What should i do with my savings??
Recently, i have been able to save some ££ as gifts from family friends however, i don't know if i should continue to save or spend it on new clothes and shoes.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
(edited 6 years ago)
Original post by Blackstarr
Recently, i have been able to save some ££ as gifts from family friends however, i don't know if i should continue to save or spend it on new clothes and shoes.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
If your Mum is asking you for handouts then it sounds like they can't always afford the neccesities so I d save the money for emergencies.
Original post by Blackstarr
Recently, i have been able to save some ££ as gifts from family friends however, i don't know if i should continue to save or spend it on new clothes and shoes.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
Ok, here is some of the best advice you will get. I have around £38-40K in the markets and am a hardcore investor myself. I would do the following....
1) Pay off any existing debts. You CANNOT get ahead in life if you are paying 10-15% in interest to someone else, while paying the minimum. The debt will accumulate and will be a burden for the rest of your life. You can make a lot of money being the guy lending out money at 10-15%, we will talk about that later. Firstly pay off all debts.
2) Set up an emergency fund. This is usually 3-6 months of living expenses. You want this money to be liquid and in a place that is virtually risk free. I do suggest you keep this in a savings account, even though the interest on it will be a joke, this money will be liquid and will be risk free.
3) Invest. Invest. Invest. I will label you as a defensive investor. Someone who doesn't really understand how the financial markets work and someone who doesn't really have the time or patience to learn. I advise a 30/70 split between corporate bonds and equities. Bonds being lending companies money, equities meaning buying ownership of companies.
On the equities side I suggest something simple like a Vanguard S&P 500 tracker fund that models essentially the US economy. On the bond side, a US bond tracker fund will do fine as well.
The reason we have bonds is to reduce volatility of the portfolio, equities can have a lot of volatility in particular during market crashes. This will soften the blow when the markets tank, while leaving 30% of your money free to withdraw if you so need it. It's not best to sell equities at the bottom of a bear market, so you have this cushion with bonds.
That is all you need to know. If you want to learn investing and be able to pick your own bonds and stocks, I do suggest you read up everything you can on Mr Warren Buffett. For now, you are set!
OP I must add this point as well, since 1983, the £ has lost 2/3 of its value due to inflation. So that means £1 in 1983 is worth around 30p now, in purchasing power terms. You will have seen a vast bit of inflation in your life as well, I remember buying Coca Coca 500 ml for 70p, now it is around £1.60 at the cheapest.
The only proven method of protecting against inflation is to invest in equities. Cash is most certainly not king and will erode vastly over your lifetime. Equities have provided a real return of 5% a year on average, this includes purchasing the bad and good companies over the last 125 years. Bonds have beaten inflation but around 1% real return, while savings accounts have generally failed to do that.
Any money you need 5+ years from now, should be in the stock market. 2-5 years in corporate bonds. Less than 2 years in a savings account.
The only proven method of protecting against inflation is to invest in equities. Cash is most certainly not king and will erode vastly over your lifetime. Equities have provided a real return of 5% a year on average, this includes purchasing the bad and good companies over the last 125 years. Bonds have beaten inflation but around 1% real return, while savings accounts have generally failed to do that.
Any money you need 5+ years from now, should be in the stock market. 2-5 years in corporate bonds. Less than 2 years in a savings account.
Original post by donkuu
Ok, here is some of the best advice you will get. I have around £38-40K in the markets and am a hardcore investor myself. I would do the following....
1) Pay off any existing debts. You CANNOT get ahead in life if you are paying 10-15% in interest to someone else, while paying the minimum. The debt will accumulate and will be a burden for the rest of your life. You can make a lot of money being the guy lending out money at 10-15%, we will talk about that later. Firstly pay off all debts.
2) Set up an emergency fund. This is usually 3-6 months of living expenses. You want this money to be liquid and in a place that is virtually risk free. I do suggest you keep this in a savings account, even though the interest on it will be a joke, this money will be liquid and will be risk free.
