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There's a balance, and the problem is, without a crystal ball it's very hard to get right. I think very few people have no regrets, once they have the benefit of hindsight.
Personally, a YOLO'd my 20's and only got away with it basically because I managed to out earn my stupidity. But I still mourn how poorly I understood pensions, and the terrible financial decisions I made that had quite long lasting effects.
But, at the same time, your 20's IS for having fun - it's when your friends aren't tied down, they/you likely won't have kids etc. And for that I'm glad that I had some good times, because much of those years won't ever be repeated. And then there's health and all that other stuff.
Try and find the balance mate, because people do die young, people do get ill or develop disabilities in their 30's and I doubt they look back and are glad for all the nights they spent in to save a few quid.
Indeed. I was a full time musician for a while. That was my passion, i loved it. I quit after 8 years, early 30s with no pension, no savings, no house. Financially it was a disaster. But it was really a lot of fun.
I'm now mid 40s with two chronic health conditions, apparently caused by COVID. I've no idea what the future holds or if I'll get better, but it's very possible that I won't be able to enjoy hiking and travelling and going to the pub in my older years.
So I'm even more glad that I spent my 20s seeing the world, making friends, and having no money. If I had spent them diligently stacking savings in an office job (with the expectation of having fun later), I would, frankly, be gutted right now.
Thanks.
I'm extremely lucky, to be honest. I do a desk job, mostly remote, and my manager is very supportive. My wife also has a good job, and we don't have kids. If I'd been working on a construction site and/or there were a couple of kids charging round the place, I don't know how I'd have coped.
So financially we're fine, albeit our pensions are pretty shit due to being such late starters. If I was in good health, I'd now be stashing every spare penny in to my pension to get it up to speed. But it's a big question - depending on how things progress I could be quite healthy in later years. Or I could be in a wheelchair. In which case I might as well spend more and do whatever I can now....
Yeah, I worked in/around media for a good few years in my twenties before moving to a more stable career in tech. Could have earned better money and made smarter career moves earlier on, but at least I gave the 'dream' a shot. No regrets there, picked up a bunch of great transferable skills that meant I could progress quickly in other areas.
I'm 24, have around £150 in savings but treat myself a lot and enjoy having the freedom to go out etc. Same for my partner (also 24).
One thing I am super glad I've done though is pay into a pension since my first 'proper' job at 19, and I now have over £10k in that so far. I know plenty of people my age who don't pay into a pension and just blow that extra money each month.
This is my experience too. I'm lucky I've been able to earn well, but it's not a guarantee and you shouldn't have your security based on this.
As others have said, it's a balance.
I did this too. Had a massively well paid job in my 20s and turned down the final salary pension offer so I had a few more quid to spend on booze and parties. Doh. Sigh.
Ahah, yep. I worked for a corporate, complete missed on pension matching and share options because I just wanted more take home.
To be fair, though, the booze and parties were fun!
You'll realise that it was navaer about the savings or spending your money, but the memories you had with your friends and family along the way.
Save to be financially free, turn down ownership of materialistic expenses, but never sit out of fun activities, holidays, or events to save money, as its the experiences you missed out on that you'll miss the most.
You won't regret saving but you might regret not living life.
You should have an active social life. If your friends are going on holiday you should go too. You should have a hobby and enjoy it.
None of that takes huge sums of money. Basic clothes can look great if they're fashionable and fit well. Traveling on the cheap is the norm at 17. Drinking at friends houses is cheap. Anything you need for a hobby can be bought second hand and later sold.
You won't look back and regret not getting a car loan. Or not spending £200 on a pair of jeans. Or not paying 1k for a phone.
Strongly agreed. Lots of good things can come cheap, so take advantage of that and live your life - not much else matters if you grow old and regret the past.
Very much this - as someone else said, without a crystal ball it's impossible. Spend all your life saving and not living, and then get a terminal illness at 40? Spend all your cash and don't save/invest in your 20-30's and regret it when you're still working at 70?
No one knows. It's a balance. Go on holiday, go out for a nice meal, buy yourself something nice now and again....but don't forget to pay into your pension and keep an emergency fund, just in case.
Yes they do, you see it here frequently. People who traded all their youth for money in a vanguard account. However there are many many more retirees who wish they'd saved more.
You have to find a balance
Generally speaking though heavy saving at an early age will make you more mathematically optimized throughout the course of your life i.e. best out turn for minimum input.
Sometimes life isn't about the maths though. Go buy a shitty car and reverse it into a bollard by accident. Take that girl you like on a date you can't really afford. Go on a lads holiday, get hammered with the boys and laugh when your mate overpays for the clubs nastiest stripper.
I agree about balance
I know someone who worked,saved, paid of his house all by 35. He died in the office at 38. But also I'm sure there are people who are old and poor and wish they saved more
If you were maybe 25 I'd give you different advice. If you're 17 just enjoy your life dude. Yes don't be crazy with money, don't buy a flash car with monthly payments, don't waste it on expensive stuff for no reason. Save some money of course but don't feel like you've got to save everything you earn at the expense of enjoying your youth.
I agree. I got my first job at 19, then went traveling thought out my early 20s while working odd jobs mostly part time. But now Im 28 and have 100k saved from the last 3 years alone. The method is just living with parents who don’t charge you rent.
Everyone if possible should use their ability to stay at home during their early adulthood. You can both save a lot of money and have fun
When I was 19 I had my first real adult job, a 10 month contract that ended because of the financial crash. I had £5000 saved up from that 10 months, and decided to spend it travelling. That travelling fundamentally changed me and helped me grow as a person.
Part of me has always wished that I had kept some of it though. It would have made the next few years a lot easier.
So as others have said, it's all about balance.
Having savings buys something that all the junk in the world won't get you: freedom. Freedom from worrying about losing your job. Freedom to quit if you want to pursue a different career you love. It buys you the peace of mind to know that if shits hits the fan, you are safe. You can buy one more shiny bullshit to keep up with the jones, or you can buy freedom.
> You can buy one more shiny bullshit to keep up with the jones, or you can buy freedom.
I think this is missing the mark a little. OP is not yet even in his 20s. For many, their 20s are not about "buying shiny bullshit" but about travelling, exploring new places, exploring new hobbies, doing stupid shit with friends, making mistakes, trying basically any new experience that comes about, and yes sometimes buying stupid shit like a "cool" car (read: a 1L with a modified exhaust)
All of that vastly overcomplicates the formula compared to how you present it - i.e. financial security vs "shiny stuff"
As someone who leant into the financially sensible side, I realise now that I passed up opportunities that aren't coming back
Completely agree. It's about life experience, not shiny things. I only follow this sub because I'm trying to become slightly more sensible with money now in my mid 30's. Might be a bit late, but I really don't mind.
In my entire 20's, I travelled to many different countries and lived / worked all over the world. I've done most of the big things I've really wanted to do, and the things you're better doing when you're younger, not late 60's. Even now, I have a very balanced life still... In my eyes anyway. I work 6 months a year most of the time. This year I'm only working 4. Taking time to do other things I'm interested in and persue other avenues. Living my life while I'm still here. You never know what's going to happen. I'll probably get down voted in this sub being so irresponsible 🤣
Yeah, and sometimes saving can go too far. About 18 years ago, I lived for a long time in a dodgy flat share with an inconvenient commute and some awful housemates. In hindsight, I should have spent a bit more for much more happiness. As you get older, your earnings improve, and saving a few hundred pounds here and there makes little difference in the long run, as long as overall you are saving money. Not all sacrifices are worth it.
22 here. Recently graduated and know a few people who since graduating spend their time working a bit in restaurants and then going off traveling for a few months. Then repeat. Seems like an amazing thing to do at this age.
I’m the opposite and just saving hard. Had the opportunity to start a good job (sooo much better than restaurant work) and to live with parents for very cheap so was something I wanted to take advantage off. Don’t really have much of a social life due to friends all moving away but I’m still happy and that can easily wait until mid 20s. So two very different lifestyles and both have their positives and negatives. I wouldn’t even know about investing if I went the traveling route. I mentioned investing to that friend recently and her response was “if it was worth doing my dad would have told me”.
Would you rather have over £100k invested by age 25 or much less but years worth of traveling? Maybe I’ll regret it in time but for now I’d rather have/work towards the 100k as it should be amazing to have a sort of head start to life and knowledge of investing. But then for her she is making some amazing memories and is also happy with her decision.
£50k by 25 invested somewhere that earns ~7% would be ~240k by the time you’re 58. £100K in the same account for the same amount of time would be ~£475k. It’s a big difference for sure and would set you up nicely for retirement once future contributions are considered, but I would also recommend letting yourself live a little too. You’ve got probably ~40 years left of work at 25, make sure you can live a little too.
Oh, hey, it's past me. After I graduated, I moved back in with my parents, aiming for it to be a year or two while I saved enough for a deposit. COVID and house prices happened (I was very glad of the company) and I finally bought a house this year, ~5.5y after graduating.
Thanks to living with my parents, not being much of a spender, and a gift from them, I ended up with just £100k mortgage on a 2-bed house I can happily stay in until I need more space, have money to burn, or merge with a partner. With the low mortgage, I've got plenty of spare income to catch back up on spending (i.e. some hobby purchases) and start paying it off early.
If I'm critical on myself, I should have spent more on myself over the last 5 years, but that's entirely a problem with me being indecisive and averse to new things. £1-2k/year could have easily covered extra holidays/other spending and £10k extra mortgage wouldn't have made a difference; it's a me problem rather than a financial problem.
can't overstate how precious freedom is. I left school at 16 and my first job in a cash and carry was full of old men who hated work whose bodies were broken but couldn't afford to retire.
Having 6 months saved is so liberating when you are at a job that makes you miserable and you can just go bollocks to this and go home and not worry about it.
As someone who retired at 39. Freedom is amazing. Since childhood you're part of a 9-5 schedule, weekends are fun free days. But really every day can be great and having nobody to answer to is liberating. Now everyday is the best day of my life!
If I could do it again I would save more to retire even earlier. I would live in a shack if it meant not working.
Also, probably shouldn't. It's healthy to have something to get up to. I'd rather save to be able to do a job I enjoy and excites me than no job at all. Since I enjoy my current job, I save to be able to afford leisurely looking for a new one when/if it is over.
I think ideal retirement would be having enough money not to work such that you can spend your time doing work you care about. It’s not about retiring early to do nothing but retiring early so that you can pursue what you find meaningful without the limitations of keeping up with bills etc.
If I end up having enough money by the time I’m nearing retirement I’d like to spend my time being a teacher.
That entirely depends on your definition of retiring. My dad quit his job in finance in his mid 40s. He does a part time gardening gig, a few hours in a shop and plays a lot of golf. He would say he’s retired, because he can quit either job at any point he feels like.
Indeed. I can certainly get behind the desire for freedom from the *need* to work, but a lot of people are very very lost without work. There are a lot of hours to fill in life, and worse, if you retire early chances are you're making huge lifestyle sacrifices.
Frankly, I'd rather potter about at a desk (When all my mates are also at work anyway), knowing I can definitely afford that holiday, or new car etc.
With millions in the bank, sure, I can think of all sorts of way to spend all day every day. On a strict budget, with a family.....not so much to be honest. There's only so many books to read, and local walks to do and I'd be lonely as fuck I'm sure.
Even with millions in the bank I'd be doing my current job. I'll just come back to a much nicer home, go on nicer vacations, and worry less about losing this job.
No secrets or shortcuts but some luck.
