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Financial Advice for a young'un!
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Right so I'm just after general chitter chatter and advice . . .
What would you guys suggest financially. I am 18 years old and working as a live in nanny. I get paid weekly very little but more than enough to get by. So far I just have a basic ISA and a current account with Abbey. I keep enough to comfortably get by in my current and put all I can afford in my ISA.
Am I right in thinking that my money is better of in an ISA because I get better interest?
And thinking long-termly. When I leave this job in July 09 and move back home whats my best options. Are house prices going to be dipping and then rising meaning it would be better to get a mortgage once I have a job back at home. Renting is dead money right as everyone says? Or is it necessary and an alright thing to do for a couple of years?
How have the older people gone from earning at my age to having a house and mortgage, running a car and supporting a family? Do you wish you had done it a different way?
:thumb:
What would you guys suggest financially. I am 18 years old and working as a live in nanny. I get paid weekly very little but more than enough to get by. So far I just have a basic ISA and a current account with Abbey. I keep enough to comfortably get by in my current and put all I can afford in my ISA.
Am I right in thinking that my money is better of in an ISA because I get better interest?
And thinking long-termly. When I leave this job in July 09 and move back home whats my best options. Are house prices going to be dipping and then rising meaning it would be better to get a mortgage once I have a job back at home. Renting is dead money right as everyone says? Or is it necessary and an alright thing to do for a couple of years?
How have the older people gone from earning at my age to having a house and mortgage, running a car and supporting a family? Do you wish you had done it a different way?
:thumb:
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Comments
I still live at home, have hardly any outgoings and save as much as I can, still cant afford anything near a studio flat for the area I live in.
But do you not feel like your getting absolutey nowhere?
I just wonder how they expect people to get their foot onto things like the property ladder and move on up when no one can grab a thing in sight . . .
Sometimes, but I want to stay in the area I am now and I know its going to cost a bomb to get some where to live.
House prices have been far to high for years, there starting to come down to a mor affordable level. I wouldnt want a mortgage just into my 20's anyway.
Why though? I mean don't get me wrong I understand the whole attitude to living your life when your young and not getting weighed down with a mortgage but surely by getting a mortgage whilst house prices are low then you are getting your foot on the ladder and may just be able to start to invest in something.
I only say because I was talking to someone in Ibiza who got a mortgage in their early 20's and she was gabbling onto me about house prices and investments and said she would urge her daughter to invest in property from a pretty low age when she was stable as she thinks its the way forward.
Just wondering if people agreed - as I take no real interest in the matter but it caught my attention as to something I should perhaps consider...
So in 10 years you could be earning tax free interest on £30k which is a lot of tax free money to have!
You shouldn't think of renting as dead money. It's the money you pay when living there. If you get a mortgage, you will have to pay interest which is just the same kind of dead money. It gets quite complicated and you need a proper legal person to give proper financial advice but from what I can tell over the long term it starts to work out better to buy a house.
But if you were renting, say, and from the money saved invested it in stocks and shares maybe, you might work out better than that too.
Rent is IMO dead money, my mortgage is cheaper than any place you can rent, but the thing on a mortgage is your actually paying off something that will be yours once the mortgage is finished! I pay a mortgage for 30 years and have a house, you pay rent for 30 years you still have nothing!
The only problem at the moment is actually getting a mortgage, a lot of people can't and therefore have no choice other than to rent!
If you can get a mortgage then that IMO is the way to go.
Also, once again I'm no expert on the stock market but the stock market is so volatile then you have no assurances that your money is even safe, nevermind assurances you will be better off in the future, Stock market trading (unless an expert) I believe is gambling....not something I want to do with my future!
I bought my house 4 years ago (was forced into it by my parents moving to Greece) but I'm sooo glad I did, I bought a run down house that needed ripping out and modernising, I probably bought at just the right time to ensure I won't lose out with the current dip in prices!
This is my house and I live alone, when/if me and my Girlfriend decide to live together we will try to buy another house and I will try my hardest to keep my house as well....people renting it and paying off my mortgage.... and also as back-up in case things don't work out
Ah, no - this is all dependent on where you live and what the house prices and rental costs are.
Mortgage interest IS dead money, as is rent - but they are a necessary bill in order to have somewhere to live.
On a mortgage you are paying an investment (anything you pay off the mortgage) and your interest which is a kind of dead money. It's not really dead money, as it's paying for a service, but in the context of this it doesn't really matter. Rent is also not really dead money as you're paying for a service.
Houses are an investment like any other whether it's risky stocks or whatever, they have a risk associated with them and they have a return associated with them. So hypothetically as I said in some situations you would be better off spending your 'living money' in rent vs. mortgage interest and then investing in something else. Then in less time than the mortgage would mature you could buy a house outright if you wanted to. That's hypothetical, of course, and I wasn't trying to give financial advice, just food for thought that buying your own house isn't the be all and end all, and people shouldn't panic if they can't afford it, because all roads lead to rome and all that...
You could argue buying bread is dead money, because you could buy your own bakery and make your own bread. *shrug* same kind of thing...
With rent your going to be paying roughly the same amount as a mortgage every month but you don't have a house at the end!
So please someone explain, how renting could ever make you better off than a mortgage?
At the end of the day with rent no matter how much you pay your still going to have nothing at the end of it, with a mortgage no matter how much you pay you will always end up with a house....to me it seems quite obvious but maybe I'm dumb lol
My mortgage is quite cheap for a couple of reasons, I got it over 30 years instead of the normal 25 and also I got a house at quite a decent price! It was advertised for 75k and I knocked them down to 66k and then with the deposit my mortgage was for only 63k! Like I said it needed totally re-furbishing but now, only four years on and with the dip in the housing market, taking into acount the re-furb my house is worth in excess of 100k. I could rent my house for £500 a month (easily) and I pay around £370 a month mortgage! The mortgage is on a variable rate and it started out around £370 4 years ago, it went up to over £400 but is now back down!