3) Invest. Invest. Invest. I will label you as a defensive investor. Someone who doesn't really understand how the financial markets work and someone who doesn't really have the time or patience to learn. I advise a 30/70 split between corporate bonds and equities. Bonds being lending companies money, equities meaning buying ownership of companies.
On the equities side I suggest something simple like a Vanguard S&P 500 tracker fund that models essentially the US economy. On the bond side, a US bond tracker fund will do fine as well.
The reason we have bonds is to reduce volatility of the portfolio, equities can have a lot of volatility in particular during market crashes. This will soften the blow when the markets tank, while leaving 30% of your money free to withdraw if you so need it. It's not best to sell equities at the bottom of a bear market, so you have this cushion with bonds.
That is all you need to know. If you want to learn investing and be able to pick your own bonds and stocks, I do suggest you read up everything you can on Mr Warren Buffett. For now, you are set!
1) Pay off any existing debts. You CANNOT get ahead in life if you are paying 10-15% in interest to someone else, while paying the minimum. The debt will accumulate and will be a burden for the rest of your life. You can make a lot of money being the guy lending out money at 10-15%, we will talk about that later. Firstly pay off all debts.
2) Set up an emergency fund. This is usually 3-6 months of living expenses. You want this money to be liquid and in a place that is virtually risk free. I do suggest you keep this in a savings account, even though the interest on it will be a joke, this money will be liquid and will be risk free.
3) Invest. Invest. Invest. I will label you as a defensive investor. Someone who doesn't really understand how the financial markets work and someone who doesn't really have the time or patience to learn. I advise a 30/70 split between corporate bonds and equities. Bonds being lending companies money, equities meaning buying ownership of companies.
On the equities side I suggest something simple like a Vanguard S&P 500 tracker fund that models essentially the US economy. On the bond side, a US bond tracker fund will do fine as well.
The reason we have bonds is to reduce volatility of the portfolio, equities can have a lot of volatility in particular during market crashes. This will soften the blow when the markets tank, while leaving 30% of your money free to withdraw if you so need it. It's not best to sell equities at the bottom of a bear market, so you have this cushion with bonds.
That is all you need to know. If you want to learn investing and be able to pick your own bonds and stocks, I do suggest you read up everything you can on Mr Warren Buffett. For now, you are set!
This rather is a bit extreme.
I am 19, i don't think i am in debt or owe anything to anyway which is a good thing.
I do not have a lot of savings either but investing is paramount.
but thanks for the reply anyway
Original post by Blackstarr
Recently, i have been able to save some ££ as gifts from family friends however, i don't know if i should continue to save or spend it on new clothes and shoes.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
If i continue to save(NOT SPEND ANYTHING), i do not know what i will be saving for as i do not need any major things because i am pretty content with what i have. Also, sometimes my mum asks me for some handouts which i don't mind but i would really appreciate if she didn't
However, a part of me is torn between saving for important stuff like driving lessons or when i am in a financial crisis.
I feel like my parents should provide me with necessities such as clothes and shoes but when it comes to driving lessons i should be able to fork something out for myself to begin with?
I do not work so saving is somewhat crucial for me as i sometimes feel guilty spending even if its on vial stuff.
I know i do need to get a job so that is a work in progress at the moment.
So, any advice?
Do you normally save money from work or friends and family and for how long?
What do you normally do with your savings?
I need some words of wisdom right now because i do not want to regret spending it nor do i want to regret saving it.
My general rule with saving money is keep saving until you know what you want to spend it on. If you don't know yet, there probably is't anything worth it.
Original post by Kindred
My general rule with saving money is keep saving until you know what you want to spend it on. If you don't know yet, there probably is't anything worth it.
True.
My short term plan of saving was to buy new clothes and shoes.
I still do not know my long term plan
Original post by xxJazxx
Definitely save.
It doesn't sound like you really need (or even want) to buy anything, rather you just feel like you may as well since you have the money available.
It doesn't sound like you really need (or even want) to buy anything, rather you just feel like you may as well since you have the money available.
I agree
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