Finance advice for a 22 year old
Discussion
BJG1 said:
M94 said:
I get it easy at home. Cooking, cleaning, ironing etc. Is all done for me. I wanna get myself a decent house when I move out therefore I'm in no rush. I don't wanna be paying a mortgage for something that I'm not happy in.
Eurgh, f
k my generation. I don't see the problem with your lifestyle, M94. I'm sure some PHer will be along shortly to say he moved out at just 5 years old and earnt 8p a month but managed to scrape enough together to buy his first house by 7.
People are living at home into their 30s now to be able to afford their first property. It's just the way things are.
People are living at home into their 30s now to be able to afford their first property. It's just the way things are.
eliot said:
davepoth said:
Bung it all in your pension for a couple of years and you'll thank your younger self when you're wrinkly.
And your ex wife will be very greatful that you started planning for her retirement so early and will enjoy taking 50% of it when you divorce!
s
t. I don't know why I'm laughing.eliot said:
davepoth said:
Bung it all in your pension for a couple of years and you'll thank your younger self when you're wrinkly.
And your ex wife will be very greatful that you started planning for her retirement so early and will enjoy taking 50% of it when you divorce!
M94 said:
buy company shares(£50p/m) that are in a 3 year scheme.
Just a thought, but is there any option to increase this, assuming it's a Save as you earn scheme. These are usually risk free method of investing in the stock market. You either get your money back + possible interest, or can buy company shares and sell them to make a profit(if company share price has increased).With interest rates so low, worst case you've lost out on 3 years of interest, but still guaranteed to get your money back to use on a mortgage deposit.
M94 said:
Appreciating all the replies, all really helpful advice.
Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
You must have VERY understanding or clingy parents. £42k+/year and living at home does not compute (and neither does such a small pension contribution).Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
Sounds like you're doing pretty well though,.
johnfm said:
M94 said:
Appreciating all the replies, all really helpful advice.
Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
You must have VERY understanding or clingy parents. £42k+/year and living at home does not compute (and neither does such a small pension contribution).Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
Sounds like you're doing pretty well though,.
Everybody is different, if you want to move out at seventeen fine, twenty seven is fine too.
All (imho)
Wacky Racer said:
johnfm said:
M94 said:
Appreciating all the replies, all really helpful advice.
Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
You must have VERY understanding or clingy parents. £42k+/year and living at home does not compute (and neither does such a small pension contribution).Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
Sounds like you're doing pretty well though,.
Everybody is different, if you want to move out at seventeen fine, twenty seven is fine too.
All (imho)
I bring no trouble to my parents door nor do I give them any hassle. They don't have to be very understanding or clingy to have no problems with me at home at 22.
M94 said:
Wacky Racer said:
johnfm said:
M94 said:
Appreciating all the replies, all really helpful advice.
Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
You must have VERY understanding or clingy parents. £42k+/year and living at home does not compute (and neither does such a small pension contribution).Looking to move out in the next 2/3 years.
A few have asked where the money has all gone so far. I've just paid off a holiday which has taken a fair chunk of it.
Sounds like you're doing pretty well though,.
Everybody is different, if you want to move out at seventeen fine, twenty seven is fine too.
All (imho)
I bring no trouble to my parents door nor do I give them any hassle. They don't have to be very understanding or clingy to have no problems with me at home at 22.
That's a lovely wage for our age (I'm 22 as well, although my wage is nowhere near your wage).
Best advice I can give if save as much as possible while enjoying yourself. I'd be personally looking at saving £1200-£1500 a month towards a house deposit in a lifetime ISA.
Fair play for earning that sort of dough, keep at it!
Best advice I can give if save as much as possible while enjoying yourself. I'd be personally looking at saving £1200-£1500 a month towards a house deposit in a lifetime ISA.
Fair play for earning that sort of dough, keep at it!
johnfm said:
You must have VERY understanding or clingy parents. £42k+/year and living at home does not compute (and neither does such a small pension contribution).
I dunno - if he's anywhere in the south east then if I had parents living within commutable distance I wouldn't be moving out to see a huge chunk of my income taken up by rent just because I could. In fact no matter where the OP is, until he's got a deposit for a house together he may as well stick at home for as long as he/his parents can bear it!Agree re pensions though, tempting as it is to think 'oh it's years away, I'll not bother yet', that's exactly the wrong way to think about it. An extra 10 years of decent contributions at the start of the OPs career will make a huge difference to when and in what style he can retire. Plus if the OP is just in the scheme's default fund then see if there's something more suitable - I'd wager that the default would have a lower risk/return rating than a 22 y.o. should really go for. Lastly, as has already been said if the OP does pay any higher rate tax then shovel everything over the threshold into the pension.
Learn to be independent - financially (well paid job), emotionally (detached from parents - something I didn't do very well and left home a little too late), practically (learning to budget and working out how to solve problems yourself - difficult if your parent(s) are control freaks like mine).
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