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  • FIRST POST
    • appletree89
    • By appletree89 11th Aug 18, 7:21 AM
    • 1Posts
    • 2Thanks
    appletree89
    I have £5000 savings at 35. Is my life over?
    • #1
    • 11th Aug 18, 7:21 AM
    I have £5000 savings at 35. Is my life over? 11th Aug 18 at 7:21 AM
    I don't have much of a social circle so I'm going to try the internet. I have no debt or financial issues, I rent, I have a stable job, and have £5000 in savings (roughly the same for my pension).

    Recently my plan has to start saving aggressively, but on asking around tentatively and looking online, it almost sounds like this is the end of the world. Apparently I should have at 9 or 10 times that by now, plus the pension, plus a completed mortgage, plus alternative property, plus vehicles, plus children who should now be completing their university degrees and so on. This is devastating to me, because I have nothing at all like that.

    Yesterday I thought by planning ahead and budgeting, I can easily double my reserves in 12 months and start looking at higher interest savings accounts. But seeing as I'm not going to be a multi-millionaire in 15-20 years should I just cut to the chase and jump off a bridge? I'm only half serious of course, by the time I'm 45 I could be looking at £50k if I never take holidays or buy anything. So what do you think? Keep "at it" and explore my limited financial choices, or are my real choices really whether or not to jump in front of a train against jumping off a building?
Page 1
    • aw77
    • By aw77 11th Aug 18, 7:40 AM
    • 11 Posts
    • 9 Thanks
    aw77
    • #2
    • 11th Aug 18, 7:40 AM
    • #2
    • 11th Aug 18, 7:40 AM
    I think your situation is probably more towards the average than things you might have read online about what you 'should' have right now. Many people (I think I read 15-20%) have credit card debts etc so are in a far worse position. Do a bit of research and if you can, start contributing to an employer contribution style pension as soon as possible
    • Alistair31
    • By Alistair31 11th Aug 18, 7:44 AM
    • 52 Posts
    • 41 Thanks
    Alistair31
    • #3
    • 11th Aug 18, 7:44 AM
    • #3
    • 11th Aug 18, 7:44 AM
    Alternatively, you have no ties or burdens (wife,kids,mortgage,debt, etc) and are free to do whatever you choose.

    Spread your wings and make the most of it. Whatever you do though, going forward, make sure to pay yourself first and you will already be doing a lot better than a lot of other people who do nothing and sail into old age with nothing.

    35 is not too late. Not at all.
    Last edited by Alistair31; 11-08-2018 at 7:46 AM.
    • adamh87
    • By adamh87 11th Aug 18, 8:30 AM
    • 49 Posts
    • 22 Thanks
    adamh87
    • #4
    • 11th Aug 18, 8:30 AM
    • #4
    • 11th Aug 18, 8:30 AM
    I often feel like this (am 34) but don't beat yourself up at all; often people with these 'things' (car/kids/house/wedding) have other 'things' to match (PCP payments, childcare bills, large mortgage, CC debts).

    Take the positives from your situation - you're debt free, have the potential to be mobile for new opportunities (hard to move for work if kids are in nursery and OH has a steady job!) I remember watching The Wright Stuff once and the host said he hadn't thought about a pension until his 40s and the other panellists were all nodding; you're already ahead of that! I expect they're all higher rate taxpayers, so to not have made pension contributions in their situation is loco.


    The other thing to consider is: what do you actually want from life? (another one I struggle with)

    Once you know that (ie house, kids, work abroad, make more money) you can set a budget and move forward. You say you're not going to be a millionaire in 10 years time, but you don't know that for sure. If it's your ambition, go for it!

    If it's the lack of a social circle, think about what you enjoy/enjoyed doing and look into that. There are websites like meet up, and make contact with old friends and family to start building relationships. Not always easy to do, but very rewarding once you have

    Good luck!
    • Brookside88
    • By Brookside88 11th Aug 18, 8:53 AM
    • 286 Posts
    • 376 Thanks
    Brookside88
    • #5
    • 11th Aug 18, 8:53 AM
    • #5
    • 11th Aug 18, 8:53 AM
    Don't panic. I'm 30, unmarried, a 2 year old, 35 years left on the mortgage, zero savings and nearly 18k unsecured debt. The chances of me having even 5k savings in 5 years are slim let alone 9-10 times that amount. And a 35 year old having a child graduating university would have to have given birth at 17 ish so the maths of having a mortgage paid off simply doesn't add up unless they got an amazing job or won the lottery.

