I have 80K and I'm young , what to do ?

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savage444
savage444 Posts: 8 Forumite
in Savings & investments
Hi guys I'm 20 years old and have been lucky enough to make just over 80k from my online business . Now all my life I've been wanting to earn money and now i am earning I'm looking for ways to keep or even grow my money . Im torn between a few decisions , such as getting a mortgage for a house or investing into stocks or shares but i really don't know what will be the best for me . another problem though is that with my business there is no recurring income meaning some months i make thousands the next months i make nothing. Any advice will be great . thanks guys have a great day :j
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  • Wassa123
    Wassa123 Posts: 393 Forumite
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    If you're making a lot of money in some months and no money in other months then you should keep some of it locked away in an "business" account as a "salary pool", and then take a modest income from it every month to even out the highs and the lows.

    Personally I'd keep this separate from an "emergency" account, as the money in your "business" account is actually your future salary.

    Once you have this system in place with an idea of how much you need to balance your books, you can look at investing / mortgage. Essentially, don't spend/invest it all and then be screwed when you have a few months with no income.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    At that level of income I'd consider opening a limited company for myself. There will be local accountants who are used to doing this routinely. A youngster in my extended family was impressed by how quick and cheap it was.
    Free the dunston one next time too.
  • AndyPK
    AndyPK Posts: 4,241 Forumite
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    split the money up,
    Open 2 savings accounts. (at least one with easy access)
    You may also like a Santander 123 current account which will earn 1.5% on upto £20K so this could be a good source of funds to smooth the months out. (needs 2 DirectDebits, there is a fee £5 but if you pay any house hold bills out this account (or mobile phone / BB) you get cash back.
  • sjp999
    sjp999 Posts: 146 Forumite
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    kidmugsy wrote: »
    At that level of income I'd consider opening a limited company for myself. There will be local accountants who are used to doing this routinely. A youngster in my extended family was impressed by how quick and cheap it was.

    You might even find that your accountant will use the outfit that opened my most recent incarnation - free company set up and 2 years free banking.

    Not sure where they (the ltd. company opening outfit) make their money from but who cares, the only thing missing from previous company set ups was the franking stamping thingy that embosses your company name and registered number - I obviously miss it so much I've forgotten what it's properly called - that or the few brain cells that stored that bit of info have died, which is way more likely :)
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    What on earth do you do to make that much ?
  • savage444
    savage444 Posts: 8 Forumite
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    Hi guys thanks for your replies Forgot to mention that i already have a business account with all my funds in and pay myself a wage each month but leave the majority of my money in a LTD company business bank account , this is the money that i would like to do something with . such as mortgage a house or invest . Never really thought about putting into a savings account i feel like the banks give rubbish interest rates. thats why I'm thinking if there are other investment ideas that would be better for me as I'm still very young i have time on my side . Thanks again for all of your replies
  • savage444
    savage444 Posts: 8 Forumite
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    I sell products with shopify . you've probably seen my adds on Facebook lol .
  • roadblock15
    roadblock15 Posts: 29 Forumite
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    What products do you sell, I’m intrigued?

    My mate sells pirate copies of films, software, and music and makes over £2k a month at car boots
  • roadblock15
    roadblock15 Posts: 29 Forumite
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    He does a special offer, £1 a film... but you can get 10 films for £10
  • Prism
    Prism Posts: 3,803 Forumite
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    savage444 wrote: »
    Hi guys thanks for your replies Forgot to mention that i already have a business account with all my funds in and pay myself a wage each month but leave the majority of my money in a LTD company business bank account , this is the money that i would like to do something with . such as mortgage a house or invest .

    You are a bit limited as to what you can do with this money as it isn't yours yet. Anything you do has to be within the confines of the limited company and therefore all profits you make will be taxed and have to be reported. I like to have at least a years worth of income (salary and dividends) as cash in the business and enough to cover expenses.
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