_novice_123
Registered User
- Messages
- 5
I'm going to be 25 this year and want to take more control over my finances. How to do that is another question 
I come from a family of hard workers and good savers who have never struggled financially, but wouldn't describe any of us as particularly financially savvy!
Although my salary is pretty small (take home is 21k, I work in the arts!), I have always been a good saver, and COVID has actually worked in my favour in terms of boosting my ability to save. Up to this point, I have always saved with a specific goal in mind e.g. travelling, education, spending a year studying in Canada etc. Realistically my next goals are probably a cheapy car in the next few years, possibly some further investment in my education and eventually a deposit on a house in my 30s. I roughly follow the 50% of salary on needs, 30% wants, 20% saving rule...is that even a rule?...and I find it pretty manageable.
I generally aim to save a minimum of 20% of my income per month, but thanks to miraculously cheap rent (I must have a Dublin based guardian angel), I can usually stretch to more than that, and during COVID, with no social life or travel expenses I have been able to make that 30%+ since Feb. This leaves me with €4200 - €6300 savings annually. I have no debt, no outstanding loans and no credit card, and my rent, utilities, transport, food, and subscriptions make up around 46% of my income (€9550ish).
Currently my savings live in an account that was a student saver account, and since I ceased being a student, has converted into that bank's standard saver account, which I'm pretty sure has an interest rate of 0.01%. By the end of they year, I'm hoping to have saved around €9000 total, and basically want advice what is the smartest way to save going forward?
Question 1: Should I try to shop around for savings accounts with higher interest rates? (I already know the answer is yes, but have no idea where to start. Any tips on what to look for?)
Question 2: Is it ridiculous for someone like me to start thinking about investing €500-€1000 a year/every second year in longer term investments e.g. stocks/bonds?? (it's ok to say yes btw). If is this is ridiculous, what options do I have to grow my money over the next few decades? Everywhere I look, people advise that starting investing young is key to making compound interest work for you in the long term, but again, have LITERALLY zero idea where to start!
Question 3: Starting from a few months ago, I pay 3% of my salary to my work pension, which they match with contributions up to 5.5.% - is this all the investment a gal like me should aim for this side of 30??
I realise that compared to most of the posts on here, this seems like it's been written by an actual child, but I live by the rule that its better to ask a stupid question to get on the right path, and asking nothing and wandering around in the dark.
Any and all advice appreciated!
I come from a family of hard workers and good savers who have never struggled financially, but wouldn't describe any of us as particularly financially savvy!Although my salary is pretty small (take home is 21k, I work in the arts!), I have always been a good saver, and COVID has actually worked in my favour in terms of boosting my ability to save. Up to this point, I have always saved with a specific goal in mind e.g. travelling, education, spending a year studying in Canada etc. Realistically my next goals are probably a cheapy car in the next few years, possibly some further investment in my education and eventually a deposit on a house in my 30s. I roughly follow the 50% of salary on needs, 30% wants, 20% saving rule...is that even a rule?...and I find it pretty manageable.
I generally aim to save a minimum of 20% of my income per month, but thanks to miraculously cheap rent (I must have a Dublin based guardian angel), I can usually stretch to more than that, and during COVID, with no social life or travel expenses I have been able to make that 30%+ since Feb. This leaves me with €4200 - €6300 savings annually. I have no debt, no outstanding loans and no credit card, and my rent, utilities, transport, food, and subscriptions make up around 46% of my income (€9550ish).
Currently my savings live in an account that was a student saver account, and since I ceased being a student, has converted into that bank's standard saver account, which I'm pretty sure has an interest rate of 0.01%. By the end of they year, I'm hoping to have saved around €9000 total, and basically want advice what is the smartest way to save going forward?
Question 1: Should I try to shop around for savings accounts with higher interest rates? (I already know the answer is yes, but have no idea where to start. Any tips on what to look for?)
Question 2: Is it ridiculous for someone like me to start thinking about investing €500-€1000 a year/every second year in longer term investments e.g. stocks/bonds?? (it's ok to say yes btw). If is this is ridiculous, what options do I have to grow my money over the next few decades? Everywhere I look, people advise that starting investing young is key to making compound interest work for you in the long term, but again, have LITERALLY zero idea where to start!
Question 3: Starting from a few months ago, I pay 3% of my salary to my work pension, which they match with contributions up to 5.5.% - is this all the investment a gal like me should aim for this side of 30??
I realise that compared to most of the posts on here, this seems like it's been written by an actual child, but I live by the rule that its better to ask a stupid question to get on the right path, and asking nothing and wandering around in the dark.
Any and all advice appreciated!