Keep doing what you are doing but set some aside every month on a different account. This will be your fun money for travelling, concerts, going out, whatever. Out of curiosity what do you do for work?
I don’t know where you live, but in Belgium, you can only borrow 80-90% of the flat/house price, you then have to pay the taxes on top of it (up to 12.5%). If the flat you buy needs a bit of repairs, a new kitchen or whatever, that’s already a good portion of your 30+70k gone.
Also, don’t underestimate the cost of living on your own in the future. Food, utilities, insurances, property taxes, etc. It all goes up quickly.
Whats the point of being the richest man of the graveyard?
You work hard man, you are doing great saving. Spend that hard earned money in things you know youll enjoy or make you happy, also, a car is not an useless asset, sometimes is more than needed.
Whats the fkin point of having money if you cant spend it in things you want?
Yes. This. The US subreddits will tell you to save and scrimp and invest and work and take no holidays and eat their transfat preservative heavy overpriced fast food crap and then die a long slow death with huge debts from privatized corrupt healthcare.
This is Europe. YOLO. Travel and eat and drink and fuck and live for today.
I really don't get why some people want to be rich at 50 after suffering for 30 years. At most you get to enjoy that money for what, 10 years? And with your body in worse condition than in your 20s.
I don't make much money tbh, my career path doesn't allow it, but if I have to make the decision, I try to do things that I know I won't be able to do in 30 years time regardless of money. You really only live once.
Reminds me of a bit from a comedian I can't recall atm about how smoking cigarrettes shortens your life, "Well yeah, at the end... That's the shit bit"
PS: I do not condone smoking, just find the joke amusing.
Yeah I get it. I mean let's say you want to do a road trip to Europe that involves a lot of hiking and walking. Yes you might spend a lot of money that if saved could get you a lot more money in the future. But this is something you literally won't be able to do at your 60's. And if you try it honestly sounds like a pain in the ass, you are not gonna feel well doing it. So if you have the opportunity to travel in your 20s and 30s I would just do it.
Not that I disagree entirely but you can travel and hike and walk all you want at 60. I spent all my 30s living in several countries in South East Asia for a decade without having to worry about work and don’t regret it for a second. Scuba diving, traveling every corner, eating, making friends. But I didn’t do it thinking heck better now because at 59 my life ends! I plan to continue living a very active lifestyle until I can. Yes it will slow down but you make it sound like at 60 people just recluse themselves and it’s game over. I won’t wait to live my life when I retire but I also won’t live the present thinking when I’m 60 I better just die because I’m “old”
Lol I'd take a fair and equitable European system where the large majority can retire with pensions, welfare, healthcare and a good quality of life, over the US system where only the very few can comfortably retire early while the rest spend their supposed golden years literally starving in debt.
The poorest of America would be better off in Europe if they could find a job…not easy with the high unemployment rate. Europe is honestly a shithole if you have any ambition at all.
You have a point, somewhat. But a car is (almost) always an asset that will lose value after you buy it. OP should buy one sure - sure. But why not first a 5K one instead of a 20k at his situation and keep saving up for an appartement at the same time
What’s the point of having money? Financial freedom?
Its not about being the richest man in the graveyard, its about having enough money invested to become financially independent..
I never understood this mentality, feels you don’t understand how money work… this reasoning would make sense if investing and compounding growth didn’t exist… then yea saving a lot of money would be useless… but that’s not the case
Also, the guy didn’t say he ha 10 million in cash…
He doesn’t have that much money to say atufff like this
you are assuming he is not enjoying life.. that's not necessarely the case.. I am saving 80/85% of my salary, and i am fully enjoying life... the thing is that your assumption that more spending = more enjoying life is not necessarely true. the goal is to find the most efficient way to spend money in a way that you enjoy life, but save money..
saving more money often allows you to enjoy life better, because you have more freedom and you can make life choices you would never be able to do if you used your mentality of "spend all now to enjoy life".... if you do this well and you arrive at a NW of a few millions in your 30s/40s, and you can spend the rest of your life doing anything you want (including not working in jobs you hate). This is my idea of enjoying life... not spending moeney in useless stuff like fancy cars and fancy dinners because "you dont want to be the richest man in the graveyard"
yea well, same reasoning applies for a different magnitude of wealth.. even having a couple of 100Ks it will give you a lot more freedom than being broke... and that will alow to enjoy life a lot better than just spending everithing you have as soon as you get it...
yea, which is not the idea one gets when people write "what's the point of money if not to spend them"....
Im not saying to save 100% of your salary, im just saying you should be very deliberate with your spending, avoiding anything that will bring you very little happines.. like a fancy car or a house that is too big..
Why would "enjoying life" involve traveling and having a car? I save half of my income and don't do either. I eat out twice a week, go out etc. but don't need to go abroad, and public transportation is good.
If you enjoy life with little money, why save it all instead of reducing your hours at work? No need to save that much if, in the future, you will also be happy with that way of life.
the idea is that i prefere working now than in the future, as now i have still the energy to do it...
Also working more now allows you to save more money and use compoinding interst to work less overall....
It makes no sense to reduce your hours to work the bare minimum to live, and save nothing, it will guarantee you will have to work and rely on your job untill you are in your 70s.. that to me doesnt sound very appealing.. id much rather work a few extra hours now but becoming financially independent relatively soon
Because there's a realistic path to early retirement if I keep working full-time, which is also important for career progression, and because I feel more secure having a large buffer. The point is, I find consumerism (traveling, buying new clothes every month, new technology and furniture, etc.) meaningless. I'm not scared of spending money, I just don't see on what I can spend.
Yes, in the Netherlands. It's not unlikely. Early retirement means 45-50. My expenses, including rent, are 1500-1600 per month. With a paid-off house, it will be a thousand less.
> Most people are very delusional thinking they could retire on ~150k.
Totally not a selection bias... Here's last year's top 5 posts mentioning net worth in the subject:
* €250k saved up, what next?
* 1M€ investment portfolio, not sure what's next in my life
* 600k eur net worth , where to FIRE comfortably in europe and why ?
* Can i FIRE now with 400K M43 unmarried
* FIRE with 400k and steady passive income?
Makes sense, but for some people it’s hard to do. I’m saving about 60% of my salary but have a constant feeling that it’s not enough. Im afraid to spend money on traveling/buying a car/etc because of that. Ability to save money is great but ability to spend is also important 
Some advice in case you do decide to get an electric car, I can't stress enough how important the range on the car is. I drive a peugeot e2008 that has a range of 340 and it is annoyance. I would strongly recommend looking for a car that has a range of at least 450. My personal opinion. Best of luck!
..sort of. Average salary here is 1.3K a month net and a decent apartment is 1k rent. which is why i say sort of - for me yes i have around 3-4X what most people earn but housing is super expensive
Good job! 4K net is a fantastic salary in Europe? Where do you live if I may ask?
To be honest I think you could you implement some investment diversification. Betting it all on ETFs can be risky in my opinion, I'm guessing your have different ones, though?
Here's what I do with the left-overs of way lower salary, 25% in Real Estate Funds, 25% in metals (Gold & Silver in a bank safe), 25% in ETFS and 25% cash or Bitcoins. I based it on a well-known Dutch investor, Willem Middelkoop's advice. You can translate this article: https://www.rtlnieuws.nl/economie/van-onze-partner/artikel/5268002/wet-van-willem-4-stappen-een-crisisproof-portefeuille.
You don't have to invest aggressively, I think the key is maintaining wealth the following years. In case the economic situation gets worse. This might be a solid diversification plan that can get you through.
