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Personal Finance Advice Needed

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Personal Finance Advice Needed  Reply with quote  

Hey everyone,

I'm currently taking a look at my life and how I can make myself more financially comfortable. Okay, so I'm in full-time employment, and I guess I can be honest here, I earn around 1100 a month.

I'm 20 years old, so I guess I could look very long term and go back into education, with the aim of getting a degree to obtain a better paid job in the future. But that way, I'd have to quit my current job and not earn money.

I know nothing about financial jargon, and how to make money. I have a savings account but I don't even really know how it works. I've heard about investing, mortgages, and other ways of making money, but is my wage too low, and do I need a financial education to do any of it? I mean, I wouldn't have a clue about investing, or setting up a pension scheme or whatever.

Practically, I'm 20 years old and am renting a room near where I work, I just about get through each month till my next pay arrives. One day I'd love to own a place, but how do I make that happen? On my wage, is this ever possible? I want to take positive steps in my financial life, and I need advice on how to do that.

Xagan Smile
Post Tue Oct 30, 2012 6:21 pm
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Actually I doubt that it is possible to own a home with that income, it is the bare subsistence level, any 'left-over' money will be so small that you will not save enough for a house in a normal working lifetime.

And that makes your Plan B very attractive - but keep the job while you get an education, many of us worked while in college, it just takes a bit longer, maybe 6 yrs - that way you will avoid having big loans when you graduate.

On the plus side, you are learning how to live at the 1100/mon level. So some day, when you have a 3500/mon job, oyu will spend 1100/mon and retain 2300/mon (that's 27,600/year), the money will stack up fast.

When you start having 27,600/yr, you must 'invest', not 'save'. If you just stick it in a savings account, it will earn almost no interest and it will be worth only 828,000 in 30 years. But if you invest at 11%/year your 27,600/yr will grow to 6,100,000 in 30 years. As you can see, the interest rate is a very important decision for you so you should learn how to invest before you graduate. (Altho I didn't - I started investing after I got my engineering degree and learned investing by trial & error and lots of reading - I became wealthy anyway, but it was harder.)
Post Tue Oct 30, 2012 9:15 pm
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FYI  Reply with quote  

Note to readers: 1100 pounds sterling = 1769 US dollars

Post Wed Oct 31, 2012 5:42 am
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I would definitely suggest you to start with small things. If you google: tips on how to make money, you will most likely find a lot of very interesting things. There are a lot of options. Just an example:
Start a blog ( maybe a financial one), start uploading interesting content so that you had a good PR of your website. Believe, you will definitely have people wanting to post a guest article on your site. The most popular chrge sometimes charge $100 and more for one guest article.
This is just an idea. One out of very many:
sell things online, do bartering, offer your services ( think of what you do the best), upload funny vidio on youtube and promote it.....
Good luck!

Post Wed Oct 31, 2012 12:17 pm
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It is my suggestion to start with trivial aspects. Keep in mind that you can find different options as far as money making is concerned.
Post Mon Nov 26, 2012 9:22 am
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very good concepts, very helpful! Not only for us but also for coming generation,thanks for sharing with us....
Post Mon Jul 15, 2013 9:51 am
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