    I'd kill to be debt free and 5k savings right now
    Barclaycard CC £5,912.12/£0___Virgin CC £5,536.81/£5,536.81___Zopa Loan £5,680.83/£4,906.17___Tesco CC £1,922.46/£1,772.46___MBNA CC £6,323.15/£5,696.73
    Total £19,838.56/£17,912.17 (9.7%)
    • FatherAbraham
    • By FatherAbraham 11th Aug 18, 9:59 AM
    • 903 Posts
    • 668 Thanks
    FatherAbraham
    • #6
    • 11th Aug 18, 9:59 AM
    • #6
    • 11th Aug 18, 9:59 AM
    I don't have much of a social circle so I'm going to try the internet. I have no debt or financial issues, I rent, I have a stable job, and have £5000 in savings (roughly the same for my pension).

    Recently my plan has to start saving aggressively, but on asking around tentatively and looking online, it almost sounds like this is the end of the world. Apparently I should have at 9 or 10 times that by now, plus the pension, plus a completed mortgage, plus alternative property, plus vehicles, plus children who should now be completing their university degrees and so on. This is devastating to me, because I have nothing at all like that.

    Yesterday I thought by planning ahead and budgeting, I can easily double my reserves in 12 months and start looking at higher interest savings accounts. But seeing as I'm not going to be a multi-millionaire in 15-20 years should I just cut to the chase and jump off a bridge? I'm only half serious of course, by the time I'm 45 I could be looking at £50k if I never take holidays or buy anything. So what do you think? Keep "at it" and explore my limited financial choices, or are my real choices really whether or not to jump in front of a train against jumping off a building?
    Originally posted by appletree89
    Don't jump off the building yet.

    By coincidence, I was just reading a report about UK households' wealth before the financial crisis of 2007 onwards, by the Institute for Fiscal Studies (google "The wealth and saving of UK families on the eve of the crisis").

    Even in those pre-"austerity" days, half of UK households had liquid wealth of less than one thousand pounds.

    You are well above average, and your plans to save more sound very positive.

    Congratulations!
    • dividendhero
    • By dividendhero 11th Aug 18, 10:17 AM
    • 274 Posts
    • 284 Thanks
    dividendhero
    • #7
    • 11th Aug 18, 10:17 AM
    • #7
    • 11th Aug 18, 10:17 AM
    Cheer up mate!!

    Unlike many of your age you're not in debt! You say you're planning to "save aggressively" this suggests you're not already doing so, therefore some room to improve that. Here are some tips

    Consider moving to a cheaper location, housing costs vary a lot more than wages.
    How about a second job or overtime and devote the extra income solely to savings.
    Cut back on some luxuries, do you really watch all those satellite channels?

    I know it's a cliche that's often falsely attributed to Einstein, but never under estimate the power of of compound interest...
    • xylophone
    • By xylophone 11th Aug 18, 10:23 AM
    • 26,899 Posts
    • 16,049 Thanks
    xylophone
    • #8
    • 11th Aug 18, 10:23 AM
    • #8
    • 11th Aug 18, 10:23 AM
    You are employed? What are the pension arrangements?

    Do you intend to buy a property at some point?

    Consider LISA?

    https://www.skipton.co.uk/savings/isas/cash-lifetime-isa
    • Alexland
    • By Alexland 11th Aug 18, 11:58 AM
    • 3,383 Posts
    • 2,717 Thanks
    Alexland
    • #9
    • 11th Aug 18, 11:58 AM
    • #9
    • 11th Aug 18, 11:58 AM
    I expect there are many in a similar position but it sounds like you are starting to seriously consider your financial aspirations and now need to build a reslistic plan to achieve them.

