Unemployed Graduate 100k dilemma; share your life experience

stardust09

How old are you exactly, out of interest? Given the pressure you describe (and I feel just from reading your post), my concern is that if you continue to believe that being the 'product of your environment' is more or less inevitable, then you will have burnt out by the age of 30 and live a life of unemployability because your brain will be fried from stress and depression. I have seen this happen to people time and time again, and I also believe that the intense academic pressure from a young age is leading to a set of very emotionally unhealthy young adults in the high-achieving group.

To put it into perspective, it took me until I was nearly 40 to have 100k in the bank for my house deposit. And, yes, life is risky but it's taking calculated risks and some gambles that help us to succeed and open our eyes to a world that we didn't even know existed. Alan Sugar and Richard Branson didn't get to where they were without doing some dreadful jobs and taking some risks and seeing every 'mistake' as a learning opportunity.

I did a degree many years ago and only did one summer of internships. The previous summer I worked in a factory and a library, which made me realise how much I needed my degree so I didn't end up sticking labels on toiletries for life (it was awful and a very bullying environment). Post-graduation, I pursued one career in my field until I was 26 then realised it wasn't as fulfilling as I wanted and the idea I'd had, and been led to believe, about what I ought to be doing with my life was flawed.

I took a huge gamble, left my job, moved away and did a postgraduate course in an area that interested me (I saved and worked my way through that one year course - it was really tough, studying or working 9am-8pm every day). I decided that if I didn't like it, then I could get the qualification and return to my previous career in a nicer role. However, it turned out to be a great move - I loved it but after my course, jobs were a bit slim on the ground in that field and, at the age of 28, I had to work on the checkouts in Tesco for 3 months (again, not what I'd ever planned for myself but I needed some money). I then managed to get a foot in the door, got plenty of paid work experience then put myself through the incredible pressure of doing a professional doctorate (as opposed to a purely research doctorate) at the age of 30. I now run a successful business 10 years on and am happy with where I ended up.

It wasn't a standard route through life but I have learnt that taking very scary risks and trying new things has brought me much greater contentment than I would have if I'd stayed in my previous rigid mindset. That pressure cooker of exams is very familiar to me (1 degree, two postgrad courses, one doctorate) but whilst I channel that ambition or, as you put it, 'a baked in drive to succeed' into my work, I do it in a healthy way that helps me to work hard and play hard. You only get one life and it shouldn't be all about work.

You are fortunate to have so much money behind you at your age, as a result of your own hard work and initiative. Maybe you can relax a little and gamble on doing some lower paid jobs or living somewhere that isn't ideal just for the short-term until you get to where you want. You have that financial buffer so take advantage of it. I wouldn't get too hung up on getting a property either - you need a job and a stable life first, knowing you will settle somewhere. Properties come with responsibility and limit your options to move away at the drop of hat if your career progresses - selling and buying a house is incredibly stressful and time-consuming. House prices are also stupidly over-inflated so I don't see it as a investment really and why buy at a time when the market is probably at an unsustainable peak and you have a lifetime ahead of you?

I guess I'm saying, if you keep doing (or thinking) the same thing, you'll get the same results. You are clearly very unhappy and it's not working for you. Maybe take some tiny risks and see what happens? If you're going to be working for many more decades, you certainly don't need to get too anxious about losing time and opportunities now. The main opportunities you seem to be missing out on are forming healthy relationships with others, finding hobbies and interests and making the most of being young. You will never get that back and social skills will get you a long way in job interviews, networking and your career - don't underestimate that.

I hope you can find some pleasure in life whilst trying to launch into a fulfilling career. Anxiety is a horrible feeling but you don't have to let it define you.

justme111

jpuphill wrote: »

I have never heard of someone going travelling to find an employer, unless you're talking about Norman Tebbit's father. Everything is online, so going in person to find an employer outside the EU and getting a work VISA is advantageous how? Especially as there has been significant rise in exploitation of travelling workers who depend on employer sign off for visas in countries like AUS / NZ

Exposure to property would bring income

I meant some prearranged job placements abroad.There seem to be agencies that deal with it - seasonal watering at Tenerife, the same aus/NZ. What do you mean by "exploitation"?
Re property- apologies missed your number. Question about who is going to deal with management still stands.
It is up to you I suppose - calculate rental yield of property taking into account maintenance , legal disbursements, wear and tear , possible bad tenants , taxes (I know now you do not have other income so it will be within allowance but what about later). Compare it to your guesstimate of investment return and decide for yourself. Posters on here said no because it will take away from your flexibility, would be all the eggs in one basket and illiquid and you yourself listed those factors.

jpuphill

there are lots of news articles about it in past 3 years - https://www.google.co.uk/search?q=agency+travel+work+visa+exploitation&oq=agency+travel+work+visa+exploitation&aqs=chrome..69i57.10985j0j7&client=ubuntu&sourceid=chrome&ie=UTF-8

As an example, reasonably easy to find nice 3 bed semi / end terrace for 140k with 700pcm average local rent, 70k down, after expenses and risks that is 7%+ ave return over 5 years.

