financial freedom ramblings

[Prince88]

Just some personal ramblings about finance.
so...

UK gov allows you to put 20k in an individual savings account (ISA) each year.
I'm 21 and have 10k saved so far.

If I max out my ISA each for 20 years until im 41 years old I will have over £1Million (assuming 8% interest from S&P)
Maxxing out 20k per year = 1.4k per month. Easily doable.

ofc inflation will fuck this and mean that 1mill will be worth only 650k in 2043 jfl (still decent tho)


Maybe during first couple years outside uni I will work a second job on the weekends to support this. But I don't mind doing that tbh.
I've got good experience working as a chef (3 years) so wouldn't have problems finding a decent weekend job.

Once I finish uni (I'll be 22) maybe I save enough money to put a deposit on a 5/6 bed house. Rent out all but one of the rooms. Essentially my tenents will be paying for my mortgage + maybe make a little bit of profit.

The benefits of this are that taking this money out is completely tax free. No capital gains or income tax.
so...
assuming an 8% interest rate (average S&P return) I could take out 80k tax free each year from 41 years old.
That'e enough to live off realistically but it could be a nice little side income to send kids to private school or go on nice holidays, nice car etc.
I would be able to work part time or work on a business etc.


@Pretty @Ai Impact maybe you'll find this interesting

 

[Prince88]

80k in 2043 will only be worth 50k in todays terms. (assuming 2.5% inflation) which is still about 6k per month completely tax free.

 

[Shieda_Kayn]

8% interest too high mate? Probably 4-5% avg next 20 yrs

 

[YabadiDabado]

UK gov allows you to put 20k in an individual savings account (ISA) each year.

Allows?

ofc inflation will fuck this and mean that 1mill will be worth only 650k in 2043 jfl (still decent tho)

Buying gold is better for inflation

 

[Deleted member 18879]

The life I could've had if I wasn't deformed and brain damaged. Mogs me. hope all my family die and i cash out the inheritance and life insurance ig

 

[Prince88]

An extra 5 years makes it 1.7million...

 

[Prince88]

8% interest too high mate? Probably 4-5% avg next 20 yrs

Nah assuming I invest the money in the S&P. I should've make that clear...

 

[Prince88]

Allows?

Buying gold is better for inflation

Gov has a 20k cap you can put in an ISA. The benefit is that when you take this money out it is completely tax free. No capital gains or income tax.

You can invest as much as you like in general account but you will be hit by capital gains + income tax

 

[Sens]

just some 1st world things i guess

 

[Prince88]

The life I could've had if I wasn't deformed and brain damaged. Mogs me. hope all my family die and i cash out the inheritance and life insurance ig

Nigga you don't have to be a genius to do this.
1.4k per month is not hard. Find a job you find bearable and work 50+ hours. Live with your parents as long as possible.
Even on min wage you can do this.

 

[SubSigma]

Question for Eurocels, do yall only invest in American index funds, or your own stocks? Do you need to hump through some hoops to trade on the New York stock exchange?

 

[Prince88]

Question for Eurocels, do yall only invest in American index funds, or your own stocks? Do you need to hump through some hoops to trade on the New York stock exchange?

UK index funds (FTSE) perform shit compared to American funds so pointless
Modern investing apps such as InvestEngine have made it much easier/cheaper to invest in US funds but investing through traditional brokers you are hit by fairly large fees

 

[Deleted member 26859]

rent out thing was good

however the saving in an ISA thing is SLOW LANE shit, i wouldnt do it

read millionaire fastlane

 

[Deleted member 26859]

An extra 5 years makes it 1.7million...

View attachment 2328946

my dad talks about this lol

muh be rich when ur 50

such a shit way to live ur life. we need to get rich young otherwise its not worth it

 

[SubSigma]

UK index funds (FTSE) perform shit compared to American funds so pointless
Modern investing apps such as InvestEngine have made it much easier/cheaper to invest in US funds but investing through traditional brokers you are hit by fairly large fees

Why do Euros keep saying shit like America 3rd world country with a Gucci belt when their stocks are all stagnant? Do they actually like paying 40% of their income in taxes and seeing it go to gipsies?

 

[Prince88]

Why do Euros keep saying shit like America 3rd world country with a Gucci belt when their stocks are all stagnant? Do they actually like paying 40% of their income in taxes and seeing it go to gipsies?

cos they coping. US is a far better country to live if you are somewhat smart.

 

[Manletmachine]

Who askedb

 

[SubSigma]

cos they coping. US is a far better country to live if you are somewhat smart.

If I was a neet, then I would see Europe as a utopia tbh. I used to be fiscally left leaning when I was younger, but after getting skills in tech and really understanding taxes, I couldn’t imagine working in Europe.

 

[Prince88]

my dad talks about this lol

muh be rich when ur 50

such a shit way to live ur life. we need to get rich young otherwise its not worth it

You can do both... £1.4k isn't loadds.
Like say you earn 4k/month + You live for free because you have tenants pay for mortgage.
That still gives you 2k+ to spend on growing business/taking risks.

Also as you get older and you progress through your career or your business makes more money this will get easier.

Also remember that most things that people spend money on is pointless. muhh just get 29% APR finance BMW to impress girls who don't actually give a shit. As long as you just remove pointless purchases 1.4k is easy.

Legit only things worth spending money on are:
- Occasional travel experience
- Quality food
- Gym membership

 

[Deleted member 26859]

You can do both... £1.4k isn't loadds.
Like say you earn 4k/month + You live for free because you have tenants pay for mortgage.
That still gives you 2k+ to spend.

Also as you get older and you progress through your career or your business makes more money this will get easier.

Also remember that most things that people spend money on is pointless. muhh just get 29% APR finance BMW to impress girls who don't actually give a shit. As long as you just remove pointless purchases 1.4k is easy.

Legit only things worth spending money on are:
- Occasional travel experience
- Quality food
- Gym membership

you do you but i just feel like that 1.4k could get a much higher ROI with propertymaxxing harder or businessmaxxing with it, and get rich within like 5-10 years, rather than waiting until we are 50

 

[Sexually Disabled]

If I max out my ISA each for 20 years until im 41 years old I will have over £1Million (assuming 8% interest from S&P)
Maxxing out 20k per year = 1.4k per month. Easily doable.

The UK will have collapsed by then.

 

[JohnDoe]

JFL if you think there isn't going to be massive events within the next 25 years that completely change this country and the world. Be a good little wagecuck, then when you can finally retire you'll get zapped by aliens JFL.

 

[Prince88]

you do you but i just feel like that 1.4k could get a much higher ROI with propertymaxxing harder or businessmaxxing with it, and get rich within like 5-10 years, rather than waiting until we are 50

I'm gonna try get rich in my 20s by taking risks whilst I'm young but I think it's good to have a backup.
Also even if you get rich young its still a good idea to put some of those profits in an ISA.

 

[Chadelite]

@Prince88 unfortunately your property will be taken away due to carbon emissions

By 2030 you will own nothing and be happy