Best Way To Invest Money At 21

dd95

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

i completely disagree, how is renting more beneficial? You are effectively pouring money into somebody else's property. At east with your own house and mortgage you have an asset at the end of it

grumiofoundation

dd95 said:

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

i completely disagree, how is renting more beneficial? You are effectively pouring money into somebody else's property. At east with your own house and mortgage you have an asset at the end of it

It is likely actually more beneficial to rent financially if you aren’t going to/or at least can’t guarantee living in that area for a decent period of time 3 years plus as a minimum because buying/selling fees all wipe out most of not all the rent saved let alone the sacrifice of all the first time buyer perks.


Secondly buying a house at a young age may tie you to an area, e. g. make it harder to move for a better job. 

dd95

grumiofoundation said:

dd95 said:

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

steampowered said:

benbay001 said:

Unless your parents have a massive house, i really dont think they are going to want to living there when youre in your late 20s.
Id focus upon getting ready to move. As said, get a LISA.

benbay001 said:

And no matter how big your parents house is, not having your own and staying with parents becomes embarrassing as you get older.
I flew the nest at 21 and have never looked back. 

I don't know why people are suggesting trying to buy a house in your early twenties. Your first property  outside the parental nest should be a rental !!!! 

Owning a house with a mortgage makes it much more difficult to pursue study, travel or work opportunities. When you are young there's a massive economic opportunity cost to that.   

As a young graduate entering the job market there is a very high chance that you'll need to move to access the best graduate job opportunities. You might also decide you want to pursue further study elsewhere in the country, or spend some time travelling or working overseas. 

Only buy once you are confident that you will be staying in the area for an extended period of time, know what you want and have a decent deposit together ! 

i completely disagree, how is renting more beneficial? You are effectively pouring money into somebody else's property. At east with your own house and mortgage you have an asset at the end of it

It is likely actually more beneficial to rent financially if you aren’t going to/or at least can’t guarantee living in that area for a decent period of time 3 years plus as a minimum because buying/selling fees all wipe out most of not all the rent saved let alone the sacrifice of all the first time buyer perks.


Secondly buying a house at a young age may tie you to an area, e. g. make it harder to move for a better job. 

By applying that logic you'd never buy a house then as you may move up the job ladder at any time..

[Deleted User]

You started your post talking about the best way of investing money. I'd recommend learning more about approaches e.g. start reading through this series of blogs:

https://jlcollinsnh.com/stock-series/

Or watching some YouTube videos e.g.:

https://www.youtube.com/watch?v=gM4KEJQ_Z5U

I can recommend these as this is what I'm reading and both of their books are being delivered tomorrow.

But to try and sum up the above (or from how I understand it) would be roughly to say choose a low cost, global, passive, index tracker. This may take the form of VWRL from Vanguard for example. I'd say this should be seen as a minimum 5 year investment and likely more like 10 years. This means if this is a fund for a house deposit then you need to be sure you're happy with your current choice of staying at home, as it may be when you want the money for a house deposit you can't, or shouldn't, sell the shares if they've crashed in prices. It's a risky affair investing money in shares if you need the money for something important or don't feel like you can just wait if / when something rocks the markets a bit. If however you feel certain that being at home isn't a problem and you're happy as you are, and you fancy the idea of growing your savings at 5/6/7/8% on average, then yes, consider it. Personally I moved out and rented with a group of professionals, I wouldn't rent by yourself as that'll cost you a premium and renting with others reduces bills and overall rent cost (electricity to light a kitchen / living room is the same whether it's just for you or for four). I rented in a couple of house shares for 13.5 years and saved a huge house deposit and then bought. I also took advantage of a HTB ISA which is now a LISA (free 25% from the government when you buy). I'm now settled and know where I am, I can think about investing and building a nest egg, and that I have. Now is a great time to start, even if it's just drip feeding into something. Just know the best thing you can do with investing is less is more, just stick to a low cost, global, passive, index tracker, and know you're beating 80% of the rest of the people who try and pick specific shares / funds etc.

As some have commented above, if your work offers a work pension then put as much as you can in that and ensure work matches as much contributions as they will. This should mean you'll get a great pension, it's the 1 thing without a doubt you should do. Just sign up for 5/6/7% of your salary, hopefully work will match your contributions (i.e. your total % will be 10/12/14%), select a fund e.g. again a passive global tracker fund, and then you can forgot about your pension pretty much, in the knowledge because you started early you're pretty much set. Just review it yearly, look at how it's doing, ensure you're happy. Also pick 100% equities, you're young and don't need to be worried about getting bonds to smooth the ride, the next 40 years will sort that. Get the most gains by picking equities. Same goes for any investing you might consider doing.

I wouldn't buy and rent a property, sounds like hassle and I wouldn't fancy being a landlord. I doubt at a young age it'd be much fun taking on the financial worry and stress of finding tenants and sorting out whatever problems may come.

The best thing is coming at this young means whatever you do, you're in a great position, because you have time on your side. Live and enjoy life, but do put away some savings, ideally in S&S, as this is where you'll see the most gains, and if possible drip feed into it, and leave it for as long as you can. 

mark13

I'd keep the premium bonds as they are for my emergency fund., I'd move my ISA to someone like IWEB S&S ISA and put my money into a couple of funds and let them build up.