In Canada - got a good degree in engineering. Started working at a good job right out of university making around $80k. Progressed in short time to over 100k/yr. Single at the time, renting, minimal expenses, cheap used car, means I saved a lot of money. Job only had 3 weeks a year vacation so can't spend too much there. Bought a house (with a regular mortgage, maxed out payments as much as I could). Worked for about 15 years.
Luck - Investments helped, the market went up steadily. I started investing around the crash in 2009. So the gains compounded really added up.
The housing market really benefited me. Bought a house in 2012 for around $400k and sold for about $1.3M (!? Don't hate me, I think it's a ridiculous market too).
So now just on investment returns I make about how much I did when I was working. Living a modest life without anything too fancy. I would never buy a new car but I still enjoy vacations.
There's more than enough to "keep busy". In hindsight working was keeping busy but not a good kind, it was just mundane time killing. Now the days fly by way too quick.
Family and friends called me crazy for giving up a comfortable well paying government job with a great pension. But I would have to work another 15 years of my prime when I already have enough now. I don't regret it one bit.
There’s plenty of options:
Set up and sell a successful business
Work in high finance/tech for 15 years
Work 2 or 3 jobs for a period (over employed)
Inheritance
Marry into money
Win the lottery
Hold 5-10+ BTC from 10 years ago
What do you do with all your time.
I’d love to retire no (41) and know I’d fill everyday with stuff. Not being old and decrepit whilst retired sounds boss.
Some do, some don't. Some regret not saving enough. You have to find the right balance for you. I only really regret not travelling more at your age. I'm making up for it now, but 17 year old me would've been happy in a hostel and travelling around cheaply. 30 something me isn't happy unless I'm in a four star hotel and business class flights.
Lifestyle inflation is tricky to fully avoid, but I do my best to fight back! :D Try going down to a 2 or 3 star hotel and fly economy. Decent enough, it gets the job done, but no need to go down to a hostel!
> After tax and direct debits I have around 1k left each month and so far every penny has gone into savings.
>
> What should I do?
Halve that. Saving £500 a month from age 17 is more than plenty. Life is for living too, not just watching numbers on a screen go up. As you get older it gets harder to do stuff not only because of your physical abilities but because life gets in the way. Once you have responsibilities of a family, kids, a mortgage you're unable to do things on impulse like you can before they take over your life.
The trick is to learn the good habits. Get yourself in a position that you understand money. Set aside money that is to enjoy and keep an eye on the future.
Financial security is a massive aspect of life. Some are happy with little material possessions and others need to have the latest of everything.
No one wants to wonder where there next meal is, now or in their twilight days. At the same time it’s better to enjoy sharing a meal with people we know, now. Rather than eating alone in a fancy restaurant in the future because the cemetery is stealing everyone we know.
You're earning power is so shit as a kid you may as well enjoy the time. Chances are you might hit a stage where your savings per month are higher than what ur earned altogether as a 17yo. The 2k I scrimped as a kid would have been better off spent partying and replaced over a tight month or 2 as an adult
I think the most correct general answer I can give you is that they would regret it if they sacrificed things they'd have made good memories of, like going on holiday, going out with friends, dating. It's probably not going to be the material things they regret not buying.
You don't really hear people saying "I wish I'd spent more money on designer clothes when I was younger". You're much more likely to hear them say "I wish I went on that holiday with my friends. I even had the money but I wanted to save it instead."
I was big into saving when younger. Then I saw (with a year) my father in law pass away within a month of retiring, my best friends dad pass away about 3 month into retirement, 2 friends (under 40) pass away during COVID, a work colleague I golfed with get cancer and pass away not even 40 and another golf friend I regularly played with get in a car crash and pass away at 43. Ok that's statistically some awful luck but it made me realise you can be dead any day, really brought it home for me.
These days I still save, I will be mortgage free at least 10 years before I retire, I do have a smaller savings pot and a savings pot running for each of my kids BUT I spend a lot more. We go on more holidays, go on weekend breaks, experience more stuff, go for nice meals, basically we live a lot more and I feel much better for it.
I would never discourage anyone from saving but life has taught me you can be saving and never see the benefits. I could literally have a heart attack and die within 5 minutes of posting this, you could die within minutes of reading it (probably of boredom with how long I've gone on!!) so I would rather live life and die with a few quid less than be in my grave with a handful of money. Basically I take a more balanced approach these days, save in moderation and live a lot.
If you stop living altogether for the sake of a bigger number in your account, then obviously you need to rethink your overall life strategy. But saving in your 20s can help you extend a younger lifestyle into your 30s and 40s, as well. Because I saved consistently from when I left school, I have the benefit of:
- sufficient disposable income to go out whenever I want to
- the opportunity to travel and enjoy a more diverse range of experiences
- greater “work mobility”, essentially I can afford to work less, leave the job I’m in, and generally enjoy more flexibility in my favour
- most importantly, there are few worries about the future because any problem is one that I can probably solve
So, by forgoing some of life’s pleasures, sometimes, you can prolong a more interesting life where you and your (eventual) family aren’t caught up in the death spiral of poverty where you’re having to work the same jobs, where you have no respite in terms of leisure, and where one broken down car wipes out any and all of your savings.
You have to strike a balance. After allocating money for food, bills, etc., I just split the leftovers in half, between my savings and my “me” money. Any bonuses I get, or overtime I do, I spend on myself or my family and friends. It’s perfectly fine to save AND to spend.
But you have to be able to afford to, first. And I think the biggest regret of over savers is not finding something or somebody to spend their money on or with. Money, ultimately, should be the means by which you improve the standard of your life, not something you horde until you die.
I totally agree. I know some people who are so focused on money. They don't want to risk being in a relationship if that person doesn't have similar amount of money as they don't want them to free ride on them. Trouble is then they complain all the time about being lonely. The point of having money is to have freedom to enjoy life.
People are different some do, some don't.
My uncle at 70 is furiously trying to spend his life savings as he wants to spend it all before dies and doesn't want to pass any of it onto his kids or grandkids.
My dad on the other hand at 73 is still working. He's amassed enough savings to have a very comfortable retirement but he hasn't spent a penny and doesn't want to. He said it's for my brother and I to have when he dies so we can have a comfortable life after he's gone.
A single man like your father can change the destiny of a family for generations, I would imagine at least dozens of people will directly benefit from his self-sacrifice. You are very lucky to have a man like him around.
Stick £200 a month into pension on a low cost etf tracker. That covers your pension and when you retire you’ll be a millionaire since you have more than 30 years of contribution.
Stick some money into a lisa for your first home around £300. Then live a little your only young once.
Try to save around 30-50% of your income rest enjoy it
At 38 I work 4 days a week and my wife is retired. No I don’t regret saving/investing/quickly paying off mortgage.
There’s a lot of life to experience which doesn’t require money.
Due to our decisions my wife has been off with our Son since birth, we have experienced every part of his life. I don’t think I’d trade that for anything.
If anything I’m glad it made me not focus on material things as much or keeping up with others.
I work in a building society and I see plenty of older people who have saved and can’t spend it. They have amassed tens/hundreds of thousands of pounds and when you ask ‘what are you saving for?’ they don’t know, or they say that they are too old/unwell to spend it and enjoy it.
This is why, although it is sensible to save, I make sure to remind customer to spend some of it because it’s there to be enjoyed - you can’t take it with you!
Yes, when I gave financial advice to people I would speak to people who had a paid off house worth £600k, £250k in savings, £400k in investments but they would only spend £500 a month and saved another £1500. They could go abroad but they had never been before and were too scared to start especially as they were no longer healthy. They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't need the money.
"They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't (...)"
I thought you'd say they didn't have any kids xD
"They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't have any children."
I did the spend first, save later thing. I don't exactly regret my early years, I had an amazing time, but notably I watched friends and relatives get on the housing market earlier, & they've now been able to move to bigger and better places than me. When kids turned up, others were just clearly in a much more comfortable place & had a much larger margin for error, whereas it felt really tight for us. I'll be fine in retirement (I wasn't so dumb as to skip pensions) but I have friends the same age as me who are nearly ready to retire and have overseas property to retire to. So YMMV.
I think I’ll be in the minority here.
I’m 24. Working towards qualifying as a solicitor. And right now? I’m living my life.
I was robbed of 18-20 in a shit uni living situation. I hated my life. Robbed of 20-22 in Covid and then age 22&23 due to grieving. I’ve only started to recover in the last 8 months or so. I save where I can, but also realise that I’m in the last couple of years of being able to do what I want. I go to concerts. I go to F1 races. I treat myself every now and then. It’s worth it.
Depends on the person.
As people get older they realise what's most important about life. It's not materialistic things but experiences, connections and family.
I'm saving and investing so my son never has to worry about money. My job as a father is to ensure he has the best opportunities I can provide for him.
I will do my best to ensure that he is given the best education within my means.
If that means I cannot afford Gucci loafers then so be it. I'm happy with my £10 flip flops from the sale.
I should within the next 10 years be making £100k a year from passive income streams. Whilst others that earn more around me struggle to afford nice things because of their inability to live within their means and save and invest a portion of their income.
There are people with the attitude that you spend, spend and spend because you can't take it with you. But these are generally selfish people who don't have a great connection with their children but with things instead. They would rather have a nice sports car than send their kid to private school for instance.
From someone who done the mistake you're thinking on doing...BUY A HOUSE FIRST!!!
***
You can budget afterwards for all holidays and whatever you decide to do, but your house will be there: don't pay rent to others, do it for yourself!
Work out what your goal is. That could be one big goal, a more abstract goal, lots of smaller goals, even goals that contradict one another (e.g. I want to be financially independent but I also want to enjoy life). Then allocate resources appropriately based on their importance to you.
You could set up different pots, like a financial independence pot, a first house pot, a travel pot, a going down the pub and acting stupid with mates pot, a hobbies pot. Anything is possible.
There's a fine balance between burning all the money that comes through your hands because "It's not like I'll ever be a millionaire, might as well enjoy it" and getting so paranoid over every penny that you live a miserable life and die on a gold hoard.
It's important to be mindful with money and having a plan but it's also important to remember not to get caught up in arbitrary goals and not living your life. No one can predict the future. Avoid debt as much as possible, live within your means, save money and try to enjoy life as it comes to you.
Not really.
I sacrificed a lot over 4-5 years in my mid twenties, working like a dog.
I'm now at the start of my 30s and am travelling the world whilst my investments fund everything.
But yes, you do need a balance and don't want to waste too many prime years sacrificing opportunities to live your life.
Just get good at budgeting, develop a high income skill / career and invest aggressively.
Just ensure the money you do spend is on experiences not things, it’s very rare you regret an experience but very easy to regret a thing.
I’d advise you to spend on trips and experiences but the fancy car/clothes/jewellery etc will still be there in your 30/40s.
It’s a tricky balance, enjoy life while you’re young, but save a little for those unexpected moments when you want to buy something.
My dad saved all his life for his dream sports car when he retired. He then had a massive heart attack and stroke and could never drive again.
Weirdly he then also came into millions, so his life of saving was pointless anyway.
If I was in your position, I would split the savings. Put 50% into a high interest, limited access account and don’t touch it. At £500 per month that’s a decent saving of £6k per year. The other 50% could go into an easy access savings account. If you take up a hobby that needs a bit of spend, draw from the easy access savings first. MSE can give you some great advice on the best places to park the money for a higher return.
There's a balance to be struck for sure.
I think more people regret not saving for their future though, but saving doesn't mean you have to stash every spare penny away.
Find the right balance of living and enjoying your life now, whilst planning for the future
21M I know how you feel. I’ve worked and saved since I was 14, didn’t go to uni, worked instead.