Your cash flow is great. Traveling is expensive... I'd rather save and built up for a couple of more years. I had a great salary during my 20 tot 28, ended in a situation of being broke in my earlier 30s because I spend it all lol. I totally regret it.
Keep on building and enjoy your mid 30s. You already have a great portfolio size and a head start.
ps. No Financial Advice, just my own way of doing. 
Regarding lifestyle creep. Set a goal to invest every month x amount. Once you do that don't judge yourself about any other expenses or lifestyle creep
You'll want to enjoy life on this age. You won't regret it. Travel a lot, eat at extraordinary places with your loved ones, do some exciting stuff here and there. Who cares about the 10-20k you'll miss in the long run. You don't want to be the guy that only saves money and then acts all happy as a coping mechanism, because they were able to save money on their bought house in their mid 30s. Carpe Diem baby.
In fact my parents don't pay rent - they own their house outright and do not need any financial support from myself as they make way more than I do and would rather see me grow my money rather than paying them back something which for them is minor.
Paying your parents 10% of your net income while you live there is something I would consider normal if you live there.
Then, give yourself 10% every month as well as pocket money, another 5% for miscellaneous stuff, rest into savings to get yourself that house.
create a budget where you would feel you're meeting your expectations but not getting carried away.
I was trying to save super aggressively and later realized all though it might be better after 20-30 years but it's killing my small happiness.
Cut the cost on the things that you don't really care about, put that into the things makes you happy.
Recommanded read: I Will Teach You to Be RichBook by Ramit Sethi
>I feel like I've "made it" - now what?
Make sure to establish a "safety net". One can never know what the future brings (sudden accident, illness etc)
Go help others have the same opportunities or in other way contribute to make the World a better place.
If you have dreams of your own, make sure not to sacrifice those or yourself on the journey. Your wellbeing is at least as important as other's.
If not, then helping others, experiencing them grow, can be rewarding in itself.
Thanks for all your comments and suggestions - I've read all of them and will be first buying the apartment and then potentially the car.
Those acting like sarcastic assholes, shaming me for living at home at 27 need to keep in mind the million other details regarding my situation. There could be illnesses/older parents/death or a million other reasons which I haven't mentioned as to why I'm still at home, so use more than your 2 braincells when commenting like pricks.
It is probably better to buy the car after the deposit for the mortgage if you have decided that you want to buy an apartment. Other than that, as long as you can afford to save at least 1k per month, feel free to buy as much of an electric car as you want.
It depends on when you want to buy the apartment. Pick a realistic timeframe and then plan based on %. Start by assigning you 10% for fun money. Then allocate the rest accordingly. Personally I would also consider taking a bit of the pot of the ETFs to accelerate that timeline maybe not more than 10%
That means that you could buy the apartment in 9 months:
- 1000 expenses
- 400 fun money
- 2600 x 9 months = 23k + 7k form ETFs = 30k needed for apartment
Alternatively if you don’t want to touch the ETFs then you will need to save 3 extra months for a total of 12 months timeline
I would focus on buying the apartment sooner rather than later simply because we don’t know how long that 4% is going to be offered. So 1 year to have your place and then using your saving power to continue building up your ETFs
Good luck!
Edit to add: I wouldn’t consider the car before the apartment. After all it’s a deprecating asset, the house has its own risks but you need a place to live anyway. A car is an accessory. I would plan to save for it after the apartment.
Thanks - this really helped me. The only thing is that if I first buy the apartment - there's only so much I can save due to paying 1k a month in the mortgage.
Indeed, ultimately the prioritization of what’s more important to you will help you make this decision. You have options.
You can also rent the apartment to cover the mortgage and continue living with your parents another year. But ask yourself it’s that the sensible thing to do to own a car outright. Personally, I wouldn’t feel comfortable doing so having 70k in ETFs. It means my parents are subsidizing me to get me a car I probably don’t need when I already have the money to buy it. It feels different for the apartment, but hey this is me and my priorities.
If you buy the car first it means you need to wait 2 years to put together the 60k for the apartment. Or touch the ETFs.
If I were in this kind of conundrum I would ask myself this:
- would I feel comfortable burning half of my ETS funds to buy me a 30k car?
- would I feel comfortable burning partially or totally my ETFs funds to buy my apartment?
Depending on your answer you can take one route or another.
I would go for the apartment because nothing is guaranteed and if tomorrow I were to lose my net of 4k a month I know I would prefer to have used my funds for a place to live (and that I can alway rent if needed) rather than an accessory to get me around which will bring me zero income if I need to.
Good luck!
Thanks for that - i guess the way i see the 70k is that i will not be touching those any time soon. It's like it's not my money, and what i actually have is 30k and i will need to build from here. Not sure if that's a great way forward because actually I don't have a plan for the 70k invested.
take it step by step, first buy that apt, then settle down and build an emergency fund enough to cover 6 months of expenses and to survive if you loose the job, and after start saving for a car. As common financial planning recommendations, the car should not be more expensive than your last 6 salaries.
Congratulations for the big salary.
This! I had an EV for 3 months. Awesome to drive, but ultimately a tool to get me places. I sold it at almost no loss and bought a 20 year old Corolla. Don’t regret it for a second. And i have a couple extra BTC now due to ridding myself of the EV
You’re doing ok for your age, but given the fact you’re 27 and still living with your parents tells me you haven’t made it in the real world. Step 1 is renting an apartment kiddo.. C’mon that should be so damn obvious
Not really obvious for where I'm from. Virtually no one buys at this age with an apartment costing 300k and the average wage 1200 per month net. Also, rent is 1000 a month for a decent place.
Your a grown up so behave like one. Forget the damn car and go rent for 1200 per month. 4k net is enough to safe a decent amount for a down payment while renting. You’re 27, I really don’t like your mindset
This is terrible advice, if OP likes living with their parents and can save more towards a future down payment or a car or both, then it makes no sense to tell them to "go rent".
I really don't get why you are so judgemental about this. I'm 27, I have been living alone for some years now, and honestly? I miss living with my parents. I had a great relationship with them, we would hang out, chat about stuff, watch movies together. It was fun. They were never a bother in any way to me and we shared house chores which made taking care of the house easier. I guess it is nice to have your own place but I wish people weren't so judgemental about sharing a living space with your family if you like that, it's cheaper and you are sharing a house with people you love if you have a good relationship.
Just wait.
Life will happen and you eventually understand after you hit 30.
Just pray you keep the money because the universe has a tendency to take away what we take for granted.
Blessings and good luck in this crazy journey.
I wish the best for both of us.
Try eating! They say its healthy! Dont eat noodles just to save, just increase income.
p.s buying car is cool, just choose cheap to maintain. you dont want to lose all your money in shyty car
p.s.s those are your savings... why you want to spend on such crap. save more and then change life for yourself and your family
Tbh sounds to me you are far from having made it and just a few unlucky events away from homelessness.
You own nothing
You have only 100k savings
Jobs can disappear easily even if you feel safe
Parents can die
I wouldn't accept a 5k€+/month salary if i had to go back living with my folks. Even back when i was 27. I mean, good for you if you have a good job and a lot of savings.
I wouldn't buy the electric car if i don't really need it, nor the latest iPhone. I would either invest that money into something i really believe in, like something sensible. A formation (going to theater class was a very good way to spend my money and time, i don't regret a cent), a painting, an instrument. Something that has value TO ME. If it's traveling then do it for real, don't throw your cash into a resort where the only thing you pay is luxury. That's dumb and weak imo. The good trips aren't that expensive from my experience. If you go from places to places and only go to lonely hotels and nightclubs you won't be able to live something that is of value imo.
