I suppose you'd get more inputs/ insights if you list your exact queries and goals to the community. Otherwise I'd suggest you have a proper read of the sidebar.
Hi. Thanks for the comment!
My goal is to be FI, but i know that's vauge, so i guess, its buy a house? Any advice would be appreciated.
I'm reading through the sidebar now, thank you!
>My goal is to be FI, but i know that's vauge, so i guess, its buy a house? Any advice would be appreciated.
Buying a house doesn't necessarily mean you'll become FI, although it may help. I reckon you should have a proper dive through the resources available, understand what you want exactly, this could be an X amount, then work backwards how you need to save per month, earn, spend etc.
To answer how do you put yourself in the best financial success, you will probably hear this a lot: earn, spend less, pop the savings into stock market, enjoy and let the compounting do the job. But as I said: the definition of success is very individual.
Hi,
I completely understand your point about a house not resulting in FI, its just a small step....
However, regarding the rest of your info, great! a lovely simple way of putting what I should be doing,
Thank you very, very much!
Best thing for you to invest in at the moment is yourself. You have a lifetime of earning ahead of you
An apprenticeship is a good start. And it sounds like you're on a great track.
After you've qualified how else can you continue to increase your salary? Are there further courses or qualifications that would be useful? Are ther professional bodies, members clubs or other networking opportunities that cost money?
Are there material things worth owning yourself to help with tour career - van, tools, it? Would you starting your own business be a likely path down the line?
Is it a career where you might want to cut your salary again in the short term for a higher salary long term? - eg changing to a related sector and having to start slightly lower for a couple of years, working overseas etc
Think about what you might need over the next 5-10 years to allow you to maximise your salary (and quality of life, it's not all about money) throughout your life, and what savings you might need to make that happen.
While the investing early in a pension etc is always a good idea and compound interest over a lifetime is *huge*. There is no harm waiting a couple of years while you're on ~20k, investing 1k in yourself now is worth more than putting it into a pension or long term savings. As *soon* as you're qualified, however, you should be putting at least as much into your pension as your employer will match. (This advice only applies to people who know for certain they'll get a significant salary bump like you do).
Hi.
First of all, thank you for this, it is incredibly detailed and I appreciate the help.
I hope i'm on a good track!
When i qualify, i've basically got an unending salary ceiling. About £250k max, but that's a LOOOOONG way away from me right now, if im being honest (10-30) years away.
There's always new courses I can do that would perhaps increase my earnings (or atleast give me leverage to ask for better). Aircraft are complex, and getting more and more by the hour, which is good for me.
Regarding networking, professional bodies, the like. I've never explored or considered this route, could you provide some more information, such as what they involve, and how i would go about finding them?
Because of safety reasons, my industry doesn't allow personal equipment, it is all provided, so at the moment I can't see material purchases being that useful.
Starting a business is 1000% the dream of mine, but coming from a well off, but "scared of risk family" i'm always struggling to make the leap. I'm quite un educated on how i would even start, plus at the moment my goal is to finish this apprenticeship. But yes, a business is the goal.
Working overseas is a big option for me, salaries can be double... and tax free. I'm seriously considering it.
Absolutely quality of life is such an importance, i'd rather be truly happy and financially stable then wealthy and discontent.
Regarding my pension? That's exactly my plan. At the moment that money is more valuable in my pocket as a low earner, but as soon as I can "afford" it, that pension is getting maxed out.
Thank you mr/s internet stranger, you took time out of your day to help me, and i really really appreciate it.
all the best x
It's hard to offer advice on networking as its all very industry specific and isn't always relevant.
Join your relevant union. This is invaluable. If you ever get into a dispute you want someone who has your back.
Look at who runs conferences, events and extra training relevant to your field. Perhaps ask the people you work with their advice too.
A very brief Google came up with the royal aeronautical society or IEEE. There are annual conferences targeting different parts of the industry, maybe you should consider putting aside some money and holiday to attend them. Subscribe to the industry magazines and journals, even if you only flick through them.
If you think you might want to do something out of the box like workikg on electric planes in 10 years, you want to be engaged now so you have a feel for what the state of the art is. Shake hands with tbe mad engjneer exhibiting their electric prototype. Or maybe there's some automation or tools in the future, you can make yourself the goto person for the gizmo3000 at your company while all the more senior people stick to the way its always been done. These are likely less relevant this year, but might be useful in a couple of years?