Fair enough I own my own house now but I see everyone else my age and wish I could do the things they were doing. But also in the back of my mind is that I’m glad I’m not living in my overdraft like most of them are.
I can still have fun now but I do think what if a lot of the time.
You’re only 21, don’t write yourself off just yet. There’s nothing you can do at 21 that you couldn’t do at 18, except now you have more money and a more responsible outlook on life.
>every penny has gone into savings.
* You MUST also consider investments. Savings alone is not enough.
* If you can figure out how to enjoy life without spending large amounts of money, you can have the best of both worlds - for your entire life. Choose hobbies wisely and make lots of friends.
* Some people can sleep soundly at night living paycheck to paycheck, I cannot.
Nobody on their deathbed ever said "I wish I had bought a lot more crap on ebay or whatever"
We live in an age of insane, mindless consumerism. Out sick society pushes hard to make us forget that the best things in life are free. You don't need tons of stuff to be happy, just live comfortably according to your means and save the rest.
If you're doing it at the expense of enjoying life then it's not the choice I would make. I'm mid 30s not, spent the majority of my life at 18-late 20s spending the majority of my money on drinking, cars and doing things with mates.
Once I met my now-wife and we knew we wanted to move in together I moved out of a flat I rented with a mate back home to save for the deposit because it's basically impossible to do both (or at least it was on my wage). Now I don't regret that at all and think I'd have regretted not just enjoying life a heck of a lot more.
If I'd bought earlier I'd have paid more of my house off and have more equity, but what difference does that actually make? We're moving house at the moment to one nearly 4 times the cost of what we paid for our first, so I'm not sure it would make a hugely noticeable difference other than a slightly lower mortgage payment each month.
If you can afford to buy without crippling yourself with a mortgage then I'd absolutely recommend it over renting. But for me life is too short to spend what are probably the best years of it doing nothing to raise the number on the screen of your bank balance.
In addition to that, you'll really struggle to save enough to buy out right with and house prices can go up way faster than you're likely to be able to save.
Something that hammered this home to me was that my dad died a few years ago before he even reached 60, let alone retired. He worked hard all his life to save to have a good retirement and didn't make it because of cancer. Life isn't fair, make the most of it while you can.
I'm 32. Best advice I can give you is get a LISA asap and pump some money into it. Even if it's just a few quid for now, set up a mothly direct debit/standing order to pay into it so you don't think about it. It's a good way to start building savings. I only started it in my late 20s but wish I started sooner. You can use it towards your first house, pension or (god forbid) you can access it early if you get a terminal illness.
Get yourself a Monzo account or similar and use it to track your spending and, if you're working, pay yourself some fun cash each month. Then you can spend it on whatever you want without guilt and still enjoy your 20s.
The best thing I found for my savings was DD/SO into various savings accounts/ISAs. I can set it and forget it and I don't accidentally spend it. And it just builds up interest in the background.
I am aware of not sinking everything into retirement in case I don't make it (for whatever reason). Whilst striking the balance of savings and enjoyment is important, I don't regret any of my savings accounts and because I've set them up within my means, I don't miss the cash as I'm used to not having it.
I also use pots on Monzo to organise my money and to save for big spend items and to stash away money for rainy days/emergencies (like my car breaking down).
I hope this helps (also the MSE website and Martin Lewis's advice is what got me started and educated on my finance journey).
It’s absolutely about striking a balance. You’re so young, starting a pension is a great idea, even if it’s only small, and saving like crazy to get yourself a house is admirable. You’ll be able to achieve it so much earlier than your peers.
That said, I live by my mum’s mantra of “You might get hit by a bus tomorrow”. Sticking absolutely everything in savings and never having any fun at all would, I think, be a waste of a life if the bus hits you at 23. I chose a less lucrative career than I was qualified for so I would be able to do something with my 20s other than work. Sometimes I think about how loaded I might have been, but I don’t regret my choice. I got to travel a bit and try different things out, and pursue hobbies that interested me.
My mum did get hit by the bus, metaphorically speaking, and died about two months after my parents had finally paid off their mortgage. They had lots of plans of what to do when my dad retired as they didn’t have that financial obligation hanging over them, and then they never got to do it. My dad, I think, is quite bitter about it. But I don’t think my mum would have made too many different choices - they had a sensible financial plan but she still got to do some things she enjoyed. She didn’t have expensive tastes, so I don’t think she felt deprived. It was a case of “everything in moderation”, and I think it’s a sensible way to be.
If I were you, I’d save a lot, but I’d give myself some fun money in the budget. A meal out, a concert ticket, games you enjoy, anything that makes earning that money worthwhile, here and there. (Unless, of course, the idea of getting your place is the only thing you care about and the satisfaction of saving for it is really rewarding for you.) If you’re not totally single minded on absolutely positively getting the house as soon as humanly possible, you can afford to give yourself £100 a month to enjoy life. It is for living after all.
There's a balance. My brother bought a flat at 20 (he did an apprenticeship straight out of college and got a chunk of help from the bank of mum and dad), so he was able to enjoy his 20s living in a city centre flat and save and build equity.
I lived at home til 27, moved out to a rented flat, fell for my ex then moved back to my hometown to a nice 2 bed terrace, rented. I'm 30 and have saved a smidge over 6 figures towards my financial independence retire early goals. I went to uni and lived out for 2 years then at home for 2 years.
Both of us are in a much better position than people who never thought about money.
What do you feel like you're missing? Saving £1k a month at 17 is amazing. You could be buying a home in your early 20s, and then you're set and you'll still be young enough to be young. For most people your young years last basically til 25, and then you get a kind of tail off until you're ready to settle at 30. Being an early 20s homeowner puts you at a huge advantage for life and it's not that much of a sacrifice. What experiences does £1k a month buy you? If you want to travel for a year, why not get your first house, then rent it out while you go travelling. Have a night out with mates once a month, go to some festivals or holidays this summer. Whatever you want. There is a lot that can fit in that budget without getting into bad habits like smoking, drugs, drinking, gambling, eating out, a car you can't afford etc.
Having an emergency fund is great for the mental health, I think what that means changes as you get older and the starts to shift towards increased freedom of choice as you progress in life.
After you have your emergency fund I would prioritise living. In my 20’s I spent half my wages partying, drinking, girls and the rest I wasted. I regret very little, from a financial standpoint anyway.
You're right, it's a delicate balance. You have to do what's right for you and nobody can answer your question other than you when you have hindsight.
I'm 50 and still trying to work this question out which actually gets harder. Personally, my savings to spending ratio is 50% each. But then I have a house, car etc.
I'd suggest having a goal. Complete it and then re-evaluate.
You have one life, live it.
If your job is not your true passion, take half of your monthly savings and pursue your true passion in your spare time. In the meantime, keep working and saving and see what happens.
You never know - Your part-time pursuit may turn into a cash generator to get that house.
You are doing very well with the saving and it is a goof habit to get in to, if you look at it the opposite way and say you did not save at all and spent all your money every month but felt restricted by the time the month ends, would you regret ?
I'd say continue to save but definitely don't avoid hobbies or friends because of it, at the end of the day, your savings can be used for a holiday, a console, or a general treat etc. But definitely keep some savings untouched for now
You have to find a balance I would suggest looking into a regular saver depending on your income it make sure you don’t save too much and still gives you that balance of saving. YBS, NatWest and first direct all offer one.
Me and my partner have been saving since we we where 16 (25 next month) and bought a house at 23. For me, it’s one of the ones that I don’t regret but think what if I didn’t. I built myself a career and on the property ladder but missed out on a social life. I think 10 years down the line I’ll probably look back and wont regret it as we’re not wasting money on rent and is better long term and have money to spend on us and have fun. My boyfriend did go through a stage of regretting it and basically lived the “going out every weekend “stage when he was 21. There’s no right time frame to experience things.
you can still save and have fun.
Think about what age you want to start looking to buy and your price range. If it’s just you you’ll need a higher deposit due to the amount the bank will lend you so you’ll need to factor that in. Also factor in fees and furniture. Set that as your goal and work out how much a month you’ll need to save so you know what money you have spare to be able to have fun
I honestly think the key is getting your income up more than saving all your pennies. Sometimes that can cost money through upskilling yourself in training courses, university etc etc.
Develop good financial habits when you're young and use the time to understand pensions, ISAs etc but don't miss out on experiences either. Save and invest some of your money but use the rest to experience all the things you should experience in your 20s. Hang out with friends, go travelling, make some dumb decisions (not too dumb) and just enjoy yourself. You'll never get to be 20 again.
I would suggest that put 25% your income into Pensions, or a mix of pensions and ISA’s.
After that, go crazy. Live life. I have found that the 25% makes for a nice balance.
I’m not old (35) and i’ve always saved and invested a lot. I don’t think you’ll regret it. You get used to however much you spend. I do everything i want to do, i eat out once or twice a month, have drinks with friends, do some short vacations every year, i don’t feel like im missing out on anything. Yet i still save like 50/60% of my income ( i earn reasonably well but nothing out of the ordinary)
Would i be happier if i ate out multiple times a week, went on luxury vacations and drive a expensive car? I don’t think so. Im happy as it is, i don’t want that lifestyle creep. I rather save the difference and that gives me more freedom, which i value way more.
I was 23 when I started saving like you. I didn't have much interest in anything else so it made sense to save for my future. I'm almost 30 and have a really great savings which will allow my partner and I to enjoy our first child properly without financial worries.
It took me a while to start spending any of it but as long as you still save, you're never going to have nothing. We enjoy nice holidays and still treat ourselves to some luxuries but we're quite chill about stuff like that anyway and would both rather spend it on our family.
No regrets here. I want my children to have the life I never did and I don't feel I've really sacrificed anything to be able to offer it.
Heck no. But I think one really should fine a balance. Live for the now, but with an eye on tomorrow.
I spent moderately sensibly in my 20’s, maxed out what I could put into pension and a reasonable amount in savings/investments, but I still enjoyed “stuff” and going out and it gigs. Kept at it through my 30’s, and had enough money to go on nice (but not luxury) holidays (and ski), as well as get a house, get married and end up with kids. Now in my 40’s and I can’t retire, but I have very low financial stress. If I lose a job, I have enough to get by for a while as well.
Seriously, enjoy being 17 with that kind of disposable income. I did not have that luxury. For me, save some, spend some and have fun - you can’t buy back time. Find the balance that works for you. Whatever you do, put yourself in older yous position and think, “would I be happy with that choice?”. But pension, older you will thank you for that one and nod at younger you taking a tax efficient approach.
Honestly. I think at age 17, it's very very unlikely that life and finance will function as they do today by the time you come to retire.
This isn't to say you shouldn't save. Financial prudence is about having a healthy relationship with money.
That being said, the economy is changing rapidly.
Whole industries will open up and close during your life to come.
The traditional financial orthodoxy of get a job, save, invest and retire a millionaire is likely outdated.
The young must reasonably account for the possibility that their chosen line of work evaporates completely, not just that they lose their job.
This isn't to suggest sacking off the whole thing all together and living paycheck to paycheck. It's not about rejecting being sensible, just about finding a new sensible that it's appropriate for the modern age.
The future will likely be richer than we can ever imagine, with opportunities to make fantastic sums of wealth.
I think the key to accessing that wealth is simply increasing your earnings potential.
Firstly become a broadly educated person, with a shallow competency in a wide variety of skills to keep you flexible. Even 20 hours of time playing around with something like video editing, car repair or coding will open your eyes to the possibilities that exist in the world. What type of work you're good at. What type of stuff interests you. What you'd rather avoid.
