Aim is £15k by end of year that is about 5 months net wages" gives ~£3k p/m net or ~£36k p/a net.

If OP can manage to save £15k per year, thats a net savings rate of 42%.

Assuming 5% investment return (after inflation) and a withdrawl rate of 4% required, OP would have suitable funds to retire after 22years, or at age 43.

Certianly not rich, but not bad for 24 years early retirement

ozzage

If you keep up this attitude, live frugally and grow your wage to a decent level you could retire at 45.

Or you could enjoy some trips to Ibiza now and maybe even get into some good fat debt problems to show you know what life is really all about.

I'd suggest take option A, and then spend 50 years of financial independence doing whatever the hell you like and being glad you aren't like the rest of the population.

Edit: WHAT HE SAID ^^^

Reue

ozzage wrote: »

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Edit: WHAT HE SAID ^^^

Great minds think alike!

tiger_eyes

I find it bizarre that the OP is getting told off for saving money... on a money-saving forum! Not every twenty-something wants fast cars and expensive holidays and debt. If he can pay off his mortgage and retire early, he can spend the rest of his life reaping the benefits. I can't understand why people are actively discouraging him. Crazy.

lawriejones1

I think that most people are suggested a more measured approach to life in which you save and spend moderately and enjoy yourself which it seems you are doing.

Please don't take this personally...

Saving every penny you have for the future isn't a healthy relationship to money, it's just odd. Spending every penny you earn and running up debt is reckless. There is a comfortable middle-ground to be had.

It also predisposes that there will be a retirement to look forward to, that you will always have that level of income and that things will always remain the same in your life and that circumstances never change - they don't.

People who are obsessed with money, savings and everything else can be incredibly one-dimensional, dull and poor company. We all know someone like that. Make sure it's not you!

Good luck with your saving...