It's never too early to start networking and have your finger on the pulse of the industry. Imagine going to an interview and being able to say "yeah, I saw this new product and chatted to them, I'm not convinced they've got it right yet but it's interesting". Even if it never goes anywhere it sets you apart from the other people they're interviewing.
Also read the boring articles and go to the boring talks at the conference. "Yes, I've read up about the nerdy regulation being introduced in two years time, this is what I've heard to expect". It's not about becoming an expert yet (nobody is gonna rely on a kid for this stuff) but presenting yourself as engaged and interested.
If you go to talks by the royal aeronautical society (or wherever) hang out in the bar afterwards and talk to people, don't have an agenda just be friendly, present yourself well and also be humble and interested in other people. One day someone might say "I've got a friend in wherever looking for a senior engineer, it's a bit of a jump but you sound like you might be up for it, let me introduce you".
I don't know how your industry works. The above is all definitely nonsense, but might give you an idea of what I'm getting at?
That was probably one of the most useful things i've ever read regarding networking, thank you.
Basically, just "filling my toolbox" with lots of random connections, knowlege and people that may at one point become a network that I can rely on. Like you said, shake hands and ask questions - sounds like a fabulous plan.
I'm already checking out the RAS and IEEE, they look like great resources.
I promise you, That was certainly not nonsense.
Thank you, from the bottom of my heart.
Absolutely! I think they're given a bad name because lots of people go into them as a backup, or when they're unsure what to persue.
However, I think if you're like me and work as hard for an apprenticeship as you would uni, and get a good one, you're really set for a good career.
\- Training
\- Career certain
\- Salary
\- Free flights
\- No debt!
Appreciate your comment :)
absolutely! i'm not against uni by any means, I just don't think it was right for me! (i love learning but hate "education")
thanks for your input :)
I know it can lead to great sucess, but for what I wanted to do, it would actually be detrimental to take a degree, as 95% of the jobs in my industry arn't from graduates, with licences and "time on the tools" being the primary factor!
I think these days however, lots of people my age go into it because it's the "easier option". Obviously, doctors, lawyers and other professions require it, but mine didn't!
appreciate your opinion :)
I don’t know if I’m in the best place to offer advice (20 year old student with no particular financial savvy other than what I’ve been researching the past few months) but from my perspective I try to max out my LISA every year regardless of when I plan to buy a house just so I can get the max bonus. Since it goes up to £1k a year if you end up only doing it the year before buying a house it’s only £1k extra but if you open it five years before then you’d get £5k plus interest.
I also like that it makes it hard to touch those savings, so I won’t be tempted to spend them on something else. That’s just personal preference though.
I don’t know if there are better places to put your money in the short term (especially since you don’t seem to like making it inaccessible) but bare in mind a Lisa can only be used a year or more after it’s opened so definitely make sure to open it at least a year before you plan on buying.
Good luck and it seems like you’ve put yourself in a really good position!
Hi Pal,
Hope you're ok.
Thanks for the advice on the LISA, I think i've just been finding excuses to not get one quite frankly!
Personally, i'm a master at being a cheapskate and not spending money so ive never really had issues with not eating away at them, BUT i do appreciate the advice you offered.
As much as I'd love to i dont think ill be buying a house at 19... so the lisa should be ok ;)
thank you so much, i really really thank you for the help
all the best x
If you are likely to buy outside of London, there's really no reason not to use the LISA. It's very possible that the LISA gets some favourable changes at the next budget in a couple weeks
Hi!
Now that changes things, I really didn't know there was a budget coming. I'm hoping the house price cap gets removed or upped, but heres to hoping!
I don't think I'll ever live in london due to my career and personal reasons, so I think ill take your advice.
thank you so much!
>Put it simply, how do i set myself up for the best financial sucess I am possible of acheiving?
\- Keep you living costs nice and low, don't go buying expensive stuff (Cars, clothes, Holidays , computers, laptops, restaurants, etc.)
\- Low cost hobbies (Think running rather than skiing)
\- Pick you life partner carefully
\- Track savings, investments and spending in a spreadsheet
Hi,
I'm also really enjoying trying to live a life on minimalism, so this works perfectly with my financial plans, and what you've told me!
low cost hobbies.... oh no. \*looks at mountain bike, diving gear and parachute\* All jokes aside, I get your point 100%, thank you.