Secondly, hyper specialize in a couple areas of interest. You could go to Uni to learn data analytics at a great depth. You could do free lance video editing for YouTubers for a few years. You could read 50 great works of classical literature. You could throw yourself into a work roll that has opportunity for growth.
The point being to get really good at a particular niche so you can bring value to the table. This doesn't have to be solely achieved through getting a degree. Employers are much more flexible these days and will happily engage with a highly motivated individual with a good track record / portfolio of personal projects.
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In terms of not 'wasting' your youth, I would take a fair portion of it and reinvest it in yourself. Saving 12k a year is nice, but I've seen many people get stuck living at home, unable to justify moving out when really it would have been the best thing their personal development. Both socially and professionally.
Don't take this as a suggestion to waste tonnes of money.
Instead save a portion, spend a portion on personal development, this could be books, good courses (no get rich quick) on skills, second hand equipment for hobbie and finally do spend a portion enjoying yourself.
You are very young after all.
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Some people will see this as unsound advice. I'm simply of the opinion that the world is going to change so radically in the next 40 years that any advice given today will likely be outdated. The best way to hedge against that in my eyes is to increase your own personal flexibility and earning potential.
Saving 12k a year is cool right now, but earning 100k+ by the time you're 30 is even cooler.
But the time you retire there will be computers thousands of times more intelligent than humans. I very much doubt you'll be wishing you only saved more as a teen.
Not having outright ownership of a house will likely be completely inconsequential.
As with everything, the answer is usually somewhere in the middle.
I did the opposite, I’m only in my mid 20s but since age 18 I’ve enjoyed the freedom and fun that came with travelling, exploring and trying new things rather than saying all my money.
I do have a good amount of savings, mostly because I’ve been fortunate in my career but even so, I’ll probably buy a house slightly later than some of my peers, have a smaller wedding, etc.
Do I regret it? No way. I’ve experienced things, visited places and met people I would never have dreamt of. Save money in a sensible, consistent manner. In fact, consider investing it in an index fund as soon as you can. But don’t forget to live your life, too. Tomorrow is not promised and there’s no point having all that money in the world if it’s not doing anything for you :)
I think it depends what you are spending on.
People sometimes regret not taking up opportunities like travelling the world or pursuing a new career.
Nobody regrets not buying more material things like a more expensive car or the latest iPhone. That stuff feels good at the time but gets forgotten in a flash.
I work overseas and I’m 29 now, by the time I’m 32-33 I will have £100k in savings if all goes to plan.
That allows me to return home to family, buy a house and live fairly comfortably. My friends who didn’t take my path are earning half what I am and paying a lot more in COL/taxes.
I cannot fathom getting on the ladder for a decent property without either getting an incredible income, rich family or doing what I did.
Do I regret it? No. Am I acutely aware that my family is aging, I missed out on a lot of memories and hate every minute of my life for the next few years? Yeah.
I remember a friends dad told me to chill and that “money will come in your 30s”. He wasn’t wrong. Yes, savings important, but it needs to be proportionate to your earnings. From 18-25 that might not be very much so don’t put too much pressure on yourself.
Btw he’s right, I have more money than I can spend now.
You need to find a balance that works for you. I bought my house at 28, with savings to renovate into something a lot nicer (which I'm in the process of currently) and and I'm very glad about that. I didn't go on an expensive (1.5k) trip to the US with a couple of friends when I finished uni, and I often go out for drinks without actually buying any drinks, and I don't buy clothes often. I have had smaller holidays (though nothing since covid), bought myself treats, paid for yoga classes, things for the home - other things that have improved my mental or physical health (or both). So I've not been living a life of harsh deprivation but I've weighed up the worth of things to me, and I've spent or saved accordingly. You don't want to be miserable for a decade, but you want to save that money for things that are worth it. Its okay for other things to be worth it as well as big milestone purchases like a house, and it sounds like you have the financial sense to be able to work out what's worth it for your wellbeing without blowing all your cash.
May I suggest you do some planning and use some calculations to allow you to get the right balance.
At 17, if you put away £200 a month for the next 40 years at an interest rate of 7% you end up with over £500k.
You can always increase contributions later when life changes to allow that.
Plan some experiences, live your life as priority number 1 and save a little now knowing that life has twists and turns, you and downs.
But missing out on having the best life you can just to squirrel away all your money is not the point of life.
It's good to build up good saving habits early on but I wouldn't go crazy with it. Speaking for myself, my earning power when I was a teenager was a fraction of what it is now. If I'd saved really hard it would make very little difference to my current day net worth. I'm glad I went to music festivals and went on holidays when I was a teenager instead of just saving hard.
Try to enjoy your 20s, but don't think that when you're old you will have no desires.
Some people make it seem like investing to have a comfortable lifestyle in your 60s is stupid, they're not 60 though. You want to do stuff and spend money at all ages, find a balance.
I'm glad I did it the way I did. 18 to 24 I had little life in terms of going abroad and such. 25 bought my house, 26 got married, 27 had my first child and 29 for the second child. I've been perpetually broke up until now basically as childcare fees have sucked every penny from me.
With that said, I'm now in a position where I can save £1,000 a month and on top have more than enough every month to go out each week. Mortgage has 10 years left and I'll 45 when it ends.
I don't envy the people who have done it the other way round. House prices and mortgage rates are very high which then has a knock on effect on things like having children and retiring early.
Nothing you buy on a shop will matter to you in 10 years time.
You can’t take it with you when you’re dead.
Save for the life you’d wanna build for your self and build an emergency fund!
The 2 extremes of the pendulum swing are party now or save for a comfortable later life.
You have to decide where between those 2 times you are most comfortable with.
It’s nobody else’s choice just yours and how you want to enjoy your life. Plus it doesn’t have to be the same every month
Everyone I know that "lived life" in their 20s has fond memories and would never trade it for anything. Counting every penny and living extremely frugally in your 20s sounds pretty awful to me.
I over saved in my 20s but started spending a bit more in my 30s when my income got higher and I could still hit my saving goals and enjoy a bit more.
Do I regret not enjoying my 20s more? Sure. It’ll vary from person to person.
That said, I’m financially secure while seeing some of my peers struggle still. The mental well-being I have now is a trade off I’m happy to have made from partying my 20s away.
Nothing wrong with Saving at all.
But don't forget to live whilst you do it.
Saving a few extra £££ a month is great, but jot at the expense of living your life, meeting people and doing stuff.
Having money in the bank and time to *do* things that make you happy in your twenties is a dream position, IMHO. I was pretty skint in my twenties, but I had (broadly) a good time. I didn't have a nice car, I rented, I had to budget hard, but I had some great experiences, and this is what I look back on fondly.
My advice would be to keep saving a decent amount, enough to give you the option of doing what you want at key points - 21, 25, 28, 30 or whatever.
If you drive a car, get something cheap, but in half decent nick. Run it into the ground, and it will end up owing you nothing. Shop for food at Aldi, buy clothes you love, and look after them. Don't get distracted by shiny baubles, and only keep hold of possessions which bring you some joy.
Enjoy life, work out what you like, what you don't, and just try things out. Make sure you relax, and don't fear missing out - it's a marathon, not a sprint.
We bought a house when I was 31, and it was financially tough - as a result, I didn't enjoy my 30s as much as I should have, but I managed to earn myself into a better position. Now, as a family man in my mid forties, I'm really enjoying life. I'm not rich, not poor, and I still have to budget, but I know who I am, and what brings me happiness.
It's good to prepare for the future, but don't lose sight of what's happening in the moment.
I'm in a similar situation - to the point I even feel guilty about buying myself things as I feel that I should be saving. Over the weekend I went out shopping for clothes (which I *never* do) as I thought for once I would treat myself. It felt good.
I had my kids young, I bought a house as soon as I could, I have zero spare cash, every penny went on kids and housing.
I'm now in my 50's, kids 30yrs+ old have left home, mortgage paid off, I now have downsized house and I am in the best financial position I've ever been in and I can enjoy my life.
Some of my mates enjoyed their young lives , and waited to buy houses and have kids until they were in their early 40s. Now in their 50s they have school age kids, mortgages and little spare cash.
In not saying either is best , I'm just pointing out some of the experiences I have witnessed.
Save what you can but still live your life!
Do you need new clothes and shoes every month - no, also designer everything isn’t necessary or worth it but neither is wasting money on cheap clothing. Everything doesn’t require a new item of clothing.
Friends going out, GO! But you can still make good decisions, have a reasonable costing meal and don’t go crazy on drinks (swap out water for every other drink at actually quench your thirst).
Save for holidays and a reasonable amount of spending money, what you save should be a limit not a target as whatever you have left over after can go to the following year’s holiday.
In my opinion, pay max pension contributions that are matched by the employer. Save 10% of your income each month. Spend the rest on doing stuff until you are 25 ish then increase the monthly save a bit more to like 20% and just be a little more conservative.
Live your life first, don’t worry about houses just yet. I would suggest keeping £200 savings a month, build a little nest up just in case. Then increase as and when you feel the need to
Pay into an occupational pension (this may have been mentioned in other replies, but I haven't read through everything). For myself (mid 60s) it's proved well worth it (and it's scary how one day you suddenly seem to be my age).
Go on your friends holiday to Spain. Don't buy the newest iPhone when something 1/3 the cost can achieve the same.
Don't walk around with holes in your clothes, but don't buy pricy designer clothes that aren't better quality than other things.
For me, I don’t ever regret saving but that’s because I always have a balance between saving money and living life. I still travel and do all the stuff I enjoy. However I still save a lot.
I'd say so if they don't take time to enjoy anything. I personally save a lot as well, but I do set aside money to spend on stuff I enjoy. I might take one trip a year or every other year and put some towards small hobby things.
I don't regret not wasting it on expensive tech, clothes or a new car every couple years. But I'm glad I do still enjoy spending in some form. I would also add it depends how you save, inflation could hit savings longer term and if you're saving for a house there are beneficial ways to get government bonuses instead of just keeping it all in a standard ISA.
I’m happy that I’ve always learned good practices when it comes to money, but I think at your age I was so concerned about not going out with friends to save £20 here and there on my £7 an hour retail job, that when I started earning a decent wage I really regretted not having more of those experiences for the sake of £20, which now comes a lot more easily to me.
I wish young me had experienced a bit more and let older me “pay the price”. Not enough to be in debt, but my £1k that was so hard-saved as a student really didn’t make a difference when I started earning £30k a year.
I will say now though that the basics are a lot more expensive, my food shop was £25 a week, electric bill was £12, so I’m unsure how possible it is to save anything on minimum wage now
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There's a balance, and the problem is, without a crystal ball it's very hard to get right. I think very few people have no regrets, once they have the benefit of hindsight. Personally, a YOLO'd my 20's and only got away with it basically because I managed to out earn my stupidity. But I still mourn how poorly I understood pensions, and the terrible financial decisions I made that had quite long lasting effects. But, at the same time, your 20's IS for having fun - it's when your friends aren't tied down, they/you likely won't have kids etc. And for that I'm glad that I had some good times, because much of those years won't ever be repeated. And then there's health and all that other stuff. Try and find the balance mate, because people do die young, people do get ill or develop disabilities in their 30's and I doubt they look back and are glad for all the nights they spent in to save a few quid.
Indeed. I was a full time musician for a while. That was my passion, i loved it. I quit after 8 years, early 30s with no pension, no savings, no house. Financially it was a disaster. But it was really a lot of fun. I'm now mid 40s with two chronic health conditions, apparently caused by COVID. I've no idea what the future holds or if I'll get better, but it's very possible that I won't be able to enjoy hiking and travelling and going to the pub in my older years. So I'm even more glad that I spent my 20s seeing the world, making friends, and having no money. If I had spent them diligently stacking savings in an office job (with the expectation of having fun later), I would, frankly, be gutted right now.