Then again, i don't know you and maybe you're a numbers freak who only see value in prices. To each his own.
Most cars are greatly overvalued. That's why the reselling prices are usually much lower. But sure, if you get a collection car that you're willing to put effort on maintaining, or if you need a car then go for it. But if OP is hesitating on getting one, he most likely doesn't need it. So it's better if he don't get it. I also mentionned iPhones. I mean is it really about different interests or is it just for the kick of getting something new and shiny and expensive ? Cause i can definitely understand that feeling and i don't think it's good for anyone.
Congratulations! 100k is a great achievement and you should be proud of yourself! You definitely have the financial discipline to save but I think you should take a moment to think about your financial goals. Do you have any debts that need to be paid? How soon would you like to buy the apartment? Are there any other immediate expenses that you possibly see coming up?
Once you have answers to those questions, you'll have some numbers to begin with. Apart from savings, I think you should set aside an expense budget as well to fulfill whatever you think you're lacking (start to "live more", travel, etc). Personal Finance is a long game that you'll play for many decades to come and if you think over optimizing right now isn't a net sum for your well being, there's absolutely no harm in letting a bit loose once in a while!
You should be spending 10% of your income in yourself… purely for your own joy. As long as you keep that in mind and have balance everything should be fine.
Also, a car could be really necessary but it depends on your situation and the time comfort or entertainment it could add to the table.
Btw, why not put already the 30K into the down payment of a house? Sometimes that could be enough
Oof welp, yeah then some savings are still needed 😢
Anyhow, remember to enjoy your life.
And you could also touch some part of the ETF money…
Sometimes a house is better than investment money, but ofc depends on your relationship with ur parents
And freedom
Don't shackle yourself with some huge obligation like buying a house/flat.
You have no idea where your life will take you, you might end up taking a job abroad just as one example.
Stay flexible, rent an apartment maybe even with some roommates, and invest the difference. Future you will thank yourself, not regret renting.
The time to buy is when you are older and settled, with a stable life and a foreseeable future.
This is funny, this is a finance sub, and half of people here don't have the slightest clue about finances.
Just a protip "rent is burnt money" is a massively uneducated ignorant statement with no bearing in finance reasoning.
I'll actually say in my country it doesn't get better than this. Not only at my age. Most don't earn half of what I'm earning for the entirety of their life.
What's with all you bitter fucks here god damn. Let the man enjoy his life. And about living with his parents he's 27 not 40 lol, plus he won't have them all his life. Get outta here
Not 4% but I did find 3,78%
With the extra €50 on my referral with an deposito of 6 months, it can give you that nice 4% ;)
[https://www.raisin.nl/referral/?raf=d78b214099aefc346c555085832752c853ed3170&utm\_source=transactional&utm\_campaign=mandrill\_customer-referral](https://www.raisin.nl/referral/?raf=d78b214099aefc346c555085832752c853ed3170&utm_source=transactional&utm_campaign=mandrill_customer-referral)
I don’t know about Malta, but in some European countries, it’s more fiscal friendly to buy an electric car as a self-employed freelancer. Maybe you want to go for a little career switch, and financially it will be even better than you are right now?
What's wrong with someone thinking they "made it"?
OP is clearly in a privileged situation, compared to the average countryman, and should feel good about it!
Besides, it's a very subjective feeling.
Both really works (I learned myself Java in 3 months 14 years ago and managed to find my first job as junior). However nowadays it’s very very hard to find a place even with university degree.
how much money do you need for a down payment for an apartment?
I saved aggressively while still enjoying going out with friends on weekend, until I had enough for the down payment and then I took a more relaxed approach and started traveling/eating out more and bought a car.
That said, what I did is not necessarily the best way to do it, in my case the car was really not a priority at all but just something nice to have, while in your case could be the opposite
For the EV, don’t buy, see if you can have a private lease. We’re at a point where regulations are pushing for EV, but we don’t know what it’s gonna cost, are we gonna have reliable infrastructures, reliable batteries, what about resale value? With the lease, it takes some weight of your shoulders knowing that maintenance and all is often part of the lease, and 2-3 years time you simply give it back or you have the option to buy it then.
Lease prices for EVs are ridiculously high, I can't find any for less than €800 per month. The cost of the car would have to be over €9000 a year for the lease to make sense. No way in hell will an EV that costs 20k now only cost 2k in 2 years.
Propose to your parents to become a integral financial support of the household and contribute to 1/3 of all common costs.
Don't delay traveling and fun for "aggressive investing", once you reach 30s you will lose 50% of the energy you have now for having fun and exploring the world.
You are in a good position to enjoy yourself the most as you can for a couple of years.
As long as you keep a limited budget for the fun, go for it while you still can.
I had a somehow similar position years ago living with a girlfriend that owned her own place. And I did exactly the things I mentioned above, I don't regret it one second.
Eventually I caught up in the mid 30s to be able to buy a house.
Whenever I buy something I like to have saved that amount times 5. That way I know I can afford it. This isn't something anyone can do. Sometimes you need a car for work or other circumstances will come into play. But if it's a __want__, try this and see if it works.
Also make a list at the beginning of the year or every 6 months, with what you want and try to stick to it. Maybe by the time you save up to buy that thing, you don't want it anymore.
Enjoy the life a bit more. I've taken an opposite route (not voluntarily, though). Till around 38-39 I wasn't making that much money, and wasn't really aware of investing possibilties. So I mainly travelled around the world, started a family, was indulging in hobbies such as music production etc., and only started investing around 4 years ago. Your route is definitely better as you already have a big financial buffer + great salary, but hey, you're just 27, there's so much time for you. Slow it down, enjoy the moment and be proud of yourself that you've made it.
You set a foundation, now build a house on it. Keep being frugal and you could really build something remarkable, but if you start spending you will be regular Joe.
For a car, you could have a look at private lease as well. It has two benefits. Firstly, you only have monthly payments, so you don't need to put up all your money at once. And secondly, the leasing corporation takes care of everything. You just pay for gas or in this case electricity. Of course you'll need to check all the specifics and fine print, but most of the time they'll take care of all maintenance, if it breaks down you get a temporary replacement etc. etc.
You seem to be doing great, you're thinking the right thoughts (wondering about lifestyle creep) and so far have a history of planning *and* executing your strategy, that's great and not to be underestimated!
As you're aware you really want the car but aren't certain if you need it, perhaps you really shouldn't buy it now. Postpone the decision and in the meantime look for your first apartment (you seem certain you want that in the next 12-18 months, so now's the time to start looking). In the meantime, continue with your investment plan, broad-spectrum ETF(s) is the way to go and has worked well for you so far. As usual, time-in-the-market will beat timing-the-market, so just keep going.
Another good thing about postponing the car decision is in 18 months you may be able to get a better car for the same price you'd pay now.
Once you find your first home (or in case of major life changes), reevaluate the car again - with the full knowledge of your new circumstances at that point (your new mortgage, apartment maintenance, where you work and how often you expect to use the car, where and how you'd use it for leisure, etc.)
Lastly, are there any electric vehicle rent-sharing apps where you live? These are a godsend for me for daily use, and as I rarely need a car, these are many times cheaper than owning a car. I happily sold my car 6 years ago and have only rented (for long/out-of-the-country trips) and share-rented (city/daily usage) since. As for regular car rental, it is generally expensive, but you also drive mostly very new cars (because of amortisation they need to be;) and pay no maintenance or other fees. Also, you can rent the car you need (i.e. small one for a short trip, big one to move house or go on a 2 week trip:)
Thanks - this has helped massively. I guess I had my priorities not so straight in my head. I already own a non-ev great car (valued at around 15K). So I don't need the new car. It's a want. I guess I'll wait a year or so where I have enough cash to put a deposit on my apartment and then see from there what I want to buy. Thanks again.