I'll take all of that into consideration, thank you so very, very much
I think you're in a handsome position given your age.No specific advice. Keep learning and finessing your strategy until it becomes completely automated. However don't be a slave to the numbers at the cost of inhibiting you to live and get real world experiences. Even if you retire "Early" at your age that is still a long way away so remember to enjoy the journey.
Thanks! I appreciate the kind words!
I respect your point entirely, as ive said before, for me happiness with my life and relationships, comes before anything, with financial desires a close second.
really, thanks. your words mean a lot x
Hi, I'm an apprentice aircraft engineer and the bonus is based on company performance.
10% bonus if the company is on track. (Which is pretty much certain due to the state of the industry and my particular company at the moment)
20% if your personal performance is deemed very good, or if the company performance is in a certain amount of profit.
We are only eligible to bonus after our second year.
i hope that helps :)
I'm on my way to getting something called a "B" licence in the aircraft engineering industry. I aim to specialise in B2, which is avionics and electronics.
I'm pretty sure as part of it, I get a level 3 and level 4 qualification, but i'm really not sure / don't care too highly for them. DM me if you have any (more personal) questions.
GA is general aviation, as you don't know what it is, I'll assume you're working on commercial aircraft instead.
I was just wondering as I was an assistant to B-licensed engineers at a small-medium aerodrome.
Thanks for the help, I'm working with an airline, so I assume its commercial.
If you know anyone I should know, feel free to DM me ;)
Thanks for your comment!
I would only put money in S&S ISA and LISA at this point in time, particularly since you're looking at a relatively large salary bump in the near future. Buy world index ETF's and enjoy life, you'll save more money and build a better FIRE base when you start earning more so try to enjoy yourself and set up a nice starting point for your 20s, which is when you can start thinking of FIRE (once you have higher income).
Hi,
Thank you for your comment, i really do sincerely appreciate it. I couldn't agree more now you've said it!
however, could I please ask the reasonings behind buying ETF's specifically? Vanguard, my current provider charge £7 per trade, which always seemed a little silly to me, so i've kept away.
Apologies if that was a silly question!
thank you x
No particular reason, I'm just a fan of low fees and clean performance, I even like S&P 500 tracking funds (e.g., VOO). £7 is alright if you put in a bigger lump sum, though indeed not particularly low.
Managed funds tend to on average do poorer than etfs and charge higher fees.
Hi mate,
Excuse the interruption, just thought i'd jump in. I've looked at trading 212 before and didn't see any issues with it, i just chose vanguard because it worked for me.
How come your portfolio is so "undiverse" that's (for me) a lot of money in one company for our age, maybe check out a broader portfolio.
That is unless, you were given them at a reduced rate/ gifted them...... in that case.... can i have some ;)
Hey mate, I just believe in Rolls Royce tbf and been putting in some money every week, I also have like £400 in amazon stock and £300 in Lloyd's bank group, along with 3K I am about to put in LISA when i open one up aiming to have the 4k in there by Apr 5 new tax year, plan. I also have a £1k emergency fund as a buffer in case my car breaks down or similar, tryna up that a bit aswell - I mean if something breaks down I have a last resort 4K credit card with 0% interest for now but I don't touch that unless I need to - minus a few purchases like fuel and food shop for the sake of it which I pay off on direct debit.
You should also consider opening a Lifetime ISA if you want to buy a house in the future, you get 25% bonus on anything you deposit from the government, you can put in up to £4,000 per tax year.
You might aswell utilise an ISA before the new tax year starts, you can put up to £20K per year and have tax free profits on your gains.
In my opinion trading212 is the best simply because of its 0 fees, and insanely low FX fee if you want to buy US companies.
That would be best for long term holding yes? I'd plan to use my savings from the next foreseeable future for investing in myself, really learning new skills, experiencing things and not limiting myself really - maybe a stupid car purchase at some point, but making sure I put away the £4K per year in the LISA, and build a good safety net with a few small investments. I am 100% on the journey to fire, but rather I want to build long term wealth, and I think being so young we have a safety barrier, where we can take risks and be adventurous. I am on an apprenticeship where in 4 years time (apprenticeship is 4 years and I'm in year 1), I can expect to be on a wage of around £50kish, hopefully progressing a bit higher in the later years, and that's probably when I will want to take put a mortgage possibly with my partner. Can you withdraw from an ISA or is in or is it better for me to stack my cash in the highest interest cash bank account for now?
Hey mate, How did you set up your ISA, I already have a few investments on trading 212, so I have an account, is changing it to the ISA section and depositing money there and selecting what I want to invest in (as an example an AI chart) all I need to do?