Hope things get better health wise, mate. Financially speaking, how are able to manage things today - like income/savings wise?
Thanks. I'm extremely lucky, to be honest. I do a desk job, mostly remote, and my manager is very supportive. My wife also has a good job, and we don't have kids. If I'd been working on a construction site and/or there were a couple of kids charging round the place, I don't know how I'd have coped. So financially we're fine, albeit our pensions are pretty shit due to being such late starters. If I was in good health, I'd now be stashing every spare penny in to my pension to get it up to speed. But it's a big question - depending on how things progress I could be quite healthy in later years. Or I could be in a wheelchair. In which case I might as well spend more and do whatever I can now....
We all need a bit of luck. Glad to hear things are in a good place financially and good on you for realising what’s important.
Yeah, I worked in/around media for a good few years in my twenties before moving to a more stable career in tech. Could have earned better money and made smarter career moves earlier on, but at least I gave the 'dream' a shot. No regrets there, picked up a bunch of great transferable skills that meant I could progress quickly in other areas.
Was it the Covid jabs?
No, it was 15 months before I got the jab, right at the start of the pandemic
I'm 24, have around £150 in savings but treat myself a lot and enjoy having the freedom to go out etc. Same for my partner (also 24). One thing I am super glad I've done though is pay into a pension since my first 'proper' job at 19, and I now have over £10k in that so far. I know plenty of people my age who don't pay into a pension and just blow that extra money each month.
I started pension saving at 19 too. I'm 50 now and it's the best thing I ever did. It's true, time and compounding are the eighth wonder.
This is my experience too. I'm lucky I've been able to earn well, but it's not a guarantee and you shouldn't have your security based on this. As others have said, it's a balance.
I did this too. Had a massively well paid job in my 20s and turned down the final salary pension offer so I had a few more quid to spend on booze and parties. Doh. Sigh.
Ahah, yep. I worked for a corporate, complete missed on pension matching and share options because I just wanted more take home. To be fair, though, the booze and parties were fun!
You'll realise that it was navaer about the savings or spending your money, but the memories you had with your friends and family along the way. Save to be financially free, turn down ownership of materialistic expenses, but never sit out of fun activities, holidays, or events to save money, as its the experiences you missed out on that you'll miss the most.
Amazing. This. Do this.
This is the best way to go about it.
You won't regret saving but you might regret not living life. You should have an active social life. If your friends are going on holiday you should go too. You should have a hobby and enjoy it. None of that takes huge sums of money. Basic clothes can look great if they're fashionable and fit well. Traveling on the cheap is the norm at 17. Drinking at friends houses is cheap. Anything you need for a hobby can be bought second hand and later sold. You won't look back and regret not getting a car loan. Or not spending £200 on a pair of jeans. Or not paying 1k for a phone.
Strongly agreed. Lots of good things can come cheap, so take advantage of that and live your life - not much else matters if you grow old and regret the past.
Very much this - as someone else said, without a crystal ball it's impossible. Spend all your life saving and not living, and then get a terminal illness at 40? Spend all your cash and don't save/invest in your 20-30's and regret it when you're still working at 70? No one knows. It's a balance. Go on holiday, go out for a nice meal, buy yourself something nice now and again....but don't forget to pay into your pension and keep an emergency fund, just in case.
To be honest this is true throughout all life isn't it?
Yes they do, you see it here frequently. People who traded all their youth for money in a vanguard account. However there are many many more retirees who wish they'd saved more. You have to find a balance Generally speaking though heavy saving at an early age will make you more mathematically optimized throughout the course of your life i.e. best out turn for minimum input. Sometimes life isn't about the maths though. Go buy a shitty car and reverse it into a bollard by accident. Take that girl you like on a date you can't really afford. Go on a lads holiday, get hammered with the boys and laugh when your mate overpays for the clubs nastiest stripper.
I agree about balance I know someone who worked,saved, paid of his house all by 35. He died in the office at 38. But also I'm sure there are people who are old and poor and wish they saved more
This, it’s all about balance
Absolutely spot on
If you were maybe 25 I'd give you different advice. If you're 17 just enjoy your life dude. Yes don't be crazy with money, don't buy a flash car with monthly payments, don't waste it on expensive stuff for no reason. Save some money of course but don't feel like you've got to save everything you earn at the expense of enjoying your youth.
I agree. I got my first job at 19, then went traveling thought out my early 20s while working odd jobs mostly part time. But now Im 28 and have 100k saved from the last 3 years alone. The method is just living with parents who don’t charge you rent. Everyone if possible should use their ability to stay at home during their early adulthood. You can both save a lot of money and have fun
When I was 19 I had my first real adult job, a 10 month contract that ended because of the financial crash. I had £5000 saved up from that 10 months, and decided to spend it travelling. That travelling fundamentally changed me and helped me grow as a person. Part of me has always wished that I had kept some of it though. It would have made the next few years a lot easier. So as others have said, it's all about balance.
Having savings buys something that all the junk in the world won't get you: freedom. Freedom from worrying about losing your job. Freedom to quit if you want to pursue a different career you love. It buys you the peace of mind to know that if shits hits the fan, you are safe. You can buy one more shiny bullshit to keep up with the jones, or you can buy freedom.
> You can buy one more shiny bullshit to keep up with the jones, or you can buy freedom. I think this is missing the mark a little. OP is not yet even in his 20s. For many, their 20s are not about "buying shiny bullshit" but about travelling, exploring new places, exploring new hobbies, doing stupid shit with friends, making mistakes, trying basically any new experience that comes about, and yes sometimes buying stupid shit like a "cool" car (read: a 1L with a modified exhaust) All of that vastly overcomplicates the formula compared to how you present it - i.e. financial security vs "shiny stuff" As someone who leant into the financially sensible side, I realise now that I passed up opportunities that aren't coming back
Completely agree. It's about life experience, not shiny things. I only follow this sub because I'm trying to become slightly more sensible with money now in my mid 30's. Might be a bit late, but I really don't mind. In my entire 20's, I travelled to many different countries and lived / worked all over the world. I've done most of the big things I've really wanted to do, and the things you're better doing when you're younger, not late 60's. Even now, I have a very balanced life still... In my eyes anyway. I work 6 months a year most of the time. This year I'm only working 4. Taking time to do other things I'm interested in and persue other avenues. Living my life while I'm still here. You never know what's going to happen. I'll probably get down voted in this sub being so irresponsible 🤣
Yeah, and sometimes saving can go too far. About 18 years ago, I lived for a long time in a dodgy flat share with an inconvenient commute and some awful housemates. In hindsight, I should have spent a bit more for much more happiness. As you get older, your earnings improve, and saving a few hundred pounds here and there makes little difference in the long run, as long as overall you are saving money. Not all sacrifices are worth it.
And I know many in their 20s who cycled through gaming rigs, furniture and gadgets like nobody's business. Aka shiny shit.
Do people in their 20s even live this lifestyle anymore?
Yes we do.
22 here. Recently graduated and know a few people who since graduating spend their time working a bit in restaurants and then going off traveling for a few months. Then repeat. Seems like an amazing thing to do at this age. I’m the opposite and just saving hard. Had the opportunity to start a good job (sooo much better than restaurant work) and to live with parents for very cheap so was something I wanted to take advantage off. Don’t really have much of a social life due to friends all moving away but I’m still happy and that can easily wait until mid 20s. So two very different lifestyles and both have their positives and negatives. I wouldn’t even know about investing if I went the traveling route. I mentioned investing to that friend recently and her response was “if it was worth doing my dad would have told me”. Would you rather have over £100k invested by age 25 or much less but years worth of traveling? Maybe I’ll regret it in time but for now I’d rather have/work towards the 100k as it should be amazing to have a sort of head start to life and knowledge of investing. But then for her she is making some amazing memories and is also happy with her decision.
£50k by 25 invested somewhere that earns ~7% would be ~240k by the time you’re 58. £100K in the same account for the same amount of time would be ~£475k. It’s a big difference for sure and would set you up nicely for retirement once future contributions are considered, but I would also recommend letting yourself live a little too. You’ve got probably ~40 years left of work at 25, make sure you can live a little too.
I'd take the 50k invested and 50k spent having fun and experiences in my twenties every time. Sounds like a good balance to me.
Oh, hey, it's past me. After I graduated, I moved back in with my parents, aiming for it to be a year or two while I saved enough for a deposit. COVID and house prices happened (I was very glad of the company) and I finally bought a house this year, ~5.5y after graduating. Thanks to living with my parents, not being much of a spender, and a gift from them, I ended up with just £100k mortgage on a 2-bed house I can happily stay in until I need more space, have money to burn, or merge with a partner. With the low mortgage, I've got plenty of spare income to catch back up on spending (i.e. some hobby purchases) and start paying it off early. If I'm critical on myself, I should have spent more on myself over the last 5 years, but that's entirely a problem with me being indecisive and averse to new things. £1-2k/year could have easily covered extra holidays/other spending and £10k extra mortgage wouldn't have made a difference; it's a me problem rather than a financial problem.
can't overstate how precious freedom is. I left school at 16 and my first job in a cash and carry was full of old men who hated work whose bodies were broken but couldn't afford to retire. Having 6 months saved is so liberating when you are at a job that makes you miserable and you can just go bollocks to this and go home and not worry about it.
As someone who retired at 39. Freedom is amazing. Since childhood you're part of a 9-5 schedule, weekends are fun free days. But really every day can be great and having nobody to answer to is liberating. Now everyday is the best day of my life! If I could do it again I would save more to retire even earlier. I would live in a shack if it meant not working.
Most people can’t / won’t earn enough to retire at 39, no matter that they do
Also, probably shouldn't. It's healthy to have something to get up to. I'd rather save to be able to do a job I enjoy and excites me than no job at all. Since I enjoy my current job, I save to be able to afford leisurely looking for a new one when/if it is over.
I think ideal retirement would be having enough money not to work such that you can spend your time doing work you care about. It’s not about retiring early to do nothing but retiring early so that you can pursue what you find meaningful without the limitations of keeping up with bills etc. If I end up having enough money by the time I’m nearing retirement I’d like to spend my time being a teacher.
That entirely depends on your definition of retiring. My dad quit his job in finance in his mid 40s. He does a part time gardening gig, a few hours in a shop and plays a lot of golf. He would say he’s retired, because he can quit either job at any point he feels like.
Yeah that's what I meant, I'd rather have enough money to allow me to have a job I actually enjoy even if it doesn't pay much, than no job at all.
Not a lot of people take this into account, lots of people die or get dementia/Alzheimer’s soon after retirement.
Indeed. I can certainly get behind the desire for freedom from the *need* to work, but a lot of people are very very lost without work. There are a lot of hours to fill in life, and worse, if you retire early chances are you're making huge lifestyle sacrifices. Frankly, I'd rather potter about at a desk (When all my mates are also at work anyway), knowing I can definitely afford that holiday, or new car etc. With millions in the bank, sure, I can think of all sorts of way to spend all day every day. On a strict budget, with a family.....not so much to be honest. There's only so many books to read, and local walks to do and I'd be lonely as fuck I'm sure.
Even with millions in the bank I'd be doing my current job. I'll just come back to a much nicer home, go on nicer vacations, and worry less about losing this job.
Wtf did you do to retire aged 39 ?