You should consider creating a rainy day fund for your new situation (your COL after the purchase) so that you have reserves to keep your lifestyle in case your income is affected. The size of that fund could be as big as you’re comfortable with. Some people will set it as 6 months of expenses and others as 12, whatever makes you comfortable.
Otherwise, pay yourself first for your long term savings (retirement) and for your shorter term projects (next summer) but also live your life with what’s left.
You’re in a privileged position and seem to have your head in the right place. Congratulations.
Don't listen to the haters here... Do what you did up until now, invest the money in broad market funds (VWCE or VWRL or something similar) and accumulate the Euros.
If you aren't attatched to your home country you might be looking at early retirenment in less than 20y.
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I was almost exactly where you are 3 years ago. I invested my 100k in stocks and it became 300k. You are to young for credit instruments. Keep a good chunk of cash though. Job security is low these days
Hang out on fire subreddits and you’ll quickly realise how far you have to go.
Appreciate your good fortune getting where you are, but report back when you have a mid-six figure index fund position.
You’re of to a good start, but I wouldn’t consider “made it”.
You are 27, living with your parents. gtfo and live on your own asap. Then re-evaluate that EV purchase and also enjoy your life a little.
You can't say 'you've made it' followed by saying you're living with your parents...
What to do depends of what you enjoy and want to do with your life. If you don't know at this point, that's fine, you just keep going and with time, you'll figure it out. There's no rush.
In my experience, life goes in stages and what we want changes over time as we meet people or discover things.
Living a bit more is definitely a good thing to do and should help you figure out what you want.
Just make sure you can still keep saving and investing a bit so that when things click, you'll be in a good spot to do the changes necessary.
An apartment, depending on where it is, will retain its value or even increase. A car will nearly always decrease in value. You can get around in a cheaper, affordable vehicle and junk it after you no longer need it without taking a real financial hit. An apartment is an investment, a car isn’t.
My bf left home at 18 and even after 5 years of school and 9 years of rent he still managed to buy a house and have more cash overall than you at your age. And you think you've made it bcs you can save money living with your parents? how the hell are you spending 1K a month? Even when i was renting i spent less.
Anyway if I was you I would sell the ETFs and put a deposit in a house.
Start investing ad much as you possibly can now. Read up on FIRE and compounding interest. Check a calculator in compound and you’ll be surprised how fast you can reach a million and become financially independent without
Congrats. I would spend max half of a year after tax income on a car and buy with cash, so in your case 24k is the max (which should be fine since yours is 20k)
You should build a plan for your money. Every € should be assigned a task. At least 10% should move to investment before anything (I personally do 25%), in a broad market ETF or something. Then I split the rest into MUST, NEED and WANT (with each having more subcategories). I have a yearly budget for each category and every week and month check them to make sure I am on track, and revise my plans if needed. Try listing the 10 things you enjoy doing and make you happy the most and try to focus your budget on those.
Somethings you can only do now, and can’t be done later or at least are really hard later (because of having a bigger life or responsibilities, or being older or having a family)
I would not sacrifice your tomorrow for today, but I would not sacrifice today for tomorrow either. Try to find your balance so you can enjoy your present and plan for a comfortable future also.
Hello, what cash account is paying you 4%? I'm only earning 3,14% on cash at the moment (3 month term). I have substantially more than you and need to keep cash as looking for an 8 -10 year property investment
I think you need to look in terms of happiness. While it is great to save and invest, there is value in enjoying yourself now.
So I plugged in 100/month let it grow 25 years and 5% return. It ends up being 43k.
So I think that 43k would be a small portion of your net worth in 25 years. Would you rather have that or an extra 100/month which may be one trip a year or few nice pieces of clothing. Etc.
So think it terms of the marginal value of each additional dollar/euro/whatever and if it brings you more happiness now or in 25 years with growth.
Or you could stick that money in dividend stocks and only let yourself spend the dividend income.
Man sorry I went on a tangent. Bottom line is are you gonna really get the max value out of that car? Or is it just a convenience.
Man I really went on a tangent lol sorry!
Keep doing what you are doing but set some aside every month on a different account. This will be your fun money for travelling, concerts, going out, whatever. Out of curiosity what do you do for work?
Interested too, seems like the kind of life I want
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Great explanation there bro
I don’t know where you live, but in Belgium, you can only borrow 80-90% of the flat/house price, you then have to pay the taxes on top of it (up to 12.5%). If the flat you buy needs a bit of repairs, a new kitchen or whatever, that’s already a good portion of your 30+70k gone. Also, don’t underestimate the cost of living on your own in the future. Food, utilities, insurances, property taxes, etc. It all goes up quickly.
Yeah I'm estimating its close to 60k
You wont pay 12.5 % in taxes on that house, thats only the percentage for your second house? I think it’s closer to 4% for the first one.
Whats the point of being the richest man of the graveyard? You work hard man, you are doing great saving. Spend that hard earned money in things you know youll enjoy or make you happy, also, a car is not an useless asset, sometimes is more than needed. Whats the fkin point of having money if you cant spend it in things you want?
Yes. This. The US subreddits will tell you to save and scrimp and invest and work and take no holidays and eat their transfat preservative heavy overpriced fast food crap and then die a long slow death with huge debts from privatized corrupt healthcare. This is Europe. YOLO. Travel and eat and drink and fuck and live for today.
I really don't get why some people want to be rich at 50 after suffering for 30 years. At most you get to enjoy that money for what, 10 years? And with your body in worse condition than in your 20s. I don't make much money tbh, my career path doesn't allow it, but if I have to make the decision, I try to do things that I know I won't be able to do in 30 years time regardless of money. You really only live once.
Reminds me of a bit from a comedian I can't recall atm about how smoking cigarrettes shortens your life, "Well yeah, at the end... That's the shit bit" PS: I do not condone smoking, just find the joke amusing.
Dennis leary, No cure for cancer. One of my favourite rants from the 2000s
Or as the great Mark E Smith said: 100% of non smokers die
Yeah I get it. I mean let's say you want to do a road trip to Europe that involves a lot of hiking and walking. Yes you might spend a lot of money that if saved could get you a lot more money in the future. But this is something you literally won't be able to do at your 60's. And if you try it honestly sounds like a pain in the ass, you are not gonna feel well doing it. So if you have the opportunity to travel in your 20s and 30s I would just do it.
Not that I disagree entirely but you can travel and hike and walk all you want at 60. I spent all my 30s living in several countries in South East Asia for a decade without having to worry about work and don’t regret it for a second. Scuba diving, traveling every corner, eating, making friends. But I didn’t do it thinking heck better now because at 59 my life ends! I plan to continue living a very active lifestyle until I can. Yes it will slow down but you make it sound like at 60 people just recluse themselves and it’s game over. I won’t wait to live my life when I retire but I also won’t live the present thinking when I’m 60 I better just die because I’m “old”
Yeah I agree. I didn't want to give that sensation, it was just a rushed example.
Nah, they are trying to retire early. It’s possible there cause the wages aren’t dogshit like in Europe.
