How much disposable income would be considered well off for an 18 y/o in the UK?

PlymouthMaid

Phillip I would say that you are in a stronger financial position than most 18 year olds so well done. When you are a student I would suggest that you take the cue from your peers as to how much to spend on joint nights out and dont 'flash the cash' just because you can. Your finances are pretty much your business not theirs. Take the available loans but if you dont need to spend it then invest it until you need to start paying it back one day. You will be working very hard at uni with not much time to spend but at least you will be able to afford a decent holiday in the Summer hols if you want and not be worrying about paying your bills.

philip1427

PlymouthMaid wrote: »

Phillip I would say that you are in a stronger financial position than most 18 year olds so well done. When you are a student I would suggest that you take the cue from your peers as to how much to spend on joint nights out and dont 'flash the cash' just because you can. Your finances are pretty much your business not theirs. Take the available loans but if you dont need to spend it then invest it until you need to start paying it back one day. You will be working very hard at uni with not much time to spend but at least you will be able to afford a decent holiday in the Summer hols if you want and not be worrying about paying your bills.

Thanks! This is so helpful. I agree about not flashing cash etc because I really want to make some solid friends at uni that just don't want to hang out with me because of my money. In fact even though I have been seeing my gf for over a year she has no idea about my extra income bar my part time job. I think this is the best thing to do primarily so I know she is not 'with' me for money. Also it means there's no discomfort on her part either. In regards to loans, I have not taken any because I live in Northern Ireland where fees are ~3k per year. Is it a good idea to take out the loans for investments? Isn't there interest on the loans?

PlymouthMaid

Glad you found my post helpful Phillip. I think you need to find out more about the current loan system as I am out of date possibly and also wouldn't know how it may differ in N/I. I expect others here will have good advice for you about that.

Credit-Crunched

philip1427 wrote: »

Credit-Crunched passive income is when you make an income which is not linked to the time you spend on it. E.g working at Boots is active income because I am directly rewarded for the amount of hours I work. I hope this helps 😎

LOL, i understand what a passive income is!

My question was where it was from?

To generate that income, assuming an annual yield of 5% (net) a lump sum of £200,000 would have to have been invested?

Did your notes generate a lump sum of that magnitude, or are your numbers a little skewed.

In addition, that income will be taxable?

jimjames

Credit-Crunched wrote: »

LOL, i understand what a passive income is!

My question was where it was from?

To generate that income, assuming an annual yield of 5% (net) a lump sum of £200,000 would have to have been invested?

Did your notes generate a lump sum of that magnitude, or are your numbers a little skewed.

In addition, that income will be taxable?

If you're selling something then there is no concept of yield, all income is what's received, there is no capital sum unless you sold your idea or product to someone else. Income of £11k could be just from sales of £11k, it doesn't suggest the numbers are skewed.
Tax would be an issue though. Or it means the job income is fully taxed if personal allowance used for this passive income.

Credit-Crunched

jimjames wrote: »

If you're selling something then there is no concept of yield, all income is what's received, there is no capital sum unless you sold your idea or product to someone else. Income of £11k could be just from sales of £11k, it doesn't suggest the numbers are skewed.
Tax would be an issue though. Or it means the job income is fully taxed if personal allowance used for this passive income.

I think you are confused.

If one is selling an item, that is not passive income, that is earned income. Unless it is royalty income, which could be a possibility.

Passive income, is income that is generated and paid, regardless of items sold, business created.

i.e trust income, income from investments etc

[Deleted User]

No - normal teenagers do not spend £100 on a dinner with their girlfriend. Hell I'll only spend that on my wife if it's a birthday/anniversary dinner.

You'll be surprised at the mix of people at uni. Your 'passive income' will be great for covering the costs of university live, but won't make you stand out as a 'rich kid' by any stretch of the imagination.

I do hope the taxman knows of this income..

philip1427

Credit-Crunched wrote: »

LOL, i understand what a passive income is!

My question was where it was from?

To generate that income, assuming an annual yield of 5% (net) a lump sum of £200,000 would have to have been invested?

Did your notes generate a lump sum of that magnitude, or are your numbers a little skewed.

In addition, that income will be taxable?

My notes did make a hefty lump some but I wish it was 200k! I consider that passive income because I gain money from its royalties. I have invested some money into peer to peer lending which is giving me a return of 10.8% at the minute. I also have other investments. These total to around 11k My numbers are not skewed lol I'm very particular about these things hahahah

philip1427

ringo_24601 wrote: »

No - normal teenagers do not spend £100 on a dinner with their girlfriend. Hell I'll only spend that on my wife if it's a birthday/anniversary dinner.

You'll be surprised at the mix of people at uni. Your 'passive income' will be great for covering the costs of university live, but won't make you stand out as a 'rich kid' by any stretch of the imagination.

I do hope the taxman knows of this income..

Thanks for your comment. I'm so glad I won't stand out as a rich kid because that is my worst nightmare! In ref to tax you don't pay tax unless your total income is above 17k. I'm not allowed to post links yet but if you google tax on savings interest then it will direct you to this info on the governments website

[Deleted User]

philip1427 wrote: »

Thanks for your comment. I'm so glad I won't stand out as a rich kid because that is my worst nightmare! In ref to tax you don't pay tax unless your total income is above 17k. I'm not allowed to post links yet but if you google tax on savings interest then it will direct you to this info on the governments website

They key thing to learn, probably as general as an 18 year old - is don't be a !!!!. If you flaunt money at uni, you'll find a few things happen - you gain 'fake friends' who are happy to leech off you, and you push away 'genuine friends'.

I knew a guy who'd just inherited £75k around the time he started uni. An absolute bell-end, and I avoided him. He blew his money on cars and drink.

Anyway, the general rule of thumb in polite British society is to not talk about your money. So don't. Get some good friends. Do stupid things. Do all the stuff you won't be able to do when you're settled down in your late 20s/30s. Don't worry about student debt too much; it's not the same as 'regular debt' (The kind they'll take your stuff away to pay).

I thought the lower boundary of income tax was £11k - I'm pretty sure you should be paying 20% tax on your income over that.

</Advice from a mid-30s bloke>