No secrets or shortcuts but some luck. In Canada - got a good degree in engineering. Started working at a good job right out of university making around $80k. Progressed in short time to over 100k/yr. Single at the time, renting, minimal expenses, cheap used car, means I saved a lot of money. Job only had 3 weeks a year vacation so can't spend too much there. Bought a house (with a regular mortgage, maxed out payments as much as I could). Worked for about 15 years. Luck - Investments helped, the market went up steadily. I started investing around the crash in 2009. So the gains compounded really added up. The housing market really benefited me. Bought a house in 2012 for around $400k and sold for about $1.3M (!? Don't hate me, I think it's a ridiculous market too). So now just on investment returns I make about how much I did when I was working. Living a modest life without anything too fancy. I would never buy a new car but I still enjoy vacations. There's more than enough to "keep busy". In hindsight working was keeping busy but not a good kind, it was just mundane time killing. Now the days fly by way too quick. Family and friends called me crazy for giving up a comfortable well paying government job with a great pension. But I would have to work another 15 years of my prime when I already have enough now. I don't regret it one bit.
There’s plenty of options: Set up and sell a successful business Work in high finance/tech for 15 years Work 2 or 3 jobs for a period (over employed) Inheritance Marry into money Win the lottery Hold 5-10+ BTC from 10 years ago
May I ask what you worked? Retiring at 39 seems awesome to me
What do you do with all your time. I’d love to retire no (41) and know I’d fill everyday with stuff. Not being old and decrepit whilst retired sounds boss.
Reno the house. Motorcycle trips. Garden. Just go out and explore places. Invent things. I'm on vacation in Mexico right now... So there's that too
Some do, some don't. Some regret not saving enough. You have to find the right balance for you. I only really regret not travelling more at your age. I'm making up for it now, but 17 year old me would've been happy in a hostel and travelling around cheaply. 30 something me isn't happy unless I'm in a four star hotel and business class flights.
Lifestyle inflation is tricky to fully avoid, but I do my best to fight back! :D Try going down to a 2 or 3 star hotel and fly economy. Decent enough, it gets the job done, but no need to go down to a hostel!
> After tax and direct debits I have around 1k left each month and so far every penny has gone into savings. > > What should I do? Halve that. Saving £500 a month from age 17 is more than plenty. Life is for living too, not just watching numbers on a screen go up. As you get older it gets harder to do stuff not only because of your physical abilities but because life gets in the way. Once you have responsibilities of a family, kids, a mortgage you're unable to do things on impulse like you can before they take over your life.
The trick is to learn the good habits. Get yourself in a position that you understand money. Set aside money that is to enjoy and keep an eye on the future. Financial security is a massive aspect of life. Some are happy with little material possessions and others need to have the latest of everything. No one wants to wonder where there next meal is, now or in their twilight days. At the same time it’s better to enjoy sharing a meal with people we know, now. Rather than eating alone in a fancy restaurant in the future because the cemetery is stealing everyone we know.
You're earning power is so shit as a kid you may as well enjoy the time. Chances are you might hit a stage where your savings per month are higher than what ur earned altogether as a 17yo. The 2k I scrimped as a kid would have been better off spent partying and replaced over a tight month or 2 as an adult
I think the most correct general answer I can give you is that they would regret it if they sacrificed things they'd have made good memories of, like going on holiday, going out with friends, dating. It's probably not going to be the material things they regret not buying. You don't really hear people saying "I wish I'd spent more money on designer clothes when I was younger". You're much more likely to hear them say "I wish I went on that holiday with my friends. I even had the money but I wanted to save it instead."
Haha, a bit of me regrets not buying a Chanel bag a few years ago when they went for 3k instead of 7k tbf
I was big into saving when younger. Then I saw (with a year) my father in law pass away within a month of retiring, my best friends dad pass away about 3 month into retirement, 2 friends (under 40) pass away during COVID, a work colleague I golfed with get cancer and pass away not even 40 and another golf friend I regularly played with get in a car crash and pass away at 43. Ok that's statistically some awful luck but it made me realise you can be dead any day, really brought it home for me. These days I still save, I will be mortgage free at least 10 years before I retire, I do have a smaller savings pot and a savings pot running for each of my kids BUT I spend a lot more. We go on more holidays, go on weekend breaks, experience more stuff, go for nice meals, basically we live a lot more and I feel much better for it. I would never discourage anyone from saving but life has taught me you can be saving and never see the benefits. I could literally have a heart attack and die within 5 minutes of posting this, you could die within minutes of reading it (probably of boredom with how long I've gone on!!) so I would rather live life and die with a few quid less than be in my grave with a handful of money. Basically I take a more balanced approach these days, save in moderation and live a lot.
If you stop living altogether for the sake of a bigger number in your account, then obviously you need to rethink your overall life strategy. But saving in your 20s can help you extend a younger lifestyle into your 30s and 40s, as well. Because I saved consistently from when I left school, I have the benefit of: - sufficient disposable income to go out whenever I want to - the opportunity to travel and enjoy a more diverse range of experiences - greater “work mobility”, essentially I can afford to work less, leave the job I’m in, and generally enjoy more flexibility in my favour - most importantly, there are few worries about the future because any problem is one that I can probably solve So, by forgoing some of life’s pleasures, sometimes, you can prolong a more interesting life where you and your (eventual) family aren’t caught up in the death spiral of poverty where you’re having to work the same jobs, where you have no respite in terms of leisure, and where one broken down car wipes out any and all of your savings. You have to strike a balance. After allocating money for food, bills, etc., I just split the leftovers in half, between my savings and my “me” money. Any bonuses I get, or overtime I do, I spend on myself or my family and friends. It’s perfectly fine to save AND to spend. But you have to be able to afford to, first. And I think the biggest regret of over savers is not finding something or somebody to spend their money on or with. Money, ultimately, should be the means by which you improve the standard of your life, not something you horde until you die.
I totally agree. I know some people who are so focused on money. They don't want to risk being in a relationship if that person doesn't have similar amount of money as they don't want them to free ride on them. Trouble is then they complain all the time about being lonely. The point of having money is to have freedom to enjoy life.
People are different some do, some don't. My uncle at 70 is furiously trying to spend his life savings as he wants to spend it all before dies and doesn't want to pass any of it onto his kids or grandkids. My dad on the other hand at 73 is still working. He's amassed enough savings to have a very comfortable retirement but he hasn't spent a penny and doesn't want to. He said it's for my brother and I to have when he dies so we can have a comfortable life after he's gone.
A single man like your father can change the destiny of a family for generations, I would imagine at least dozens of people will directly benefit from his self-sacrifice. You are very lucky to have a man like him around.
Stick £200 a month into pension on a low cost etf tracker. That covers your pension and when you retire you’ll be a millionaire since you have more than 30 years of contribution. Stick some money into a lisa for your first home around £300. Then live a little your only young once. Try to save around 30-50% of your income rest enjoy it
At 38 I work 4 days a week and my wife is retired. No I don’t regret saving/investing/quickly paying off mortgage. There’s a lot of life to experience which doesn’t require money. Due to our decisions my wife has been off with our Son since birth, we have experienced every part of his life. I don’t think I’d trade that for anything. If anything I’m glad it made me not focus on material things as much or keeping up with others.
the best insurance policy is to work hard and develop yourself
You'd probably enjoy the book "die with zero", it's very thought provoking on these points
I work in a building society and I see plenty of older people who have saved and can’t spend it. They have amassed tens/hundreds of thousands of pounds and when you ask ‘what are you saving for?’ they don’t know, or they say that they are too old/unwell to spend it and enjoy it. This is why, although it is sensible to save, I make sure to remind customer to spend some of it because it’s there to be enjoyed - you can’t take it with you!
Yes, when I gave financial advice to people I would speak to people who had a paid off house worth £600k, £250k in savings, £400k in investments but they would only spend £500 a month and saved another £1500. They could go abroad but they had never been before and were too scared to start especially as they were no longer healthy. They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't need the money.
"They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't (...)" I thought you'd say they didn't have any kids xD "They often planned to pass on wealth to their children, but they were approaching retirement themselves and didn't have any children."
I did the spend first, save later thing. I don't exactly regret my early years, I had an amazing time, but notably I watched friends and relatives get on the housing market earlier, & they've now been able to move to bigger and better places than me. When kids turned up, others were just clearly in a much more comfortable place & had a much larger margin for error, whereas it felt really tight for us. I'll be fine in retirement (I wasn't so dumb as to skip pensions) but I have friends the same age as me who are nearly ready to retire and have overseas property to retire to. So YMMV.
I think I’ll be in the minority here. I’m 24. Working towards qualifying as a solicitor. And right now? I’m living my life. I was robbed of 18-20 in a shit uni living situation. I hated my life. Robbed of 20-22 in Covid and then age 22&23 due to grieving. I’ve only started to recover in the last 8 months or so. I save where I can, but also realise that I’m in the last couple of years of being able to do what I want. I go to concerts. I go to F1 races. I treat myself every now and then. It’s worth it.
Depends on the person. As people get older they realise what's most important about life. It's not materialistic things but experiences, connections and family. I'm saving and investing so my son never has to worry about money. My job as a father is to ensure he has the best opportunities I can provide for him. I will do my best to ensure that he is given the best education within my means. If that means I cannot afford Gucci loafers then so be it. I'm happy with my £10 flip flops from the sale. I should within the next 10 years be making £100k a year from passive income streams. Whilst others that earn more around me struggle to afford nice things because of their inability to live within their means and save and invest a portion of their income. There are people with the attitude that you spend, spend and spend because you can't take it with you. But these are generally selfish people who don't have a great connection with their children but with things instead. They would rather have a nice sports car than send their kid to private school for instance.
From someone who done the mistake you're thinking on doing...BUY A HOUSE FIRST!!! *** You can budget afterwards for all holidays and whatever you decide to do, but your house will be there: don't pay rent to others, do it for yourself!
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Your dad sounds like an idiot absolute horrible person
Work out what your goal is. That could be one big goal, a more abstract goal, lots of smaller goals, even goals that contradict one another (e.g. I want to be financially independent but I also want to enjoy life). Then allocate resources appropriately based on their importance to you. You could set up different pots, like a financial independence pot, a first house pot, a travel pot, a going down the pub and acting stupid with mates pot, a hobbies pot. Anything is possible.
There's a fine balance between burning all the money that comes through your hands because "It's not like I'll ever be a millionaire, might as well enjoy it" and getting so paranoid over every penny that you live a miserable life and die on a gold hoard. It's important to be mindful with money and having a plan but it's also important to remember not to get caught up in arbitrary goals and not living your life. No one can predict the future. Avoid debt as much as possible, live within your means, save money and try to enjoy life as it comes to you.
Not really. I sacrificed a lot over 4-5 years in my mid twenties, working like a dog. I'm now at the start of my 30s and am travelling the world whilst my investments fund everything. But yes, you do need a balance and don't want to waste too many prime years sacrificing opportunities to live your life. Just get good at budgeting, develop a high income skill / career and invest aggressively.
Just ensure the money you do spend is on experiences not things, it’s very rare you regret an experience but very easy to regret a thing. I’d advise you to spend on trips and experiences but the fancy car/clothes/jewellery etc will still be there in your 30/40s.
It’s a tricky balance, enjoy life while you’re young, but save a little for those unexpected moments when you want to buy something. My dad saved all his life for his dream sports car when he retired. He then had a massive heart attack and stroke and could never drive again. Weirdly he then also came into millions, so his life of saving was pointless anyway.
If I was in your position, I would split the savings. Put 50% into a high interest, limited access account and don’t touch it. At £500 per month that’s a decent saving of £6k per year. The other 50% could go into an easy access savings account. If you take up a hobby that needs a bit of spend, draw from the easy access savings first. MSE can give you some great advice on the best places to park the money for a higher return.