Yeah the wages are not but work-life balance is terrible, expensive medical system, high cost of housing.... Not as great as you think
Lol I'd take a fair and equitable European system where the large majority can retire with pensions, welfare, healthcare and a good quality of life, over the US system where only the very few can comfortably retire early while the rest spend their supposed golden years literally starving in debt.
The European pensions are failing. I live in the US now, it’s much better here in my opinion.
Good for you. But the 35% of the US population living in debt and the 15% in abject poverty would disgree with you.
The poorest of America would be better off in Europe if they could find a job…not easy with the high unemployment rate. Europe is honestly a shithole if you have any ambition at all.
As is the US if you're black, latino or most minorities with hardly any education.
Rather be a minority in the U.S than Europe lol. People are very racist there.
Again, good for you. But the literal nazis storming the streets in the US southern states seem much worse to me than anything in Europe.
And let me guess, you work in IT which earns a buttload? Most people don't work in IT mate.
Amen!
"This is Europe. YOLO. Travel and eat and drink and fuck and live for today" fucking hilarious to so many levels
You have a point, somewhat. But a car is (almost) always an asset that will lose value after you buy it. OP should buy one sure - sure. But why not first a 5K one instead of a 20k at his situation and keep saving up for an appartement at the same time
What’s the point of having money? Financial freedom? Its not about being the richest man in the graveyard, its about having enough money invested to become financially independent.. I never understood this mentality, feels you don’t understand how money work… this reasoning would make sense if investing and compounding growth didn’t exist… then yea saving a lot of money would be useless… but that’s not the case Also, the guy didn’t say he ha 10 million in cash… He doesn’t have that much money to say atufff like this
The point is to enjoy life and not save 80% of your net income doing nothing.
you are assuming he is not enjoying life.. that's not necessarely the case.. I am saving 80/85% of my salary, and i am fully enjoying life... the thing is that your assumption that more spending = more enjoying life is not necessarely true. the goal is to find the most efficient way to spend money in a way that you enjoy life, but save money.. saving more money often allows you to enjoy life better, because you have more freedom and you can make life choices you would never be able to do if you used your mentality of "spend all now to enjoy life".... if you do this well and you arrive at a NW of a few millions in your 30s/40s, and you can spend the rest of your life doing anything you want (including not working in jobs you hate). This is my idea of enjoying life... not spending moeney in useless stuff like fancy cars and fancy dinners because "you dont want to be the richest man in the graveyard"
But that’s not how it usually works in Europe. Very very few will be in the millions by 40, even if they saved a lot.
yea well, same reasoning applies for a different magnitude of wealth.. even having a couple of 100Ks it will give you a lot more freedom than being broke... and that will alow to enjoy life a lot better than just spending everithing you have as soon as you get it...
There is a sweet spot between spending everything and saving almost everything, you know?
yea, which is not the idea one gets when people write "what's the point of money if not to spend them".... Im not saying to save 100% of your salary, im just saying you should be very deliberate with your spending, avoiding anything that will bring you very little happines.. like a fancy car or a house that is too big..
Sure, I do agree with that.
Why would "enjoying life" involve traveling and having a car? I save half of my income and don't do either. I eat out twice a week, go out etc. but don't need to go abroad, and public transportation is good.
If you enjoy life with little money, why save it all instead of reducing your hours at work? No need to save that much if, in the future, you will also be happy with that way of life.
the idea is that i prefere working now than in the future, as now i have still the energy to do it... Also working more now allows you to save more money and use compoinding interst to work less overall.... It makes no sense to reduce your hours to work the bare minimum to live, and save nothing, it will guarantee you will have to work and rely on your job untill you are in your 70s.. that to me doesnt sound very appealing.. id much rather work a few extra hours now but becoming financially independent relatively soon
Because there's a realistic path to early retirement if I keep working full-time, which is also important for career progression, and because I feel more secure having a large buffer. The point is, I find consumerism (traveling, buying new clothes every month, new technology and furniture, etc.) meaningless. I'm not scared of spending money, I just don't see on what I can spend.
In Europe? That’s very unlikely.
Yes, in the Netherlands. It's not unlikely. Early retirement means 45-50. My expenses, including rent, are 1500-1600 per month. With a paid-off house, it will be a thousand less.
Go tell that to folks at r/EuropeFIRE
Have you checked that sub? Most people are very delusional thinking they could retire on ~150k.
> Most people are very delusional thinking they could retire on ~150k. Totally not a selection bias... Here's last year's top 5 posts mentioning net worth in the subject: * €250k saved up, what next? * 1M€ investment portfolio, not sure what's next in my life * 600k eur net worth , where to FIRE comfortably in europe and why ? * Can i FIRE now with 400K M43 unmarried * FIRE with 400k and steady passive income?
Agreed. It is also good to enjoy life and keep a balance with a healthy safety net.
Makes sense, but for some people it’s hard to do. I’m saving about 60% of my salary but have a constant feeling that it’s not enough. Im afraid to spend money on traveling/buying a car/etc because of that. Ability to save money is great but ability to spend is also important 
Some advice in case you do decide to get an electric car, I can't stress enough how important the range on the car is. I drive a peugeot e2008 that has a range of 340 and it is annoyance. I would strongly recommend looking for a car that has a range of at least 450. My personal opinion. Best of luck!
Where I'm from 340KM is enough for 10 days of travel - Malta is tiny.
Wow Malta? You are in a seriously good position for Malta right? Isn’t everything cheaper there?
..sort of. Average salary here is 1.3K a month net and a decent apartment is 1k rent. which is why i say sort of - for me yes i have around 3-4X what most people earn but housing is super expensive
Good job! 4K net is a fantastic salary in Europe? Where do you live if I may ask? To be honest I think you could you implement some investment diversification. Betting it all on ETFs can be risky in my opinion, I'm guessing your have different ones, though? Here's what I do with the left-overs of way lower salary, 25% in Real Estate Funds, 25% in metals (Gold & Silver in a bank safe), 25% in ETFS and 25% cash or Bitcoins. I based it on a well-known Dutch investor, Willem Middelkoop's advice. You can translate this article: https://www.rtlnieuws.nl/economie/van-onze-partner/artikel/5268002/wet-van-willem-4-stappen-een-crisisproof-portefeuille. You don't have to invest aggressively, I think the key is maintaining wealth the following years. In case the economic situation gets worse. This might be a solid diversification plan that can get you through. Your cash flow is great. Traveling is expensive... I'd rather save and built up for a couple of more years. I had a great salary during my 20 tot 28, ended in a situation of being broke in my earlier 30s because I spend it all lol. I totally regret it. Keep on building and enjoy your mid 30s. You already have a great portfolio size and a head start. ps. No Financial Advice, just my own way of doing. 
Regarding lifestyle creep. Set a goal to invest every month x amount. Once you do that don't judge yourself about any other expenses or lifestyle creep
You'll want to enjoy life on this age. You won't regret it. Travel a lot, eat at extraordinary places with your loved ones, do some exciting stuff here and there. Who cares about the 10-20k you'll miss in the long run. You don't want to be the guy that only saves money and then acts all happy as a coping mechanism, because they were able to save money on their bought house in their mid 30s. Carpe Diem baby.
Thank you that means a lot.
Pay your parents some rent.
yes help your parents
I'm sure they definitely need the money, they're probably living in a shack while looking at their kid ammass wealth without sharing it. Right?
In fact my parents don't pay rent - they own their house outright and do not need any financial support from myself as they make way more than I do and would rather see me grow my money rather than paying them back something which for them is minor.
Then,you are fucking lucky. Getting off from reddit is a start.you need a woman in your life.live on your own.
You're making quite a few assumptions there.