That is why I was looking at pibs, similar levels of risk as owning bricks and mortar and come with 6% coupon. They both have issues I'm well aware just throwing ideas around

justme111

What do you mean "70 k down"? Where are you going to get other 70 from ?
With travelling exploitation there are 2 points to be made as I see them. One is that scary stories can be written about anything at all. Giving birth , going to the dentist, staying at home with mother without work, going all inclusive to Dominican Republic - you name it. Second is that all choices have downsides. You have to pick the lesser of two evils. Between struggling with life staying at home having mental health issues due to trying to find rental in London being super gifted academically and struggling socially and risking having a drunken man wee himself on a top of a bunk bed while I am at the bottom or having to wait to have a drink I can see which set of circumstances is more likely to adversely affect me

jpuphill

What do you mean "70 k down"? Where are you going to get other 70 from ?

With a 50% deposit I can get a B2L mortgage from projected rental income, I don't need to be employed to meet the eligibility criteria

stardust09

jpuphill wrote: »

With a 50% deposit I can get a B2L mortgage from projected rental income, I don't need to be employed to meet the eligibility criteria

For someone who says they are very risk averse, this sounds quite risky to me. Apart from the deposit and solicitors' fees, you'll have the initial set-up costs of preparing the house to rent out, finding good tenants, ongoing maintenance and legal requirements (e.g. annual gas safety checks, fire regulations), replacement of items like boilers, etc, so you are only leaving yourself with very limited assets should you need to pay for further career development, decide to take a low paid job to get experience, or your mum needs to borrow more money from you. Whilst I'm sure you could do it, given your entrepreneurial spirit, it seems a bit different to your usual cautious approach. I would say that this is no less risky than investing in the stock market long-term but is a lot more hands-on work.

jpuphill

Maybe I should clarify, I'm not risk averse, I just put 13k in funds, I have 6k in stock, it is all research based. I hold vanguard 80/20 as I can tolerate the risk of market drops at my age.

I know where you're coming from, I'll lay my back of the envelope calculations down. I would be aiming to have 15k cash minimum for liquidity but yes, set up costs would be large hence why it is a long term hold, I have been researching my area of interest for 9 months, this isn't a sudden whim.

Overall I don't think the costs are that significant. Purchasing costs, stamp duty 300, legal and survey 2k, standard annual costs (licence, insurance,certificates etc) less than 400p/a , one off energy certificate, credit check, tenant acquisition less than 300 for ongoing maintenance I would set aside 800 a year from income to top up my cash reserve

The pressure behind it is that I have heard from many people who were working through the 80s "I wish I'd bought a house when I could have afforded it" different parts of the UK rose at different times, I think it was '82 where my mum was at the time but it was '84 for her friend, after that bump up they never had the opportunity to get on the housing ladder and now they late fifties / early 60s unable to retire when they reach 67 as state pension + private won't cover rent and living expenses. It is also common for people to say 'if only I'd set something aside' or "if only I'd invested when I had the chance". If I'm not exposed to property (which out performed markets) then by the time I'm settled with average wage I won't be able to afford a house and will have to live under the yoke of AST. So my general view is, it is a risk NOT to be exposed to property. (I've been homeless very briefly and I don't want to have go through that when I'm in my fifties

jpuphill

I think it will be the defining point of my generation. Home ownership isn't something I particularly aspire to under normal circumstances but because it is such an issue in the UK I feel anxiety about security of shelter when I'm older.

I think I've answered this with your help, the work and anxiety to maintain it over the long term would be the same or even exceed the anxiety of not having a home when I'm older. I need to stop trying to future proof so I need to move away from trying to manage all aspects of what might be ahead. I HEAR YOU ALL, we are making progress

No more mention of B2L

So how best do I put the cash pile to work? I think the aim for at 50%-70% of the portfolio is long term capital growth with moderate risk exposure but I don't want to lump it in one go as that would be the same as 'timing the market' to jump into the longest bull market in history.

I'll open a LISA and max it, do the H2B ISA transfer before April and then next financial year I have new ISA allowance. Will update after I've researched best LISA platform and got the account, all ideas welcome, thanks all

bigadaj

I'd say your most urgent issue is finding work or a project and commencing that.

Until you do that then you can't say where you will live and have a fixed base so the issei around buying a house can't be sorted.

Similarly so,you want to travel, that would be best done now given you have the financial means, it's soemthing I did when I was younger and I don't regret it, and probably would if I hadn't done it. However were all different and it doesn't sound like soemthing you are really keen on.

Once you know where you will be you can assess housing, and then have a better idea of how you might use your capital given you can then allocate it over a sensibly defined time period.

alwaysready

Okay. I am not try to be offended. im just saying what i am thinking.
Unemployed rate is serious right now... that's a fact. However, there are still many places that need workers.. this means that people only have specific jobs they want to work. And if that doesn't work, they are considered them as unemployed. Well, I admit do what one likes. However, this unemployed rate is a little bit not precise i think.