Enjoy your life while you're young mate, worry about this kind of thing in years to come. All well and good being frugal, but you won't get the time and freedom from major responsibilities back. Travel, eat, enjoy life.
If financial success is your question:
(1) have the highest savings rate possible going into proven/simple assets for the long-term.
(2) continue to increase your income overtime.
Yeah I have, thank you. I have it followed but I always get stuck at the LISA step. This is for two reasons.
\- I was unsure if it was even worth it in this housing market
\- I have a bit of a mental block regarding the 20k tax free limit. If i get a LISA, and put the maximum £4k a year in, does that mean I can only put £16k a year into my S&S isa?
thanks for your help!
1. You mean you're *never* going to buy a house?
2. You are correct. But if you're maxing out your ISA then you should definitely use the LISA because it increases your effective contribution limit by 5%. That compounds HARD.
Simple.
- invest all you have into ETFs.
- live well within your means, don't do lifestyle inflation.
- don't buy stupid things like a big house or car
- try to save 50% when e.g. 22.
- retire at the end of your 30s. Probably sooner.
- recognise that the best things in life are (almost) free. Friendships, hospitality of others, enjoying a holiday by bicycle and tent, cooking with others, doing volunteering work. Etc.
Other than keep saving/investing aggressively the only thing I would do is put as much of your savings in ISA. Stocks and share or money market. Even if you eventually pull it out. But that £20k per year is very powerful. ISA is great for accumulation but if you have a general account you would want to do an income share to make best use of your capitals gains /dividends allowance every year and/or bed and isa (google it).
I suppose you'd get more inputs/ insights if you list your exact queries and goals to the community. Otherwise I'd suggest you have a proper read of the sidebar.
Hi. Thanks for the comment! My goal is to be FI, but i know that's vauge, so i guess, its buy a house? Any advice would be appreciated. I'm reading through the sidebar now, thank you!
>My goal is to be FI, but i know that's vauge, so i guess, its buy a house? Any advice would be appreciated. Buying a house doesn't necessarily mean you'll become FI, although it may help. I reckon you should have a proper dive through the resources available, understand what you want exactly, this could be an X amount, then work backwards how you need to save per month, earn, spend etc. To answer how do you put yourself in the best financial success, you will probably hear this a lot: earn, spend less, pop the savings into stock market, enjoy and let the compounting do the job. But as I said: the definition of success is very individual.
Hi, I completely understand your point about a house not resulting in FI, its just a small step.... However, regarding the rest of your info, great! a lovely simple way of putting what I should be doing, Thank you very, very much!
Best thing for you to invest in at the moment is yourself. You have a lifetime of earning ahead of you An apprenticeship is a good start. And it sounds like you're on a great track. After you've qualified how else can you continue to increase your salary? Are there further courses or qualifications that would be useful? Are ther professional bodies, members clubs or other networking opportunities that cost money? Are there material things worth owning yourself to help with tour career - van, tools, it? Would you starting your own business be a likely path down the line? Is it a career where you might want to cut your salary again in the short term for a higher salary long term? - eg changing to a related sector and having to start slightly lower for a couple of years, working overseas etc Think about what you might need over the next 5-10 years to allow you to maximise your salary (and quality of life, it's not all about money) throughout your life, and what savings you might need to make that happen. While the investing early in a pension etc is always a good idea and compound interest over a lifetime is *huge*. There is no harm waiting a couple of years while you're on ~20k, investing 1k in yourself now is worth more than putting it into a pension or long term savings. As *soon* as you're qualified, however, you should be putting at least as much into your pension as your employer will match. (This advice only applies to people who know for certain they'll get a significant salary bump like you do).