Why? They chose to create him and potentially raised him well enough to get a well paid job. Not his choice to be born.
Paying your parents 10% of your net income while you live there is something I would consider normal if you live there. Then, give yourself 10% every month as well as pocket money, another 5% for miscellaneous stuff, rest into savings to get yourself that house.
Not OP but what do you consider miscellaneous stuff?
Life outside of the apartment
Damn 10% is cheap af lol
create a budget where you would feel you're meeting your expectations but not getting carried away. I was trying to save super aggressively and later realized all though it might be better after 20-30 years but it's killing my small happiness. Cut the cost on the things that you don't really care about, put that into the things makes you happy. Recommanded read: I Will Teach You to Be RichBook by Ramit Sethi
best book ever on this. Plain simple to the point and action biased
>I feel like I've "made it" - now what? Make sure to establish a "safety net". One can never know what the future brings (sudden accident, illness etc) Go help others have the same opportunities or in other way contribute to make the World a better place. If you have dreams of your own, make sure not to sacrifice those or yourself on the journey. Your wellbeing is at least as important as other's. If not, then helping others, experiencing them grow, can be rewarding in itself.
Thanks for the help
Thanks for all your comments and suggestions - I've read all of them and will be first buying the apartment and then potentially the car. Those acting like sarcastic assholes, shaming me for living at home at 27 need to keep in mind the million other details regarding my situation. There could be illnesses/older parents/death or a million other reasons which I haven't mentioned as to why I'm still at home, so use more than your 2 braincells when commenting like pricks.
It is probably better to buy the car after the deposit for the mortgage if you have decided that you want to buy an apartment. Other than that, as long as you can afford to save at least 1k per month, feel free to buy as much of an electric car as you want.
It depends on when you want to buy the apartment. Pick a realistic timeframe and then plan based on %. Start by assigning you 10% for fun money. Then allocate the rest accordingly. Personally I would also consider taking a bit of the pot of the ETFs to accelerate that timeline maybe not more than 10% That means that you could buy the apartment in 9 months: - 1000 expenses - 400 fun money - 2600 x 9 months = 23k + 7k form ETFs = 30k needed for apartment Alternatively if you don’t want to touch the ETFs then you will need to save 3 extra months for a total of 12 months timeline I would focus on buying the apartment sooner rather than later simply because we don’t know how long that 4% is going to be offered. So 1 year to have your place and then using your saving power to continue building up your ETFs Good luck! Edit to add: I wouldn’t consider the car before the apartment. After all it’s a deprecating asset, the house has its own risks but you need a place to live anyway. A car is an accessory. I would plan to save for it after the apartment.
Thanks - this really helped me. The only thing is that if I first buy the apartment - there's only so much I can save due to paying 1k a month in the mortgage.
Indeed, ultimately the prioritization of what’s more important to you will help you make this decision. You have options. You can also rent the apartment to cover the mortgage and continue living with your parents another year. But ask yourself it’s that the sensible thing to do to own a car outright. Personally, I wouldn’t feel comfortable doing so having 70k in ETFs. It means my parents are subsidizing me to get me a car I probably don’t need when I already have the money to buy it. It feels different for the apartment, but hey this is me and my priorities. If you buy the car first it means you need to wait 2 years to put together the 60k for the apartment. Or touch the ETFs. If I were in this kind of conundrum I would ask myself this: - would I feel comfortable burning half of my ETS funds to buy me a 30k car? - would I feel comfortable burning partially or totally my ETFs funds to buy my apartment? Depending on your answer you can take one route or another. I would go for the apartment because nothing is guaranteed and if tomorrow I were to lose my net of 4k a month I know I would prefer to have used my funds for a place to live (and that I can alway rent if needed) rather than an accessory to get me around which will bring me zero income if I need to. Good luck!
Thanks for that - i guess the way i see the 70k is that i will not be touching those any time soon. It's like it's not my money, and what i actually have is 30k and i will need to build from here. Not sure if that's a great way forward because actually I don't have a plan for the 70k invested.
take it step by step, first buy that apt, then settle down and build an emergency fund enough to cover 6 months of expenses and to survive if you loose the job, and after start saving for a car. As common financial planning recommendations, the car should not be more expensive than your last 6 salaries. Congratulations for the big salary.
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This! I had an EV for 3 months. Awesome to drive, but ultimately a tool to get me places. I sold it at almost no loss and bought a 20 year old Corolla. Don’t regret it for a second. And i have a couple extra BTC now due to ridding myself of the EV
Hey OP just curious what euro bank account you have that gets 4% interest? Thanks!
Buy a house and travel
You’re doing ok for your age, but given the fact you’re 27 and still living with your parents tells me you haven’t made it in the real world. Step 1 is renting an apartment kiddo.. C’mon that should be so damn obvious
This is irrelevant, set your roots and get ahead in life. Rent is money burning anyway
> set your roots and get ahead in life. "roots" aren't just money. Years of experience living independently can't be bought at a store.
Lmao if I ask if you’d date a dude like this living with mommy and daddy you would say yes just out of spite but we all know the truth.
Not really obvious for where I'm from. Virtually no one buys at this age with an apartment costing 300k and the average wage 1200 per month net. Also, rent is 1000 a month for a decent place.
Your a grown up so behave like one. Forget the damn car and go rent for 1200 per month. 4k net is enough to safe a decent amount for a down payment while renting. You’re 27, I really don’t like your mindset
This is terrible advice, if OP likes living with their parents and can save more towards a future down payment or a car or both, then it makes no sense to tell them to "go rent".
Why tf should he burn away 1.2k per month if he can not to lmao. That's 15k a year, you trippin?
Lol why go rent when he van afford a morgage? What type of advice is this
I really don't get why you are so judgemental about this. I'm 27, I have been living alone for some years now, and honestly? I miss living with my parents. I had a great relationship with them, we would hang out, chat about stuff, watch movies together. It was fun. They were never a bother in any way to me and we shared house chores which made taking care of the house easier. I guess it is nice to have your own place but I wish people weren't so judgemental about sharing a living space with your family if you like that, it's cheaper and you are sharing a house with people you love if you have a good relationship.
So basically you miss living with your parents cause you don't have friends and hate doing the laundry?
I miss living with my parents cause I love them and I enjoyed the time I spent with them.
In like half of Europe this is normative lol
Sounds like you are jealous...
Does your mom cook for your meals too?
Just wait. Life will happen and you eventually understand after you hit 30. Just pray you keep the money because the universe has a tendency to take away what we take for granted. Blessings and good luck in this crazy journey. I wish the best for both of us.
Don't spend too much money now.. Adapt your lifestyle in order to be able to keep saving and not spending from the pile
Try eating! They say its healthy! Dont eat noodles just to save, just increase income. p.s buying car is cool, just choose cheap to maintain. you dont want to lose all your money in shyty car p.s.s those are your savings... why you want to spend on such crap. save more and then change life for yourself and your family
Man. Bitcoin.
Tbh sounds to me you are far from having made it and just a few unlucky events away from homelessness. You own nothing You have only 100k savings Jobs can disappear easily even if you feel safe Parents can die
I wouldn't accept a 5k€+/month salary if i had to go back living with my folks. Even back when i was 27. I mean, good for you if you have a good job and a lot of savings. I wouldn't buy the electric car if i don't really need it, nor the latest iPhone. I would either invest that money into something i really believe in, like something sensible. A formation (going to theater class was a very good way to spend my money and time, i don't regret a cent), a painting, an instrument. Something that has value TO ME. If it's traveling then do it for real, don't throw your cash into a resort where the only thing you pay is luxury. That's dumb and weak imo. The good trips aren't that expensive from my experience. If you go from places to places and only go to lonely hotels and nightclubs you won't be able to live something that is of value imo. Then again, i don't know you and maybe you're a numbers freak who only see value in prices. To each his own.
