#FinancialAdvice #InvestingTips #SavingsStrategy
Hey everyone! 👋 I’m a 24M looking to up my savings game and make smarter investment choices. Here’s a breakdown of my monthly budget and current savings/investments. Any suggestions on how I can improve my financial strategy?
💡 Monthly Budget:
– Rent: £785.00
– Pocket money: £150.00
– Bowling club: £36.00
– Gym: £32.00
– Football: £28.00
– Broadband: £26.00
– Phone internet: £23.36
– Haircut: £20.00
– Spotify: £11.99
– Monzo extra: £3.00
– iCloud: £2.99
– Total Expenses: £1,118.34
💸 Net monthly income: £2,317.02
💰 Money left: £1,198.68
📈 Current Savings & Investments:
– Savings: £11,800.00
– Crypto: £7,200.00
– Pension pot: £6,914.50
– Stocks and shares ISA: £680
I have some excess money each month after expenses and already have some savings/investments. I enjoy travelling twice a year, which is important for my mental well-being. Do I need to cut back on this to invest more? Any tips or strategies would be hugely appreciated. Thanks in advance! 💪
Possible Solution:
– Consider setting a specific percentage of your monthly income for investments to ensure consistent growth.
– Look into dividend-paying stocks or low-cost index funds for long-term investment opportunities.
– Keep a separate emergency fund for unexpected expenses to avoid dipping into your savings or investments.
If my parents ever asked me for that much percentage of my salary for rent when I was living at home I’d have fucked off (unless they’re struggling financially and you’re helping them rather than “contributing”).
£785 rent to your parents, wow. Especially on your modest salary
A bit confused by this pocket money line item, what exactly is this? It’s just random fun spend on credit card?
None of these items are excessive aside from the rent, I would be looking to move out. I would sell off the crypto and put it in the SISA
What’s your pension contributions as a %?
I’m no expert by any means but you look like you could be taking advantage more of your ISA. Each financial year you got £20k allowance which any gains are tax free. I would potentially look at move from the crypto to the ISA as more of a safer bet
Damn, your parents fleecing you a bit
Everything under pocket money should be considered pocket money.
I don’t think you should bother reducing any of the things on that list because they’re pretty much okay. Rent might be high but not gonna say anything more about that. Gym and other bits might be high but they’re lifestyle choices that you make.
I think you’re at the point where you’re settled enough that and you’re not sure what to do next. Honestly, there’s not much more to do other than give it time – time for things to compound with savings and investments. If anything, I’d look into where you’re money’s saved and invested to make the most out of it.
Travelling 2-3 times a year is fine, especially Europe with how it can be had for a decent price. Keep that on your list of things you’re going to do this early in life, as you’ve got the capability to have a solid foundation for investments to compound for many decades.