Advice to a 19yo?

Amit92 · 13 November 2011 at 2:55PM

Hello

Basically I need an insight to wear to invest or potentially save my money, and maximise returns?

I can save/invest about £1k a month. I have a small amount saved up in a Savings account which provides about 3.5% interest an annum I think. I have about £7k locked away if life fails. I have a few small online eBay businesses to provide me with a few extra £ to enjoy myself (clubbing, partying, alcohol, entertainment..etc). I further have about £1.25k invested in Zopa..see if I can make a small return from that? I mainly live my life through a interest-free overdraft. I don't want to try investing in shares/stocks as I've lost about £6k through doing that, and I am trying to minimise that loss through other ventures.

I don't know if I'm quite lucky or if I'm quite poor for a 19yo, but I've got this far through hardwork. No family support at all.

Thanks

Lokolo · 13 November 2011 at 3:00PM

Well you need to have aims, theres no point saving for the sake of saving.

Maybe a house deposit? Wedding?

Amit92 · 13 November 2011 at 3:03PM

Lokolo wrote: »

Well you need to have aims, theres no point saving for the sake of saving.

Maybe a house deposit? Wedding?

I agree with your point. The only reason I save is because my expenses are all covered which in a monetary value is about an additional £400-500 a month.

I would love to buy a 'buy to let property' or small business , but it requires much more capital than I have and further you could class me as a student, so mortgages would not be secured to someone such as myself.

Decluttering · 13 November 2011 at 3:10PM

I'd say that you're quite lucky for a 19 year old, rather entrepreneurial too! I think it's great that you have so much money to play around with and experience various investments with, well done.

I don't really have any suggestions right now, you seem to have covered the basics but if I think of any more I'll be back!

Amit92 · 13 November 2011 at 3:18PM

Decluttering wrote: »

I'd say that you're quite lucky for a 19 year old, rather entrepreneurial too! I think it's great that you have so much money to play around with and experience various investments with, well done.

I don't really have any suggestions right now, you seem to have covered the basics but if I think of any more I'll be back!

That's what happens when you find this website at an age of 13/14

...but on a serious note, I would love to get my foot onto the property ladder as now is the time to invest! Further the £6k I've lost, I've got a 5yr turnaround plan to recoup that through interest earned on savings, small low-risk investments and other ventures.

In my eyes I always try to recoup the losses I've made before I start to write down a profit in my books.

brightonman123 · 13 November 2011 at 3:24PM

got an ISA or whatever they call those tax-free saving things now..?

Also, you may need to set aside a percentage of ebay etc earnings, in case of any tax that may come due..

with a £££ buffer already sorted, enjoy the rest!

Amit92 · 13 November 2011 at 3:40PM

brightonman123 wrote: »

got an ISA or whatever they call those tax-free saving things now..?

Also, you may need to set aside a percentage of ebay etc earnings, in case of any tax that may come due..

with a £££ buffer already sorted, enjoy the rest!

Tax shouldn't be a problem as profits are at a lunch-money level. My ebay ventures usually only last about 3-6months before I take time to rest or move onto other products.

I think saving for a deposit on a property is ideal. I'm hoping next year I can invest in a cheap 3bedroom property as I have a loyal tenet who would pay me a guaranteed rent of about £500-600 a month, which would easily cover repayments on a 15-25year mortgage.

atush · 13 November 2011 at 5:05PM

The key will be, how long will you save the money for- if just a year or a few you need to stay in cash as you have been burned by individual share dealing (something I never suggest to newbies) or any share delaing for short periods.

ISAs are not much use if you aren't paying tax and your ebay earnings are well under your personal allowance. So the highest rate easy acess you can find, and a high rate regular saver (move the money to a savings acct when mature) would be the best.

Once you are working enough to pay tax, move to cash ISAs.

Masomnia · 13 November 2011 at 5:11PM

1. Wine
2. Women
3. Song
4. Travelling

If you have anything left then put that in a high interest savings account.

On the ISA thing, I do think it's worth opening an ISA even if you aren't a tax payer, because if you plan to become one in future, which you clearly do, then you'll have a nice big pot of money earning tax free interest which you've previously built up. If you don't use this year's allowance you lose it, and I think the benefit of having that earning tax free interest in future is worth forgoing a little interest now. But clearly there are different schools of thought on that one and it's up to you to decide what's best for you.

guitarman001 · 13 November 2011 at 5:13PM

I'm constantly baffled by the 18-24 year olds who join up and say they're saving £1k+. Used to think I was doing ok but I can see now that I really am not.

shaneshaneshane · 13 November 2011 at 5:29PM

guitarman001 wrote: »

I'm constantly baffled by the 18-24 year olds who join up and say they're saving £1k+. Used to think I was doing ok but I can see now that I really am not.

But then to save 1k a month if your living at home isn't too challenging providing your working...

you will find the majority fit into that bracket.. there are exceptions though!

Advice to a 19yo?

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