I need advice about savings! Please help

cluelessdollars

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Hi everyone.

I am 24 years old. I am starting work as a trainee solicitor. This will be the first time in my life I am not working for minimum wage.

I will be earning 44,000 gross. I wanted advice because I really want to try and save as much as I can.

Does anyone have any advice on this? I also want to try and supplement my income by getting active on the stock market. However, I really do not know where to start. I am extremely determined to have a deposit for an apartment in a few years time.

Does anyone have any advice on where to start?
Thanks
 
If you are looking at a time frame of a few years for a deposit I wouldn’t touch the stock market.

Manage your monthly expenses and try to save a set amount each month.

You are at a great stage in life with good earning potential. Whilst I wouldn’t encourage you to blow your money I certainly would encourage you to enjoy it over the next few years.
 
Set up a separate savings account and put money in from your wages as soon as you receive the wages. Don’t touch the savings.
 
As a starting point, look up the 50/30/20 rule, and calculate your equivalent. After that, look at ways to reduce your cost of living in the 50 & 30 buckets and boost your 20 bucket to make it a greater proportion.
It's americanised and extreme in some approaches, but a website like money mustache can help identify ways to reduce your 50 & 30 buckets e.g. via approach to rental or motoring.

Next, workout what you think a "deposit in a few years time" looks like. e.g. is it 25k in 5 years? Does what you've calculated as your possible savings in your 20 bucket get you there? If not, your options are reduce your 50 & 30 buckets some more, or make more money

Lastly, a lot of people focus on being frugal and saving money, not enough put emphasis on how they can make more. There's great scope for growth in your industry so focus on that and progress, making the case for salary increases when you can

I definitely would not look to stock market speculation as a get rich quick approach. If you think you can make your goal and have a bit to spare, by all means speculate, but dont risk capital loss hoping for a Tesla 80% growth mania to get you there
 
Congrats on the job. You've lived on minimum wage up to now. No need to inflate your lifestyle too much when you start earning. Keep it simple. Pick a bank with low fees and a good savings interest rate and put away as much as you can. As others have said avoid the stock market. Not suitable if your goal is to save a deposit.

And Mr. Money Mustache may have one or two extreme ideas or habits but the majority of his posts and ideas are reasonable and doable.
 
As your medium term goal is saving for a deposit on a home, the above posters have given good advice regarding savings.

The one exception i might make would be if your company has an Occupational Pension Scheme and provides employer contributions. I would match these contributions with the same % in employee contributions. You'll hardly notice the difference as it comes out of your pre-tax salary. It also gives you some exposure to the stock market, and starting so young will compound nicely over the years.
 
Congrats on the job. One thing I'll say is think of something nice that you have wanted for a while and treat yourself with your first pay packet. Then set up your separate savings account and figure out what you want to put into it. Pay it first.
 
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