Average amount of savings for a 30 year old...

startingout2016

I’ve been toying with the idea of paying off the home improvement loan but it’s at such a low rate of interest and just ticking along the side of the mortgage that husband and I decided we’d be safer to have some available savings.
Not too sure if that is in line with a MSE point of view though

guccininja

startingout2016 wrote: »

I’ve been toying with the idea of paying off the home improvement loan but it’s at such a low rate of interest and just ticking along the side of the mortgage that husband and I decided we’d be safer to have some available savings.
Not too sure if that is in line with a MSE point of view though

Good idea on keeping the money. Use the low interest to your advantage so unless it’s goes up significantly, save it for a rainy day.

zoopyzoop

30 years old.
350k house paid for no mortgage (got abit lucky it went up in value alot. I did still pay off over 230k in cash though).

96K in mutual funds
100k in cash
40k retirement fund
80k cash in a business

So at 30k i'm at about £700k net worth. I currently rent out the flat and am making about 8% return on mutual funds so a passive income about 2500 a month that goes straight into mutual funds so its compounding nicely.

Reading this thread makes me think i'm wierd.

My top things I do
(1) listen to dave Ramsey
(2) invest in mutual funds and have passive income
(3) pay off property as soon as possible - it was a big step for me to do that, I was 29 and had just sold a business for 200k I could have easily bought a sports car and gone crazy but got knows how I decided to pay off the house instead. Im glad I did that now, it means work is now an option for me and I can take much more risk in my career.

(4) take big career risks. I have failed in 10 businesses and only been successful in 2.

(5) NEVER used any debt. Debt is evil and credit cards are a form of slavery. If you cant pay for something in cash you are sacrificing your future for your pleasure now. I run my businesses exactly the same way.

I would like to have 1m in assets by 32. I think its possible but will require abit of luck and good investment returns. I will have 1m in assets by 35 I am sure of that.,

:beer:

Im sat on a beach in Boracay right now trying to start another business.

misskl

That last post was inspiring!

I too am sitting on a beach these days (no beer because I don’t drink)
But my financial picture looks very different to yours.

I’m now 35, and I have:

13k savings (for house)
6k personal pension

(1k credit card)

I earn around 2200 a month after tax, live out of a suitcase and travel the world. I’m enjoying it so far, but know I need to up my finances (which is totally possible if I work a bit more!)

I’m fully aware it’s a little out of the ordinary, but I have decided to focus on making more time instead of money.

I can’t buy a house with time though, so my next step is to save a pot of money to start investing in shares.

CharllieSays

"in my twenties on minimum wage struggling to make ends meet on even the most frugal of lifestyles all those articles telling me I should be saving 20% of my income and I could do it if I just cut back on luxuries made me feel terrible about myself"


I remember a similar experience during the recession. I was sleeping on sofas struggling to get any job anywhere in the country and everyone was telling me I just had to quit being lazy and stop eating avacado on toast and Starbucks coffees and my life would magically change! :rotfl:The idiots in mainstream media were incredibly out of touch with reality (still are).



I actually tried avacado for the first time last year. It's revolting!



I'm 34 now. Life hasn't changed all that much. My debt is gone and my savings have increased, but house prices are also much higher so still out of reach for me. My salary hasn't changed, but I no longer have travel costs and don't have to get up at 5am so I'm saving money on zero transport and not getting sick from sleep deprivation. Which is nice. Life is a lot calmer now.



I'm used to living on nothing, so the extra disposable income I just throw into investments and a LISA. At this point, I'm fairly certain I won't live long enough to use them, but it's nice to have something to leave to my younger neices / nephews when I'm gone.

savingwannabe

Charllie love I had almost the same savings as you when I was your age and have a house now. Still some way to go on the mortgage but it'll be owned vvv soon. Keep at it and don't stop. Onwards and upwards my friend.:j:A

zoopyzoop

I don't agree that the media is being 'mean' to millennials, I am one and can see we have it the best its ever been. (with the exception of having alot more hyperactive distractions to handle). It is only self control most people our age lack and the shock of having to learn or do things we don't want too after 5-10 years of being a semi adult between 16 and 25. This is one reason older people dont understand is it a lot more difficult to actually FOCUS than for previous generations.

Anyone trying to 'get money' as the first goal is not doing it right. You need to focus on working out what value you can provide to others (that you actually like doing so you get very good at it) and then money will flood too you. Saving 20% of a bad salary isn't worth it.

The biggest wealth building tool is your income (Dave Ramsey quote).

Gandhi

Looking back, at 26 my wife and I had about 15k debt due to redundancies during the financial crash..

At 27 I got a new, hopefully career-long job overseas, and my wife stopped working. At 30 we had no debts, and about 90k in the bank and 35k or so in retirement funds.

Big pay bump at 31. Saved hard and at 33 took advantage of the 20% drop in the pound vs USD and we’re able to purchase and renovate a house in the U.K. with cash, about 255k total expenditure. That more or least wiped us out of savings. Retirement pot stood at about 80k.

Now, 3 years later we’ve still got our house, probably worth around 250k. Pension fund stands at around 220k and cash/liquid investments around 85k.

I’m fortunate that I pay low tax (around 13% total), so while the going is good I intend to take advantage of that. I take home around 12.5k after tax. Rent is 2.5k (yikes), living and bills comes to around 3.5k. I’m aiming for 70k pa saving.

I realise I’m very fortunate, but I’m also acutely aware that the rug could be pulled from under me so I’m trying to make hay. That’ll either provide security should something happen to my income, or allow me to explore another role if it doesn’t.

When my (Non retirement) liquid savings hit 150k I plan on buying a mortgaged BTL with 75k, have a 25k emergency buffer and 50k left invested. All things being well I can rinse and repeat until the wheels come off or I decide to do something else.