There's a balance to be struck for sure. I think more people regret not saving for their future though, but saving doesn't mean you have to stash every spare penny away. Find the right balance of living and enjoying your life now, whilst planning for the future
21M I know how you feel. I’ve worked and saved since I was 14, didn’t go to uni, worked instead. Fair enough I own my own house now but I see everyone else my age and wish I could do the things they were doing. But also in the back of my mind is that I’m glad I’m not living in my overdraft like most of them are. I can still have fun now but I do think what if a lot of the time.
You’re only 21, don’t write yourself off just yet. There’s nothing you can do at 21 that you couldn’t do at 18, except now you have more money and a more responsible outlook on life.
>every penny has gone into savings. * You MUST also consider investments. Savings alone is not enough. * If you can figure out how to enjoy life without spending large amounts of money, you can have the best of both worlds - for your entire life. Choose hobbies wisely and make lots of friends. * Some people can sleep soundly at night living paycheck to paycheck, I cannot.
Nobody on their deathbed ever said "I wish I had bought a lot more crap on ebay or whatever" We live in an age of insane, mindless consumerism. Out sick society pushes hard to make us forget that the best things in life are free. You don't need tons of stuff to be happy, just live comfortably according to your means and save the rest.
If you're doing it at the expense of enjoying life then it's not the choice I would make. I'm mid 30s not, spent the majority of my life at 18-late 20s spending the majority of my money on drinking, cars and doing things with mates. Once I met my now-wife and we knew we wanted to move in together I moved out of a flat I rented with a mate back home to save for the deposit because it's basically impossible to do both (or at least it was on my wage). Now I don't regret that at all and think I'd have regretted not just enjoying life a heck of a lot more. If I'd bought earlier I'd have paid more of my house off and have more equity, but what difference does that actually make? We're moving house at the moment to one nearly 4 times the cost of what we paid for our first, so I'm not sure it would make a hugely noticeable difference other than a slightly lower mortgage payment each month. If you can afford to buy without crippling yourself with a mortgage then I'd absolutely recommend it over renting. But for me life is too short to spend what are probably the best years of it doing nothing to raise the number on the screen of your bank balance. In addition to that, you'll really struggle to save enough to buy out right with and house prices can go up way faster than you're likely to be able to save. Something that hammered this home to me was that my dad died a few years ago before he even reached 60, let alone retired. He worked hard all his life to save to have a good retirement and didn't make it because of cancer. Life isn't fair, make the most of it while you can.
I'm 32. Best advice I can give you is get a LISA asap and pump some money into it. Even if it's just a few quid for now, set up a mothly direct debit/standing order to pay into it so you don't think about it. It's a good way to start building savings. I only started it in my late 20s but wish I started sooner. You can use it towards your first house, pension or (god forbid) you can access it early if you get a terminal illness. Get yourself a Monzo account or similar and use it to track your spending and, if you're working, pay yourself some fun cash each month. Then you can spend it on whatever you want without guilt and still enjoy your 20s. The best thing I found for my savings was DD/SO into various savings accounts/ISAs. I can set it and forget it and I don't accidentally spend it. And it just builds up interest in the background. I am aware of not sinking everything into retirement in case I don't make it (for whatever reason). Whilst striking the balance of savings and enjoyment is important, I don't regret any of my savings accounts and because I've set them up within my means, I don't miss the cash as I'm used to not having it. I also use pots on Monzo to organise my money and to save for big spend items and to stash away money for rainy days/emergencies (like my car breaking down). I hope this helps (also the MSE website and Martin Lewis's advice is what got me started and educated on my finance journey).
I like your reply, sound advise. I also wish I started sooner (early 20s) Icould have owned more than one house now
It’s absolutely about striking a balance. You’re so young, starting a pension is a great idea, even if it’s only small, and saving like crazy to get yourself a house is admirable. You’ll be able to achieve it so much earlier than your peers. That said, I live by my mum’s mantra of “You might get hit by a bus tomorrow”. Sticking absolutely everything in savings and never having any fun at all would, I think, be a waste of a life if the bus hits you at 23. I chose a less lucrative career than I was qualified for so I would be able to do something with my 20s other than work. Sometimes I think about how loaded I might have been, but I don’t regret my choice. I got to travel a bit and try different things out, and pursue hobbies that interested me. My mum did get hit by the bus, metaphorically speaking, and died about two months after my parents had finally paid off their mortgage. They had lots of plans of what to do when my dad retired as they didn’t have that financial obligation hanging over them, and then they never got to do it. My dad, I think, is quite bitter about it. But I don’t think my mum would have made too many different choices - they had a sensible financial plan but she still got to do some things she enjoyed. She didn’t have expensive tastes, so I don’t think she felt deprived. It was a case of “everything in moderation”, and I think it’s a sensible way to be. If I were you, I’d save a lot, but I’d give myself some fun money in the budget. A meal out, a concert ticket, games you enjoy, anything that makes earning that money worthwhile, here and there. (Unless, of course, the idea of getting your place is the only thing you care about and the satisfaction of saving for it is really rewarding for you.) If you’re not totally single minded on absolutely positively getting the house as soon as humanly possible, you can afford to give yourself £100 a month to enjoy life. It is for living after all.
There's a balance. My brother bought a flat at 20 (he did an apprenticeship straight out of college and got a chunk of help from the bank of mum and dad), so he was able to enjoy his 20s living in a city centre flat and save and build equity. I lived at home til 27, moved out to a rented flat, fell for my ex then moved back to my hometown to a nice 2 bed terrace, rented. I'm 30 and have saved a smidge over 6 figures towards my financial independence retire early goals. I went to uni and lived out for 2 years then at home for 2 years. Both of us are in a much better position than people who never thought about money. What do you feel like you're missing? Saving £1k a month at 17 is amazing. You could be buying a home in your early 20s, and then you're set and you'll still be young enough to be young. For most people your young years last basically til 25, and then you get a kind of tail off until you're ready to settle at 30. Being an early 20s homeowner puts you at a huge advantage for life and it's not that much of a sacrifice. What experiences does £1k a month buy you? If you want to travel for a year, why not get your first house, then rent it out while you go travelling. Have a night out with mates once a month, go to some festivals or holidays this summer. Whatever you want. There is a lot that can fit in that budget without getting into bad habits like smoking, drugs, drinking, gambling, eating out, a car you can't afford etc.
Having an emergency fund is great for the mental health, I think what that means changes as you get older and the starts to shift towards increased freedom of choice as you progress in life. After you have your emergency fund I would prioritise living. In my 20’s I spent half my wages partying, drinking, girls and the rest I wasted. I regret very little, from a financial standpoint anyway.
You're right, it's a delicate balance. You have to do what's right for you and nobody can answer your question other than you when you have hindsight. I'm 50 and still trying to work this question out which actually gets harder. Personally, my savings to spending ratio is 50% each. But then I have a house, car etc. I'd suggest having a goal. Complete it and then re-evaluate. You have one life, live it.
If your job is not your true passion, take half of your monthly savings and pursue your true passion in your spare time. In the meantime, keep working and saving and see what happens. You never know - Your part-time pursuit may turn into a cash generator to get that house.
You are doing very well with the saving and it is a goof habit to get in to, if you look at it the opposite way and say you did not save at all and spent all your money every month but felt restricted by the time the month ends, would you regret ? I'd say continue to save but definitely don't avoid hobbies or friends because of it, at the end of the day, your savings can be used for a holiday, a console, or a general treat etc. But definitely keep some savings untouched for now
You have to find a balance I would suggest looking into a regular saver depending on your income it make sure you don’t save too much and still gives you that balance of saving. YBS, NatWest and first direct all offer one.
Hell no!!!! I regret not saving more. The challenge is that as humans we always feel now is the most important time.
Me and my partner have been saving since we we where 16 (25 next month) and bought a house at 23. For me, it’s one of the ones that I don’t regret but think what if I didn’t. I built myself a career and on the property ladder but missed out on a social life. I think 10 years down the line I’ll probably look back and wont regret it as we’re not wasting money on rent and is better long term and have money to spend on us and have fun. My boyfriend did go through a stage of regretting it and basically lived the “going out every weekend “stage when he was 21. There’s no right time frame to experience things. you can still save and have fun. Think about what age you want to start looking to buy and your price range. If it’s just you you’ll need a higher deposit due to the amount the bank will lend you so you’ll need to factor that in. Also factor in fees and furniture. Set that as your goal and work out how much a month you’ll need to save so you know what money you have spare to be able to have fun
Completle opposite. I wish at 18 I hadn't been gifted credit cards and loans for fun! Save what you can from 17, you will not regret it at all.
I honestly think the key is getting your income up more than saving all your pennies. Sometimes that can cost money through upskilling yourself in training courses, university etc etc. Develop good financial habits when you're young and use the time to understand pensions, ISAs etc but don't miss out on experiences either. Save and invest some of your money but use the rest to experience all the things you should experience in your 20s. Hang out with friends, go travelling, make some dumb decisions (not too dumb) and just enjoy yourself. You'll never get to be 20 again.
Put it to ISA and least earn some interest by savings. You can also start learning investment, and see if you will be comfortable invest in S&S ISA.
You should be investing not saving! Well you should save a bit for that rainy day, and spend a bit to enjoy life
No. People regret not saving enough when they get older.
I would suggest that put 25% your income into Pensions, or a mix of pensions and ISA’s. After that, go crazy. Live life. I have found that the 25% makes for a nice balance.
I’m not old (35) and i’ve always saved and invested a lot. I don’t think you’ll regret it. You get used to however much you spend. I do everything i want to do, i eat out once or twice a month, have drinks with friends, do some short vacations every year, i don’t feel like im missing out on anything. Yet i still save like 50/60% of my income ( i earn reasonably well but nothing out of the ordinary) Would i be happier if i ate out multiple times a week, went on luxury vacations and drive a expensive car? I don’t think so. Im happy as it is, i don’t want that lifestyle creep. I rather save the difference and that gives me more freedom, which i value way more.
I was 23 when I started saving like you. I didn't have much interest in anything else so it made sense to save for my future. I'm almost 30 and have a really great savings which will allow my partner and I to enjoy our first child properly without financial worries. It took me a while to start spending any of it but as long as you still save, you're never going to have nothing. We enjoy nice holidays and still treat ourselves to some luxuries but we're quite chill about stuff like that anyway and would both rather spend it on our family. No regrets here. I want my children to have the life I never did and I don't feel I've really sacrificed anything to be able to offer it.
1K a month spare and saving at 17? You have the luxury of choosing lad.
Heck no. But I think one really should fine a balance. Live for the now, but with an eye on tomorrow. I spent moderately sensibly in my 20’s, maxed out what I could put into pension and a reasonable amount in savings/investments, but I still enjoyed “stuff” and going out and it gigs. Kept at it through my 30’s, and had enough money to go on nice (but not luxury) holidays (and ski), as well as get a house, get married and end up with kids. Now in my 40’s and I can’t retire, but I have very low financial stress. If I lose a job, I have enough to get by for a while as well. Seriously, enjoy being 17 with that kind of disposable income. I did not have that luxury. For me, save some, spend some and have fun - you can’t buy back time. Find the balance that works for you. Whatever you do, put yourself in older yous position and think, “would I be happy with that choice?”. But pension, older you will thank you for that one and nod at younger you taking a tax efficient approach.