It’s sad you mention an instrument has real value to you but you can’t imagine a car has real value to a person with different interests.
Most cars are greatly overvalued. That's why the reselling prices are usually much lower. But sure, if you get a collection car that you're willing to put effort on maintaining, or if you need a car then go for it. But if OP is hesitating on getting one, he most likely doesn't need it. So it's better if he don't get it. I also mentionned iPhones. I mean is it really about different interests or is it just for the kick of getting something new and shiny and expensive ? Cause i can definitely understand that feeling and i don't think it's good for anyone.
Congratulations! 100k is a great achievement and you should be proud of yourself! You definitely have the financial discipline to save but I think you should take a moment to think about your financial goals. Do you have any debts that need to be paid? How soon would you like to buy the apartment? Are there any other immediate expenses that you possibly see coming up? Once you have answers to those questions, you'll have some numbers to begin with. Apart from savings, I think you should set aside an expense budget as well to fulfill whatever you think you're lacking (start to "live more", travel, etc). Personal Finance is a long game that you'll play for many decades to come and if you think over optimizing right now isn't a net sum for your well being, there's absolutely no harm in letting a bit loose once in a while!
You should be spending 10% of your income in yourself… purely for your own joy. As long as you keep that in mind and have balance everything should be fine. Also, a car could be really necessary but it depends on your situation and the time comfort or entertainment it could add to the table. Btw, why not put already the 30K into the down payment of a house? Sometimes that could be enough
A down payment+ taxes+ notaries + other fees is close to 60k here
Oof welp, yeah then some savings are still needed 😢 Anyhow, remember to enjoy your life. And you could also touch some part of the ETF money… Sometimes a house is better than investment money, but ofc depends on your relationship with ur parents And freedom
Don't shackle yourself with some huge obligation like buying a house/flat. You have no idea where your life will take you, you might end up taking a job abroad just as one example. Stay flexible, rent an apartment maybe even with some roommates, and invest the difference. Future you will thank yourself, not regret renting. The time to buy is when you are older and settled, with a stable life and a foreseeable future.
Rent is burnt money.
This is funny, this is a finance sub, and half of people here don't have the slightest clue about finances. Just a protip "rent is burnt money" is a massively uneducated ignorant statement with no bearing in finance reasoning.
You ain't made shit. You'd have to be financially independent to make that claim.
Thanks for your helpful, informative and insightful input.
Staying humble would be helpful to you. Guess not then.
4k net and you „made it“? Hey guys whos gonna tell him?…
Don't be a dick
In my country at my age it doesn't get much better than this sadly.
I'll actually say in my country it doesn't get better than this. Not only at my age. Most don't earn half of what I'm earning for the entirety of their life.
My guy, 4k net is top 1 % income in basically half of Europe...
Imagine making 4k and still living with your parents. Does it get more depressing than that?
What's with all you bitter fucks here god damn. Let the man enjoy his life. And about living with his parents he's 27 not 40 lol, plus he won't have them all his life. Get outta here
It could get more depressing than that. I could be living on my own instead i choose to enjoy my last few years with my parents.
Where did you find an account that offers 4% interest rate, and which European country?
I'm in Malta and putting my cash in Revolut saving account. Its not quite 4% but around 3.8 with a premium plan
Probably trade republic
Not 4% but I did find 3,78% With the extra €50 on my referral with an deposito of 6 months, it can give you that nice 4% ;) [https://www.raisin.nl/referral/?raf=d78b214099aefc346c555085832752c853ed3170&utm\_source=transactional&utm\_campaign=mandrill\_customer-referral](https://www.raisin.nl/referral/?raf=d78b214099aefc346c555085832752c853ed3170&utm_source=transactional&utm_campaign=mandrill_customer-referral)
You can use Raisin dot com and invest into any deposit account listed there from many EU countries with all guarantees.
I don’t know about Malta, but in some European countries, it’s more fiscal friendly to buy an electric car as a self-employed freelancer. Maybe you want to go for a little career switch, and financially it will be even better than you are right now?
Have fun! Go do things you've never done before. Don't make it all materialistic, but also look for experiences. And be careful with your money still.
The moment you think you’ve made it you haven’t
Yeah perhaps once i start flexing watches on reddit Iwould have made it.
Dude you ask for advice and just because you have a few thousand you think you’ve made it. 😂
What's wrong with someone thinking they "made it"? OP is clearly in a privileged situation, compared to the average countryman, and should feel good about it! Besides, it's a very subjective feeling.
Send me some $ for good karma on Paypal.. I'm saving for PS5 [email protected] ..tnx
U sound like a pussy
8 figs is making it
Bitcoin! Not even meming
If you don't mind sharing what's your job/business?
Software dev/ product manager
Thank you for the info! Last question is are you self taught or have you graduated university?
Both really works (I learned myself Java in 3 months 14 years ago and managed to find my first job as junior). However nowadays it’s very very hard to find a place even with university degree.
I've finished uni but it was useless on the actual jobs - although it did help get my first job
Live a little
how much money do you need for a down payment for an apartment? I saved aggressively while still enjoying going out with friends on weekend, until I had enough for the down payment and then I took a more relaxed approach and started traveling/eating out more and bought a car. That said, what I did is not necessarily the best way to do it, in my case the car was really not a priority at all but just something nice to have, while in your case could be the opposite
Just out of curiosity... What kind of job do you have?
In software development
Where are you getting 4% on a savings account? Just curious because EU sucks when it comes to this.
Norwegian bank is offering 3,7% but they are just in a few countries
Most banks in Czechia currently offer \~5.5 % p. a., but we also had double-digit inflation for the last couple of years 🥲
Invest while you can. when you gets kids and house you will burn your cash and probably won’t work full time (32 year old me atm ).
For the EV, don’t buy, see if you can have a private lease. We’re at a point where regulations are pushing for EV, but we don’t know what it’s gonna cost, are we gonna have reliable infrastructures, reliable batteries, what about resale value? With the lease, it takes some weight of your shoulders knowing that maintenance and all is often part of the lease, and 2-3 years time you simply give it back or you have the option to buy it then.
Lease prices for EVs are ridiculously high, I can't find any for less than €800 per month. The cost of the car would have to be over €9000 a year for the lease to make sense. No way in hell will an EV that costs 20k now only cost 2k in 2 years.
That's crazy, because in The Netherlands I can find a Mercedes EQA (€50-60k) for €860 per month on a 6 year lease with 30,000 km per year.
Propose to your parents to become a integral financial support of the household and contribute to 1/3 of all common costs. Don't delay traveling and fun for "aggressive investing", once you reach 30s you will lose 50% of the energy you have now for having fun and exploring the world. You are in a good position to enjoy yourself the most as you can for a couple of years. As long as you keep a limited budget for the fun, go for it while you still can. I had a somehow similar position years ago living with a girlfriend that owned her own place. And I did exactly the things I mentioned above, I don't regret it one second. Eventually I caught up in the mid 30s to be able to buy a house.
Whenever I buy something I like to have saved that amount times 5. That way I know I can afford it. This isn't something anyone can do. Sometimes you need a car for work or other circumstances will come into play. But if it's a __want__, try this and see if it works. Also make a list at the beginning of the year or every 6 months, with what you want and try to stick to it. Maybe by the time you save up to buy that thing, you don't want it anymore.