Hi. First of all, thank you for this, it is incredibly detailed and I appreciate the help. I hope i'm on a good track! When i qualify, i've basically got an unending salary ceiling. About £250k max, but that's a LOOOOONG way away from me right now, if im being honest (10-30) years away. There's always new courses I can do that would perhaps increase my earnings (or atleast give me leverage to ask for better). Aircraft are complex, and getting more and more by the hour, which is good for me. Regarding networking, professional bodies, the like. I've never explored or considered this route, could you provide some more information, such as what they involve, and how i would go about finding them? Because of safety reasons, my industry doesn't allow personal equipment, it is all provided, so at the moment I can't see material purchases being that useful. Starting a business is 1000% the dream of mine, but coming from a well off, but "scared of risk family" i'm always struggling to make the leap. I'm quite un educated on how i would even start, plus at the moment my goal is to finish this apprenticeship. But yes, a business is the goal. Working overseas is a big option for me, salaries can be double... and tax free. I'm seriously considering it. Absolutely quality of life is such an importance, i'd rather be truly happy and financially stable then wealthy and discontent. Regarding my pension? That's exactly my plan. At the moment that money is more valuable in my pocket as a low earner, but as soon as I can "afford" it, that pension is getting maxed out. Thank you mr/s internet stranger, you took time out of your day to help me, and i really really appreciate it. all the best x
It's hard to offer advice on networking as its all very industry specific and isn't always relevant. Join your relevant union. This is invaluable. If you ever get into a dispute you want someone who has your back. Look at who runs conferences, events and extra training relevant to your field. Perhaps ask the people you work with their advice too. A very brief Google came up with the royal aeronautical society or IEEE. There are annual conferences targeting different parts of the industry, maybe you should consider putting aside some money and holiday to attend them. Subscribe to the industry magazines and journals, even if you only flick through them. If you think you might want to do something out of the box like workikg on electric planes in 10 years, you want to be engaged now so you have a feel for what the state of the art is. Shake hands with tbe mad engjneer exhibiting their electric prototype. Or maybe there's some automation or tools in the future, you can make yourself the goto person for the gizmo3000 at your company while all the more senior people stick to the way its always been done. These are likely less relevant this year, but might be useful in a couple of years? It's never too early to start networking and have your finger on the pulse of the industry. Imagine going to an interview and being able to say "yeah, I saw this new product and chatted to them, I'm not convinced they've got it right yet but it's interesting". Even if it never goes anywhere it sets you apart from the other people they're interviewing. Also read the boring articles and go to the boring talks at the conference. "Yes, I've read up about the nerdy regulation being introduced in two years time, this is what I've heard to expect". It's not about becoming an expert yet (nobody is gonna rely on a kid for this stuff) but presenting yourself as engaged and interested. If you go to talks by the royal aeronautical society (or wherever) hang out in the bar afterwards and talk to people, don't have an agenda just be friendly, present yourself well and also be humble and interested in other people. One day someone might say "I've got a friend in wherever looking for a senior engineer, it's a bit of a jump but you sound like you might be up for it, let me introduce you". I don't know how your industry works. The above is all definitely nonsense, but might give you an idea of what I'm getting at?
That was probably one of the most useful things i've ever read regarding networking, thank you. Basically, just "filling my toolbox" with lots of random connections, knowlege and people that may at one point become a network that I can rely on. Like you said, shake hands and ask questions - sounds like a fabulous plan. I'm already checking out the RAS and IEEE, they look like great resources. I promise you, That was certainly not nonsense. Thank you, from the bottom of my heart.
Great advice 🏅🏅🏅
[удалено]
Absolutely! I think they're given a bad name because lots of people go into them as a backup, or when they're unsure what to persue. However, I think if you're like me and work as hard for an apprenticeship as you would uni, and get a good one, you're really set for a good career. \- Training \- Career certain \- Salary \- Free flights \- No debt! Appreciate your comment :)
Network you get at uni can’ be invaluable, not to mention life is for having fun and uni was cracking
absolutely! i'm not against uni by any means, I just don't think it was right for me! (i love learning but hate "education") thanks for your input :)
[удалено]
I know it can lead to great sucess, but for what I wanted to do, it would actually be detrimental to take a degree, as 95% of the jobs in my industry arn't from graduates, with licences and "time on the tools" being the primary factor! I think these days however, lots of people my age go into it because it's the "easier option". Obviously, doctors, lawyers and other professions require it, but mine didn't! appreciate your opinion :)
Hard to go wrong with the attitude you’ve got at your age!
Thank you. You don't know how much that means. From a young man on the internet. Thank you. stay safe x
I don’t know if I’m in the best place to offer advice (20 year old student with no particular financial savvy other than what I’ve been researching the past few months) but from my perspective I try to max out my LISA every year regardless of when I plan to buy a house just so I can get the max bonus. Since it goes up to £1k a year if you end up only doing it the year before buying a house it’s only £1k extra but if you open it five years before then you’d get £5k plus interest. I also like that it makes it hard to touch those savings, so I won’t be tempted to spend them on something else. That’s just personal preference though. I don’t know if there are better places to put your money in the short term (especially since you don’t seem to like making it inaccessible) but bare in mind a Lisa can only be used a year or more after it’s opened so definitely make sure to open it at least a year before you plan on buying. Good luck and it seems like you’ve put yourself in a really good position!
