How much should a 20-30 year old have in savings

takesyourchances

FIRSTTIMER wrote: »

Thats awesome to read. I want to be in a similar position around age 40. Although, I am contemplating a second home as a cash cow and leave on long term rent.

A second home is not all what is cracked up to be as a "cash cow" it is not easy for it to be a cash cow as such, it's a business as such and requires a lot of research and work. I am 39 now, quite similar in investments overall to Fatbritabroad, early 30's I would be accumulating as much as possible into stocks and shares ISA etc ( I still am) with time on your side to ride out the up's and down's.



I had pension investments from my early 20's and property investments from early 20's as well, from about 32/33 years old I was really increasing into stocks and shares ISA's as well and heading towards 40 now feel it has paid off and with less hassles than property, I also have investment in property IT's too which don't look for repairs or call with problems

Property I feel is fine as part of a portfolio but not as a bulk as such. Good luck, this forum is excellent with various experiences

Fatbritabroad

takesyourchances wrote: »

A second home is not all what is cracked up to be as a "cash cow" it is not easy for it to be a cash cow as such, it's a business as such and requires a lot of research and work. I am 39 now, quite similar in investments overall to Fatbritabroad, early 30's I would be accumulating as much as possible into stocks and shares ISA etc ( I still am) with time on your side to ride out the up's and down's.



I had pension investments from my early 20's and property investments from early 20's as well, from about 32/33 years old I was really increasing into stocks and shares ISA's as well and heading towards 40 now feel it has paid off and with less hassles than property, I also have investment in property IT's too which don't look for repairs or call with problems

Property I feel is fine as part of a portfolio but not as a bulk as such. Good luck, this forum is excellent with various experiences

Funny im starting to contemplate btl. I've never been able to make the numbers work but as an income stream I can see let property working well to help early retirement

takesyourchances

Fatbritabroad wrote: »

Funny im starting to contemplate btl. I've never been able to make the numbers work but as an income stream I can see let property working well to help early retirement

I think the right property can have it's place and property can be a good income stream if all set up and run well, but the ltv needs to be low with a high deposit so mortgage payments and costs associated with property is not taking all the income. The tax laws are not as favourable as they were. I've a few friends basically 100% in btl with lots of stresses and hassles and fear the stock market, more from lack of understanding of it.

Fatbritabroad

Totally agree I'd have it as a side thing to shares but considering hmo or student let's. I realise more hassle etc but two or three of them with a manager in place would go along way towards my being financially independent

Bravepants

If I ever contemplated BTL, it would likely be a small self contained flat rather than a house, especially one with a garden that would end up looking like the Vietnamese jungle!

John_G_Jones

tjlane wrote: »

I feel most people my age have bigger savings than me

Nothing at twenty, £200,000 at thirty.

You want to then be worth £1m at 40 and at least £3m at fifty.

After that it probably varies a bit based on how much you sell your second company for. Something between nothing and £10 billion would be about right at sixty.

darkidoe

I have been looking for more accurate data in this aspect as well but I can't find any reliable sources.

Here are some US centric models:
How Much Savings Should I Have Accumulated By Age?
The average networth of Millennials by age

I think it is a very human thing to try and look next to your and wonder what the next person has got compared to you but I don't think it matters or helps in any way.

System

It depends on where you live as well as the job you do. In some parts of the country it is possible to earn a lot of money at that age and be able to plan for the future and in other parts (for example Cornwall, where I am) wages are very low, there isn't an enormous amount of choice in the job market and house prices are high, so continuing to live at home and saving is more of a thing (or upping sticks and moving away to earn better money is the alternative - which was what I did at 20, and stayed away for 12 years). It was a means to an end and it worked out well financially.