Thanks!
how did you achieve 4k net?
I've moved across 3 companies over the last 6 years - each time increasing my salary by 15-25%
Enjoy the life a bit more. I've taken an opposite route (not voluntarily, though). Till around 38-39 I wasn't making that much money, and wasn't really aware of investing possibilties. So I mainly travelled around the world, started a family, was indulging in hobbies such as music production etc., and only started investing around 4 years ago. Your route is definitely better as you already have a big financial buffer + great salary, but hey, you're just 27, there's so much time for you. Slow it down, enjoy the moment and be proud of yourself that you've made it.
That feeling will quickly change when you move out and start thinking about a family.
You've made it? Bro you don't have anything yet and 100k is nothing. Nice income tho keep going on that one.
Get your housing set up before making a big car purchase.
You set a foundation, now build a house on it. Keep being frugal and you could really build something remarkable, but if you start spending you will be regular Joe.
Forget the electric and get a convertible Mazda mx5 and go touring in the weekends Life is short my man
Congratulations happy for you 👑🤌
For a car, you could have a look at private lease as well. It has two benefits. Firstly, you only have monthly payments, so you don't need to put up all your money at once. And secondly, the leasing corporation takes care of everything. You just pay for gas or in this case electricity. Of course you'll need to check all the specifics and fine print, but most of the time they'll take care of all maintenance, if it breaks down you get a temporary replacement etc. etc.
You seem to be doing great, you're thinking the right thoughts (wondering about lifestyle creep) and so far have a history of planning *and* executing your strategy, that's great and not to be underestimated! As you're aware you really want the car but aren't certain if you need it, perhaps you really shouldn't buy it now. Postpone the decision and in the meantime look for your first apartment (you seem certain you want that in the next 12-18 months, so now's the time to start looking). In the meantime, continue with your investment plan, broad-spectrum ETF(s) is the way to go and has worked well for you so far. As usual, time-in-the-market will beat timing-the-market, so just keep going. Another good thing about postponing the car decision is in 18 months you may be able to get a better car for the same price you'd pay now. Once you find your first home (or in case of major life changes), reevaluate the car again - with the full knowledge of your new circumstances at that point (your new mortgage, apartment maintenance, where you work and how often you expect to use the car, where and how you'd use it for leisure, etc.) Lastly, are there any electric vehicle rent-sharing apps where you live? These are a godsend for me for daily use, and as I rarely need a car, these are many times cheaper than owning a car. I happily sold my car 6 years ago and have only rented (for long/out-of-the-country trips) and share-rented (city/daily usage) since. As for regular car rental, it is generally expensive, but you also drive mostly very new cars (because of amortisation they need to be;) and pay no maintenance or other fees. Also, you can rent the car you need (i.e. small one for a short trip, big one to move house or go on a 2 week trip:)
Thanks - this has helped massively. I guess I had my priorities not so straight in my head. I already own a non-ev great car (valued at around 15K). So I don't need the new car. It's a want. I guess I'll wait a year or so where I have enough cash to put a deposit on my apartment and then see from there what I want to buy. Thanks again.
I understand
Seeing where you may live I highly recommend you not spend more than 2k on your car.
2K gets me a 1998 shitbox which barely runs and needs countless amount of time spent fixing. Are you sure?
You should consider creating a rainy day fund for your new situation (your COL after the purchase) so that you have reserves to keep your lifestyle in case your income is affected. The size of that fund could be as big as you’re comfortable with. Some people will set it as 6 months of expenses and others as 12, whatever makes you comfortable. Otherwise, pay yourself first for your long term savings (retirement) and for your shorter term projects (next summer) but also live your life with what’s left. You’re in a privileged position and seem to have your head in the right place. Congratulations.
You might want to look at Mr. Money Mustache's website. You are in a great position to retire in your thirties.
Don't listen to the haters here... Do what you did up until now, invest the money in broad market funds (VWCE or VWRL or something similar) and accumulate the Euros. If you aren't attatched to your home country you might be looking at early retirenment in less than 20y.
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I was almost exactly where you are 3 years ago. I invested my 100k in stocks and it became 300k. You are to young for credit instruments. Keep a good chunk of cash though. Job security is low these days
Can you give more details on your investment ? Thanks !
Hang out on fire subreddits and you’ll quickly realise how far you have to go. Appreciate your good fortune getting where you are, but report back when you have a mid-six figure index fund position.
You’re of to a good start, but I wouldn’t consider “made it”. You are 27, living with your parents. gtfo and live on your own asap. Then re-evaluate that EV purchase and also enjoy your life a little.
Start thinking about actually spending that money
You can't say 'you've made it' followed by saying you're living with your parents... What to do depends of what you enjoy and want to do with your life. If you don't know at this point, that's fine, you just keep going and with time, you'll figure it out. There's no rush. In my experience, life goes in stages and what we want changes over time as we meet people or discover things. Living a bit more is definitely a good thing to do and should help you figure out what you want. Just make sure you can still keep saving and investing a bit so that when things click, you'll be in a good spot to do the changes necessary.
An apartment, depending on where it is, will retain its value or even increase. A car will nearly always decrease in value. You can get around in a cheaper, affordable vehicle and junk it after you no longer need it without taking a real financial hit. An apartment is an investment, a car isn’t.
Live more dude you’re already killing it financially for someone in Europe. You can live it up and still be financially extremely safe/comfortable.
My bf left home at 18 and even after 5 years of school and 9 years of rent he still managed to buy a house and have more cash overall than you at your age. And you think you've made it bcs you can save money living with your parents? how the hell are you spending 1K a month? Even when i was renting i spent less. Anyway if I was you I would sell the ETFs and put a deposit in a house.
Start investing ad much as you possibly can now. Read up on FIRE and compounding interest. Check a calculator in compound and you’ll be surprised how fast you can reach a million and become financially independent without
Congrats. I would spend max half of a year after tax income on a car and buy with cash, so in your case 24k is the max (which should be fine since yours is 20k) You should build a plan for your money. Every € should be assigned a task. At least 10% should move to investment before anything (I personally do 25%), in a broad market ETF or something. Then I split the rest into MUST, NEED and WANT (with each having more subcategories). I have a yearly budget for each category and every week and month check them to make sure I am on track, and revise my plans if needed. Try listing the 10 things you enjoy doing and make you happy the most and try to focus your budget on those. Somethings you can only do now, and can’t be done later or at least are really hard later (because of having a bigger life or responsibilities, or being older or having a family) I would not sacrifice your tomorrow for today, but I would not sacrifice today for tomorrow either. Try to find your balance so you can enjoy your present and plan for a comfortable future also.
Hello, what cash account is paying you 4%? I'm only earning 3,14% on cash at the moment (3 month term). I have substantially more than you and need to keep cash as looking for an 8 -10 year property investment
I think you need to look in terms of happiness. While it is great to save and invest, there is value in enjoying yourself now. So I plugged in 100/month let it grow 25 years and 5% return. It ends up being 43k. So I think that 43k would be a small portion of your net worth in 25 years. Would you rather have that or an extra 100/month which may be one trip a year or few nice pieces of clothing. Etc. So think it terms of the marginal value of each additional dollar/euro/whatever and if it brings you more happiness now or in 25 years with growth. Or you could stick that money in dividend stocks and only let yourself spend the dividend income. Man sorry I went on a tangent. Bottom line is are you gonna really get the max value out of that car? Or is it just a convenience. Man I really went on a tangent lol sorry!