    At 35 you probably have circa 30 years of work ahead to apply yourself which is plenty of time to build substantial wealth if you focus your efforts.

    Alex
    • binaryuniverse
    • By binaryuniverse 11th Aug 18, 12:17 PM
    • 768 Posts
    • 482 Thanks
    binaryuniverse
    Absolutely not. It's getting harder and harder to find a stable footing in life, these days, with house/rent prices getting more and more absurd, whilst salaries remain fairly stagnant. Having £5000 to your name is nothing to be ashamed of, and gives you good starting point to kick on. Those 'targets' sound like lofty ideals that probably some small percentage of UK adults will actually achieve, if they want such a thing (I've never wanted kids, for example).

    I'm in the same age bracket, and I only just started putting away cash in the last couple of years, for a mortgage deposit. I also only really started paying a fair bit in to my pension at the start of this year. It helps I've had a nice change of career in to something that is well paid. And yes, at times I do feel like I've started a bit late... but starting late is always better than never starting at all. If you feel like this at 35, imagine how you'd feel at 65. Any by then it really could be too late to do anything about it.
    • A_T
    • By A_T 11th Aug 18, 1:28 PM
    • 537 Posts
    • 366 Thanks
    A_T
    Sounds to me like your probably in a better position than most your age.

    Don't believe all the lifestyle crap you read in the Mail, etc. about how you should live your life and how much material wealth you should have by now. You're doing fine just keep saving and investing.

    And most of all enjoy your youth the way you want to it's your life not anyone else's.
    • ruperts
    • By ruperts 11th Aug 18, 1:56 PM
    • 1,002 Posts
    • 1,663 Thanks
    ruperts
    If you're able to save £5k "easily" then how much can you save if you work a bit harder at it while keeping an acceptable lifestyle?

    Even £5k well invested compounded over 30 years will turn into well over £300k in today's money assuming somewhere near average historical returns.

    Renting is an issue for you as it is for many of our generation, what are your prospects for getting on the housing ladder?
    • kidmugsy
    • By kidmugsy 11th Aug 18, 2:25 PM
    • 11,770 Posts
    • 8,285 Thanks
    kidmugsy
    zero savings and nearly 18k unsecured debt ...

    I'd kill to be debt free and 5k savings right now
    Originally posted by Brookside88
    I'm sure that we can all think of someone we'd pay you £23k to kill.
    Free the dunston one next time too.
    • grahamgoo
    • By grahamgoo 11th Aug 18, 3:03 PM
    • 292 Posts
    • 154 Thanks
    grahamgoo
    I was late 30's before I even started my first mortgage!
    • dawyldthing
    • By dawyldthing 11th Aug 18, 3:05 PM
    • 3,061 Posts
    • 3,030 Thanks
    dawyldthing
    I'm in my early 30s, have less pension than you but have a little bit saved up. You don't have to live like the pope, but make your money work for you. From shopping round for bills to getting reasonable interest it's worth doing. They say to have at least 6 months bills behind you so try and set a plan for that.

    Life's not a race mind. If I had saved instead of travelling I'd probably have a lot of money sat there, but give me the memories any day. We're not taking it with us and unless I have kids there's no one to leave it to either
    roll on end of April 2019 *13 done* = *27 to go*
    • bluefukurou
    • By bluefukurou 11th Aug 18, 7:46 PM
    • 69 Posts
    • 17 Thanks
    bluefukurou
    Apparently I should have at 9 or 10 times that by now, plus the pension, plus a completed mortgage, plus alternative property, plus vehicles, plus children who should now be completing their university degrees and so on. This is devastating to me, because I have nothing at all like that.
    Originally posted by appletree89
    You usually complete university around the age of 21, so I think you were wise not to have your first kid at 14.

    I was in a similar position to you in my mid 30s and I didnít even have a stable job. Now fast approaching my mid 40s, I am doing just fine. I was also single and with no ties, so had the freedom to just get things done. It can be hard at first and you may need to take opportunities that are not all that pleasant, ie get out of your comfort zone and take a new job, maybe in another location, that you don't particularly enjoy. It may be a grind, but if youíve got a plan, you have the comfort of knowing youíre doing it for a purpose. Have you looked into retraining or taking a job in a field that you may have never considered before? Within a couple of years you could get the skills and qualifications to more than catch up and overtake others that you view as being way ahead of you now.