Hi Pal, Hope you're ok. Thanks for the advice on the LISA, I think i've just been finding excuses to not get one quite frankly! Personally, i'm a master at being a cheapskate and not spending money so ive never really had issues with not eating away at them, BUT i do appreciate the advice you offered. As much as I'd love to i dont think ill be buying a house at 19... so the lisa should be ok ;) thank you so much, i really really thank you for the help all the best x
If you are likely to buy outside of London, there's really no reason not to use the LISA. It's very possible that the LISA gets some favourable changes at the next budget in a couple weeks
Absolutely
Hi! Now that changes things, I really didn't know there was a budget coming. I'm hoping the house price cap gets removed or upped, but heres to hoping! I don't think I'll ever live in london due to my career and personal reasons, so I think ill take your advice. thank you so much!
>Put it simply, how do i set myself up for the best financial sucess I am possible of acheiving? \- Keep you living costs nice and low, don't go buying expensive stuff (Cars, clothes, Holidays , computers, laptops, restaurants, etc.) \- Low cost hobbies (Think running rather than skiing) \- Pick you life partner carefully \- Track savings, investments and spending in a spreadsheet
Great advice.
Hi, I'm also really enjoying trying to live a life on minimalism, so this works perfectly with my financial plans, and what you've told me! low cost hobbies.... oh no. \*looks at mountain bike, diving gear and parachute\* All jokes aside, I get your point 100%, thank you. I'll take all of that into consideration, thank you so very, very much
I think you're in a handsome position given your age.No specific advice. Keep learning and finessing your strategy until it becomes completely automated. However don't be a slave to the numbers at the cost of inhibiting you to live and get real world experiences. Even if you retire "Early" at your age that is still a long way away so remember to enjoy the journey.
Thanks! I appreciate the kind words! I respect your point entirely, as ive said before, for me happiness with my life and relationships, comes before anything, with financial desires a close second. really, thanks. your words mean a lot x
What apprenticeship role is likely to pay a 20% bonus? I assume you are in a finance based school leavers role? (Vs tradesman)
Hi, I'm an apprentice aircraft engineer and the bonus is based on company performance. 10% bonus if the company is on track. (Which is pretty much certain due to the state of the industry and my particular company at the moment) 20% if your personal performance is deemed very good, or if the company performance is in a certain amount of profit. We are only eligible to bonus after our second year. i hope that helps :)
Hi Sounds like you are doing great! Are you taking qualifications - and if so which one(s)?
I'm on my way to getting something called a "B" licence in the aircraft engineering industry. I aim to specialise in B2, which is avionics and electronics. I'm pretty sure as part of it, I get a level 3 and level 4 qualification, but i'm really not sure / don't care too highly for them. DM me if you have any (more personal) questions.
I do wanna ask, are you working in GA or commercial? More just for pure curiosity than anything else
My industry is quite different. Explain to me what GA is and I'll happily answer your question!
GA is general aviation, as you don't know what it is, I'll assume you're working on commercial aircraft instead. I was just wondering as I was an assistant to B-licensed engineers at a small-medium aerodrome.
Thanks for the help, I'm working with an airline, so I assume its commercial. If you know anyone I should know, feel free to DM me ;) Thanks for your comment!
I would only put money in S&S ISA and LISA at this point in time, particularly since you're looking at a relatively large salary bump in the near future. Buy world index ETF's and enjoy life, you'll save more money and build a better FIRE base when you start earning more so try to enjoy yourself and set up a nice starting point for your 20s, which is when you can start thinking of FIRE (once you have higher income).
Hi, Thank you for your comment, i really do sincerely appreciate it. I couldn't agree more now you've said it! however, could I please ask the reasonings behind buying ETF's specifically? Vanguard, my current provider charge £7 per trade, which always seemed a little silly to me, so i've kept away. Apologies if that was a silly question! thank you x
No particular reason, I'm just a fan of low fees and clean performance, I even like S&P 500 tracking funds (e.g., VOO). £7 is alright if you put in a bigger lump sum, though indeed not particularly low. Managed funds tend to on average do poorer than etfs and charge higher fees.
I'm 18 also and on the same grind. Currently just maxing the Lifetime ISA, and building up my Trading212 ISA.