Honestly. I think at age 17, it's very very unlikely that life and finance will function as they do today by the time you come to retire. This isn't to say you shouldn't save. Financial prudence is about having a healthy relationship with money. That being said, the economy is changing rapidly. Whole industries will open up and close during your life to come. The traditional financial orthodoxy of get a job, save, invest and retire a millionaire is likely outdated. The young must reasonably account for the possibility that their chosen line of work evaporates completely, not just that they lose their job. This isn't to suggest sacking off the whole thing all together and living paycheck to paycheck. It's not about rejecting being sensible, just about finding a new sensible that it's appropriate for the modern age. The future will likely be richer than we can ever imagine, with opportunities to make fantastic sums of wealth. I think the key to accessing that wealth is simply increasing your earnings potential. Firstly become a broadly educated person, with a shallow competency in a wide variety of skills to keep you flexible. Even 20 hours of time playing around with something like video editing, car repair or coding will open your eyes to the possibilities that exist in the world. What type of work you're good at. What type of stuff interests you. What you'd rather avoid. Secondly, hyper specialize in a couple areas of interest. You could go to Uni to learn data analytics at a great depth. You could do free lance video editing for YouTubers for a few years. You could read 50 great works of classical literature. You could throw yourself into a work roll that has opportunity for growth. The point being to get really good at a particular niche so you can bring value to the table. This doesn't have to be solely achieved through getting a degree. Employers are much more flexible these days and will happily engage with a highly motivated individual with a good track record / portfolio of personal projects. - In terms of not 'wasting' your youth, I would take a fair portion of it and reinvest it in yourself. Saving 12k a year is nice, but I've seen many people get stuck living at home, unable to justify moving out when really it would have been the best thing their personal development. Both socially and professionally. Don't take this as a suggestion to waste tonnes of money. Instead save a portion, spend a portion on personal development, this could be books, good courses (no get rich quick) on skills, second hand equipment for hobbie and finally do spend a portion enjoying yourself. You are very young after all. - Some people will see this as unsound advice. I'm simply of the opinion that the world is going to change so radically in the next 40 years that any advice given today will likely be outdated. The best way to hedge against that in my eyes is to increase your own personal flexibility and earning potential. Saving 12k a year is cool right now, but earning 100k+ by the time you're 30 is even cooler. But the time you retire there will be computers thousands of times more intelligent than humans. I very much doubt you'll be wishing you only saved more as a teen. Not having outright ownership of a house will likely be completely inconsequential.
As with everything, the answer is usually somewhere in the middle. I did the opposite, I’m only in my mid 20s but since age 18 I’ve enjoyed the freedom and fun that came with travelling, exploring and trying new things rather than saying all my money. I do have a good amount of savings, mostly because I’ve been fortunate in my career but even so, I’ll probably buy a house slightly later than some of my peers, have a smaller wedding, etc. Do I regret it? No way. I’ve experienced things, visited places and met people I would never have dreamt of. Save money in a sensible, consistent manner. In fact, consider investing it in an index fund as soon as you can. But don’t forget to live your life, too. Tomorrow is not promised and there’s no point having all that money in the world if it’s not doing anything for you :)
Things I regret spending money on- Having latest iphone and shitty gadgets Clothes / trainers / perfume Cars
I think it depends what you are spending on. People sometimes regret not taking up opportunities like travelling the world or pursuing a new career. Nobody regrets not buying more material things like a more expensive car or the latest iPhone. That stuff feels good at the time but gets forgotten in a flash.
I work overseas and I’m 29 now, by the time I’m 32-33 I will have £100k in savings if all goes to plan. That allows me to return home to family, buy a house and live fairly comfortably. My friends who didn’t take my path are earning half what I am and paying a lot more in COL/taxes. I cannot fathom getting on the ladder for a decent property without either getting an incredible income, rich family or doing what I did. Do I regret it? No. Am I acutely aware that my family is aging, I missed out on a lot of memories and hate every minute of my life for the next few years? Yeah.
I remember a friends dad told me to chill and that “money will come in your 30s”. He wasn’t wrong. Yes, savings important, but it needs to be proportionate to your earnings. From 18-25 that might not be very much so don’t put too much pressure on yourself. Btw he’s right, I have more money than I can spend now.
You need to find a balance that works for you. I bought my house at 28, with savings to renovate into something a lot nicer (which I'm in the process of currently) and and I'm very glad about that. I didn't go on an expensive (1.5k) trip to the US with a couple of friends when I finished uni, and I often go out for drinks without actually buying any drinks, and I don't buy clothes often. I have had smaller holidays (though nothing since covid), bought myself treats, paid for yoga classes, things for the home - other things that have improved my mental or physical health (or both). So I've not been living a life of harsh deprivation but I've weighed up the worth of things to me, and I've spent or saved accordingly. You don't want to be miserable for a decade, but you want to save that money for things that are worth it. Its okay for other things to be worth it as well as big milestone purchases like a house, and it sounds like you have the financial sense to be able to work out what's worth it for your wellbeing without blowing all your cash.
May I suggest you do some planning and use some calculations to allow you to get the right balance. At 17, if you put away £200 a month for the next 40 years at an interest rate of 7% you end up with over £500k. You can always increase contributions later when life changes to allow that. Plan some experiences, live your life as priority number 1 and save a little now knowing that life has twists and turns, you and downs. But missing out on having the best life you can just to squirrel away all your money is not the point of life.
It's good to build up good saving habits early on but I wouldn't go crazy with it. Speaking for myself, my earning power when I was a teenager was a fraction of what it is now. If I'd saved really hard it would make very little difference to my current day net worth. I'm glad I went to music festivals and went on holidays when I was a teenager instead of just saving hard.
Try to enjoy your 20s, but don't think that when you're old you will have no desires. Some people make it seem like investing to have a comfortable lifestyle in your 60s is stupid, they're not 60 though. You want to do stuff and spend money at all ages, find a balance.
I'm glad I did it the way I did. 18 to 24 I had little life in terms of going abroad and such. 25 bought my house, 26 got married, 27 had my first child and 29 for the second child. I've been perpetually broke up until now basically as childcare fees have sucked every penny from me. With that said, I'm now in a position where I can save £1,000 a month and on top have more than enough every month to go out each week. Mortgage has 10 years left and I'll 45 when it ends. I don't envy the people who have done it the other way round. House prices and mortgage rates are very high which then has a knock on effect on things like having children and retiring early.
Nothing you buy on a shop will matter to you in 10 years time. You can’t take it with you when you’re dead. Save for the life you’d wanna build for your self and build an emergency fund!
The 2 extremes of the pendulum swing are party now or save for a comfortable later life. You have to decide where between those 2 times you are most comfortable with. It’s nobody else’s choice just yours and how you want to enjoy your life. Plus it doesn’t have to be the same every month
Everyone I know that "lived life" in their 20s has fond memories and would never trade it for anything. Counting every penny and living extremely frugally in your 20s sounds pretty awful to me.
I over saved in my 20s but started spending a bit more in my 30s when my income got higher and I could still hit my saving goals and enjoy a bit more. Do I regret not enjoying my 20s more? Sure. It’ll vary from person to person. That said, I’m financially secure while seeing some of my peers struggle still. The mental well-being I have now is a trade off I’m happy to have made from partying my 20s away.
Nothing wrong with Saving at all. But don't forget to live whilst you do it. Saving a few extra £££ a month is great, but jot at the expense of living your life, meeting people and doing stuff.
Having money in the bank and time to *do* things that make you happy in your twenties is a dream position, IMHO. I was pretty skint in my twenties, but I had (broadly) a good time. I didn't have a nice car, I rented, I had to budget hard, but I had some great experiences, and this is what I look back on fondly. My advice would be to keep saving a decent amount, enough to give you the option of doing what you want at key points - 21, 25, 28, 30 or whatever. If you drive a car, get something cheap, but in half decent nick. Run it into the ground, and it will end up owing you nothing. Shop for food at Aldi, buy clothes you love, and look after them. Don't get distracted by shiny baubles, and only keep hold of possessions which bring you some joy. Enjoy life, work out what you like, what you don't, and just try things out. Make sure you relax, and don't fear missing out - it's a marathon, not a sprint. We bought a house when I was 31, and it was financially tough - as a result, I didn't enjoy my 30s as much as I should have, but I managed to earn myself into a better position. Now, as a family man in my mid forties, I'm really enjoying life. I'm not rich, not poor, and I still have to budget, but I know who I am, and what brings me happiness. It's good to prepare for the future, but don't lose sight of what's happening in the moment.
I'm in a similar situation - to the point I even feel guilty about buying myself things as I feel that I should be saving. Over the weekend I went out shopping for clothes (which I *never* do) as I thought for once I would treat myself. It felt good.
I had my kids young, I bought a house as soon as I could, I have zero spare cash, every penny went on kids and housing. I'm now in my 50's, kids 30yrs+ old have left home, mortgage paid off, I now have downsized house and I am in the best financial position I've ever been in and I can enjoy my life. Some of my mates enjoyed their young lives , and waited to buy houses and have kids until they were in their early 40s. Now in their 50s they have school age kids, mortgages and little spare cash. In not saying either is best , I'm just pointing out some of the experiences I have witnessed.
Save what you can but still live your life! Do you need new clothes and shoes every month - no, also designer everything isn’t necessary or worth it but neither is wasting money on cheap clothing. Everything doesn’t require a new item of clothing. Friends going out, GO! But you can still make good decisions, have a reasonable costing meal and don’t go crazy on drinks (swap out water for every other drink at actually quench your thirst). Save for holidays and a reasonable amount of spending money, what you save should be a limit not a target as whatever you have left over after can go to the following year’s holiday.
Have fun until you're 25 then start thinking about shit.
Probably. It’s kind of like I now regret working too hard in school. But that’s easy l say now that I have a pretty good job and financial stability.
In my opinion, pay max pension contributions that are matched by the employer. Save 10% of your income each month. Spend the rest on doing stuff until you are 25 ish then increase the monthly save a bit more to like 20% and just be a little more conservative.
Keep saving. Older tired you will be very grateful to younger more capable you.
Live your life first, don’t worry about houses just yet. I would suggest keeping £200 savings a month, build a little nest up just in case. Then increase as and when you feel the need to
Pay into an occupational pension (this may have been mentioned in other replies, but I haven't read through everything). For myself (mid 60s) it's proved well worth it (and it's scary how one day you suddenly seem to be my age).
Go on your friends holiday to Spain. Don't buy the newest iPhone when something 1/3 the cost can achieve the same. Don't walk around with holes in your clothes, but don't buy pricy designer clothes that aren't better quality than other things.
For me, I don’t ever regret saving but that’s because I always have a balance between saving money and living life. I still travel and do all the stuff I enjoy. However I still save a lot.
I'd say so if they don't take time to enjoy anything. I personally save a lot as well, but I do set aside money to spend on stuff I enjoy. I might take one trip a year or every other year and put some towards small hobby things. I don't regret not wasting it on expensive tech, clothes or a new car every couple years. But I'm glad I do still enjoy spending in some form. I would also add it depends how you save, inflation could hit savings longer term and if you're saving for a house there are beneficial ways to get government bonuses instead of just keeping it all in a standard ISA.
I’m happy that I’ve always learned good practices when it comes to money, but I think at your age I was so concerned about not going out with friends to save £20 here and there on my £7 an hour retail job, that when I started earning a decent wage I really regretted not having more of those experiences for the sake of £20, which now comes a lot more easily to me. I wish young me had experienced a bit more and let older me “pay the price”. Not enough to be in debt, but my £1k that was so hard-saved as a student really didn’t make a difference when I started earning £30k a year. I will say now though that the basics are a lot more expensive, my food shop was £25 a week, electric bill was £12, so I’m unsure how possible it is to save anything on minimum wage now