    35 is still very young and the most important thing is that youíre already aware of your situation. Too many people only realise when itís too late. Also, donít forget that thereís more to life than money: if you have your health, youíre already rich.

    Remember the following wise words because they could very well apply to you:

    Most people overestimate what they can do in one year and underestimate what they can do in ten years
    ó Bill Gates
    • dividendhero
    • By dividendhero 11th Aug 18, 7:55 PM
    • 274 Posts
    • 284 Thanks
    dividendhero
    You usually complete university around the age of 21,
    Originally posted by bluefukurou
    That's one area where things have got much tougher. When I went to Uni in the 80's it was pretty hard to get a place - but you paid no tuition fees, received a grant from your local council, where able to sign on the dole in the summer. Pretty much nobody left with any significant debt and "proper" graduate jobs where easy to find..
    • Terry Towelling
    • By Terry Towelling 11th Aug 18, 9:12 PM
    • 644 Posts
    • 541 Thanks
    Terry Towelling
    @appletree89 you paint a very depressing picture of someone in a really quite favourable financial position. Is it really your finances that are getting to you?

    The idea that life has to follow a specific pattern like marriage, kids, cars, alternative properties and tens of thousands saved is rooted in the fantasy world that is lifestyle TV and fashionable glossy magazines. OK, some are lucky enough to have the wealth early on but, generally speaking, it isn't like that. You need to live your life, not somebody else's and not according to some media-invented fantasy.

    Does that sound harsh? I haven't written it with harshness in mind, rather I've written it in annoyance at what the media portrays as a normal way of living.

    At age 35 I had about £30K of unsecured debt and a mortgage (albeit relatively small but certainly not completed). Alternative property? - in my dreams! I wasn't unhappy but I realised I had to do something about my debt - so I was way behind you on that score. I set myself a target to be in the black within 10 years. Luckily my income improved (as yours will) and I got there. It then took several more years just to get to where you are.

    If saving £5K per year means having no life then try saving £4K per year - or £3K - and see how you get on. Don't make yourself a slave to saving and please don't worry - it's not too late.

    If I'm honest it sounds more like you need something to give you a lift and that money isn't really the issue. Is there anything that you really enjoy doing, or something that you think you might like to try? It's about finding a way to bring joy into your life - not money.

    You shouldn't hold up other people's artificial smiley facebook facades or imaginary media ideals as beacons of happiness or evidence of the wonderful time they pretend to be having.

    Have you opened up to anyone about the way you feel? And, please don't speak of throwing yourself in front of a train (however metaphorical you may have meant it) because a relative of mine did just that. It is a terrible thing for others to have to deal with - not least the train driver.
    • Apodemus
    • By Apodemus 12th Aug 18, 7:28 AM
    • 1,083 Posts
    • 890 Thanks
    Apodemus
    Appletree89 doesnít seem to have been back since he/she first posted here, so I hope they have not yet jumped off the bridge!

    Lots of good comments above. I would just add that it would be worth spending some time on the ďDebt-free WannabeĒ section of this board or on the ďMr Money MustacheĒ forum to see some of the radical approaches that people take to sort out their finances and build some capital. Plenty of people on both who are doing amazing things to get themselves sorted for the future.

    Good Luck!

    No, thatís not right...itís not down to luck, it will be tough, itíll be hard work. But youíve made a good start, realised the problem and now just need to focus on moving things up a gear.
    • atush
    • By atush 12th Aug 18, 11:52 AM
    • 17,249 Posts
    • 10,818 Thanks
    atush
    No life isnt over for you.

    Sure, you are little behind. But others your age might have 0 savings and 30K in debt. So it could be worse.

    One thing is certain, unless you pul the plug out and do something, you wont retire early and wont own your own home.

    So stop whinging and get saving. Slim down your outgoings and out half the money saved into your pension and the other half in growing your 5K.
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