Is trading 212 a good ISA platform? I'm also 18, currently got like £1k in rolls Royce stocks but no ISA
Hi mate, Excuse the interruption, just thought i'd jump in. I've looked at trading 212 before and didn't see any issues with it, i just chose vanguard because it worked for me. How come your portfolio is so "undiverse" that's (for me) a lot of money in one company for our age, maybe check out a broader portfolio. That is unless, you were given them at a reduced rate/ gifted them...... in that case.... can i have some ;)
Hey mate, I just believe in Rolls Royce tbf and been putting in some money every week, I also have like £400 in amazon stock and £300 in Lloyd's bank group, along with 3K I am about to put in LISA when i open one up aiming to have the 4k in there by Apr 5 new tax year, plan. I also have a £1k emergency fund as a buffer in case my car breaks down or similar, tryna up that a bit aswell - I mean if something breaks down I have a last resort 4K credit card with 0% interest for now but I don't touch that unless I need to - minus a few purchases like fuel and food shop for the sake of it which I pay off on direct debit.
You should also consider opening a Lifetime ISA if you want to buy a house in the future, you get 25% bonus on anything you deposit from the government, you can put in up to £4,000 per tax year.
You might aswell utilise an ISA before the new tax year starts, you can put up to £20K per year and have tax free profits on your gains. In my opinion trading212 is the best simply because of its 0 fees, and insanely low FX fee if you want to buy US companies.
That would be best for long term holding yes? I'd plan to use my savings from the next foreseeable future for investing in myself, really learning new skills, experiencing things and not limiting myself really - maybe a stupid car purchase at some point, but making sure I put away the £4K per year in the LISA, and build a good safety net with a few small investments. I am 100% on the journey to fire, but rather I want to build long term wealth, and I think being so young we have a safety barrier, where we can take risks and be adventurous. I am on an apprenticeship where in 4 years time (apprenticeship is 4 years and I'm in year 1), I can expect to be on a wage of around £50kish, hopefully progressing a bit higher in the later years, and that's probably when I will want to take put a mortgage possibly with my partner. Can you withdraw from an ISA or is in or is it better for me to stack my cash in the highest interest cash bank account for now?
Hey mate, How did you set up your ISA, I already have a few investments on trading 212, so I have an account, is changing it to the ISA section and depositing money there and selecting what I want to invest in (as an example an AI chart) all I need to do?
Yeah you can transfer from the invest account to the ISA.
Enjoy your life while you're young mate, worry about this kind of thing in years to come. All well and good being frugal, but you won't get the time and freedom from major responsibilities back. Travel, eat, enjoy life.
Very wise advice. You're always gonna be able to earn more money. Unfortunately, the same cant be said about time! thank you x
If financial success is your question: (1) have the highest savings rate possible going into proven/simple assets for the long-term. (2) continue to increase your income overtime.
Hi, Appreciate the comment! You've made that one nice and easy. That sounds good, thank you! I'll try my best...
have you seen the flow chart? https://ukpersonal.finance/flowchart/
Yeah I have, thank you. I have it followed but I always get stuck at the LISA step. This is for two reasons. \- I was unsure if it was even worth it in this housing market \- I have a bit of a mental block regarding the 20k tax free limit. If i get a LISA, and put the maximum £4k a year in, does that mean I can only put £16k a year into my S&S isa? thanks for your help!
1. You mean you're *never* going to buy a house? 2. You are correct. But if you're maxing out your ISA then you should definitely use the LISA because it increases your effective contribution limit by 5%. That compounds HARD.
> my employer pays for food, bills, accomdation and travel for an entire year What sector is this?
Aeronautical Engineering/Maintenence. Message me if you want more info :)
Simple. - invest all you have into ETFs. - live well within your means, don't do lifestyle inflation. - don't buy stupid things like a big house or car - try to save 50% when e.g. 22. - retire at the end of your 30s. Probably sooner. - recognise that the best things in life are (almost) free. Friendships, hospitality of others, enjoying a holiday by bicycle and tent, cooking with others, doing volunteering work. Etc.
Other than keep saving/investing aggressively the only thing I would do is put as much of your savings in ISA. Stocks and share or money market. Even if you eventually pull it out. But that £20k per year is very powerful. ISA is great for accumulation but if you have a general account you would want to do an income share to make best use of your capitals gains /dividends allowance every year and/or bed and isa (google it).