25 and financially responsible...

Legacy_user
Legacy_user Posts: 0 Newbie
edited 8 May 2018 at 10:25AM in Savings & investments
Hello all :)


Since I turned 25 (in March hehe), I have been a bit obsessed with stacking up my savings and managing my finances well. I've always saved but i mean just more getting on it! I guess turning 25 does make you think about things...Did or did other people feel the same when they were 25? I guess I'm more just changing my attitude about how I think about money, so it can work for me. I'm interested to hear what other MSErs do so they can be the most financially responsible they can be? Like what are your money goals/techniques and what do you do to achieve those? And what advice (for those who are 25+) would you give to a 25 year -old or your 25 year old self looking back? :)


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Comments

  • fun4everyone
    fun4everyone Posts: 2,339 Forumite
    First Anniversary Name Dropper Photogenic First Post
    "Start investing now"
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    fun4everyone wrote: »
    "Start investing now"


    Yes I have started :)
  • wjr4
    wjr4 Posts: 1,119 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    I'm only a bit older than you but 3 things:
    1) Repay debt ASAP
    2) Maximise employer's workplace pension.
    3) Start investing more as soon as my debt is repaid.
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    I got out of university when I was 25 back in the later 1980s. I had the advantage of there being no fees and getting a grant so I left with around 3k pounds in the bank and no debt. When I got my first job I made the decision to prioritize saving and pension contributions. I've done that for 30 years and it's worked out so that I'm now financially independent. The earlier you start and the more you invest and save then the less worry you will have.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Alexland
    Alexland Posts: 9,653 Forumite
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    edited 3 May 2018 at 5:24PM
    Although the compounding advantages of investing early are clear at 25 there are other competing objectives such as getting on and working your way up the property ladder (the ultimate leveraged investment?) and while it's important to start contributing to a pension (and getting employer matched contributions) it's probably not worth making more than circa 15% total contributions towards retirement for now with a view to increasing the % over time.

    For a basic rate young taxpayer the Lifetime ISA can be very useful.
  • sixpence.
    sixpence. Posts: 295 Forumite
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    I'm 28 and have decided that I want to spend the next couple of years saving and researching . I started in January - back then I didn't know what a fund was, and now I am confidently invested in vanguard lifestrategy and am researching managed funds.

    One of my goals now is is to do a basic accounting course, or at least read a lot about accounting, so I can learn more about this stuff, which in itself is an investment for the future.

    Books that have been good so far: the intelligent investor, rich dad poor dad (although it's a bit annoying).

    My main issue is that I don’t really enjoy this stuff, it doesn’t come naturally, but I think of it as a bit like cleaning the toilet. You don’t want to do it, but you’re glad once you have done it.
  • eskbanker
    eskbanker Posts: 30,939 Forumite
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    sixpence. wrote: »
    My main issue is that I don’t really enjoy this stuff, it doesn’t come naturally, but I think of it as a bit like cleaning the toilet. You don’t want to do it, but you’re glad once you have done it.
    Bog-standard advice on here is to wait until you're flush before investing.... ;)
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    sixpence. wrote: »
    I'm 28 and have decided that I want to spend the next couple of years saving and researching . I started in January - back then I didn't know what a fund was, and now I am confidently invested in vanguard lifestrategy and am researching managed funds.

    One of my goals now is is to do a basic accounting course, or at least read a lot about accounting, so I can learn more about this stuff, which in itself is an investment for the future.

    Books that have been good so far: the intelligent investor, rich dad poor dad (although it's a bit annoying).

    My main issue is that I don’t really enjoy this stuff, it doesn’t come naturally, but I think of it as a bit like cleaning the toilet. You don’t want to do it, but you’re glad once you have done it.

    I'm tempted to compare your investing to painting.....step away from the canvas before you over work stuff. I'll be interested to see how, or if, you apply your research into actively managed funds.

    I've heard the author of "Rich Dad Poor Dad" speak on TV and he strikes me as a bit of a charlatan and not someone I'd use for financial advice.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Alexland
    Alexland Posts: 9,653 Forumite
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    sixpence. wrote: »
    One of my goals now is is to do a basic accounting course, or at least read a lot about accounting, so I can learn more about this stuff, which in itself is an investment for the future.

    I can recommend studying with CIMA. While it has not given me any particular investment skills it has helped my career generate the income to make a high level of regular pension and ISA contributions.

    Alex
  • capital0ne
    capital0ne Posts: 872 Forumite
    First Anniversary First Post
    Alexland wrote: »
    ....while it's important to start contributing to a pension (and getting employer matched contributions) it's probably not worth making more than circa 15% total contributions towards retirement for now with a view to increasing the % over time.
    There is a rule (to be broken of course) that you should use half your age as %ge of your salary to put into a pension. Once you start you stick with that %ge till retitement - no need to increase it if you keep on contributing.

    So if you start at age 20 you just contribute 10% of your salary.

    If you start at age 40 you contribute 20% and so on,
    Another little rule (to be broken of course) is that you'll need a pot of money twenty five time the pension you think you'll need.

    So if you want a pension of say £30k, you'll need £30k x 25 in your pot i.e.£750k

    Hope that helps.
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