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How would a young woman become financially independent?

109 replies

AbsentinSpring · 07/09/2022 09:53

Without help from parents or an inheritance.

I've been pondering. I bought my first house (2 up 2 down Victorian terrace in not great area) 30+ years ago. I was single, worked in admin and earned slightly above average wage for that role. House cost £30k which was slightly less than 3x my salary and the interest rate was, for a time, 15%.

How could a young woman (who wasn't a hedge fund manager or corporate lawyer or such like) do that now?

That same house is now selling for £350k. And it's not in London or SE.

OP posts:
BooseysMom · 07/09/2022 17:08

There's no way they could be financially independent now, not unless they live like I did in a house share situation. The only way out of it was to rent with my OH. I was in a low paid admin job and gave that up when I had DS as it wasn't worth going back. I'm now working p/t whilst DH supports me & DS. I couldn't live on my own if I wanted to.

itsnotdeep · 07/09/2022 17:08

You're conflating financial independence with buying a house. But it isn't the same thing, particularly now.

Financial independence just means being able to support yourself. Not being dependent on a man for your income/house etc.

By your definition, I wasn't financially independent when I was a corporate lawyer because I bought my first place (and subsequent places with my then partner/husband). But I never relied on him in order to be able to feed myself, to buy clothes, and most importantly I was able to afford to be able to leave him, to divorce him. That is what I teach my daughters. - it's not about being able to buy a property (which will be beyond alot of today's children without a substantial step up from their parents), it's about not being reliant on a man. So you aren't stuck in a relationship.

mathanxiety · 07/09/2022 18:34

@AbsentinSpring

A MFL degree plus a humanities subject is a truly excellent choice.

It's what one of my cousins did. She was hired by a major European bank straight out of her Irish university and has been there for fifteen years, working in a specific area of the bank's operations.

A friend of DD2's who did a MFL (Spanish) plus psychology in a run of the mill US university, followed by a masters in human resources at a decent one, recently pushed her salary past the $200k mark. She is 25.

A MFL degree is a huge asset in international banking and in grad schemes run by multinationals regardless of the lack of a stem background.

Another avenue is international project management in any industry.

Interested in this thread?

Then you might like threads about this subject:

AbsentinSpring · 07/09/2022 20:41

Thanks mathsanxiety that's useful to know.

OP posts:
latetothefisting · 07/09/2022 21:43

I'm going against the grain here but I don't think it's as impossible as most people are saying. I'm 34 and bought my 1st house, alone, aged 27, without any financial help from parents, at the time never having earned more than £21k.

I have 2 younger siblings, both of whom also bought before they were 30, one alone, one with a partner (but together they were earning less than 22k as her bf was still an apprentice at the time and she was on minimum wage so I think it's relevant).

Nearly all of my female friends, acquaintances, and work colleagues (say about 30 people) and all of both sisters' friends (another 60 odd) owned their first houses well before they were 30. Most bought with partners but quite a lot bought alone. None are on what I think of as amazing salaries, in fact many are quite low.

How?
Mix of:

  • Saving HARD for a long time (the way I did it)
  • in comparatively cheap areas (outside of SE but still near major cities)
  • Getting small ish amount (I don't know anyone who has had thousands but a lot had, say, 3-10 grand) from parents.
  • Working abroad (e.g. dubai) for a few years to save fast
  • Living with parents before buying, or at the very least in very grotty houseshares
  • Buying cheap properties first - everyone always asks how anyone on an average wage is supposed to be able to afford the average house price, but of course they arent - if you're a single person getting your first house you aren't supposed to be aiming towards the bottom of the market, not the middle!
  • Didn't have kids until they had bought their first house (probably the biggest commonality between all of them!)

Don't know anyone who has bought without doing at least one, usually several, of these. Living with parents is probably the most common - of my friends of a similar age (and by this I mean my work colleagues, old school friends, uni friends, friends I know through hobbies) the only 2 who are still renting are those who moved out aged 18 and, after a few years in house shares, rented nice flats or houses either alone or with just their partner. Even if you can't move back home, that's the difference between a few hundred quid a month for a room in a shared house, and around a grand a month.

I do think a lot of people exaggerate how completely impossible it is to be financially secure alone. It's definitely hard, and has got harder (particularly re: house prices), just over the last 2 years, but, for example, according to this
www.bbc.co.uk/news/business-23234033

If you can save a £10k deposit (which isn't hugely excessive) and £1k a month mortgage (again, perfectly doable, particularly if you are earning the UK full time average of £31k (median) or £38k (mode) - you can afford to buy a 1 bed house/flat in 89% of the UK. If you want a 2 bed its still 73%. If you can increase your deposit to what it says is the national average (although I agree it's high, although I had close to that), then "96% of the United Kingdom that has housing you can afford."

Blueberrywitch · 07/09/2022 21:51

Study computer science and go into development and architecture roles - companies are DESPERATE for women in these roles.

thecatsthecats · 07/09/2022 22:43

*Buying cheap properties first - everyone always asks how anyone on an average wage is supposed to be able to afford the average house price, but of course they arent - if you're a single person getting your first house you aren't supposed to be aiming towards the bottom of the market, not the middle!

thecatsthecats · 07/09/2022 22:47

Buying cheap properties first - everyone always asks how anyone on an average wage is supposed to be able to afford the average house price, but of course they arent - if you're a single person getting your first house you aren't supposed to be aiming towards the bottom of the market, not the middle!

(bugger, fat thumbs)

I agree with this, and about the benefits of getting on the ladder early. Our house is a top-end 3 bed terrace for our area, which I bought with my husband, but we'd have been able to individually afford the bottom end of the market. And that doesn't even involve going that far away. A few streets and one less bedroom, in fact.

Aintnosupermum · 07/09/2022 23:02

To buy a place for £350k in London you need an income of £100k to afford this yourself. Work back from jobs that provide that income.

If I were to do it again I would qualify as an accountant at a mid tier firm and spend 3 years working in the Middle East at big4 to save for a deposit in a low tax environment while also growing my career. Income wise, you don’t earn much at big4 but when you leave the pay is excellent in private.

Lots of jobs pay at this level if you are good and well qualified. You can also start your own business and grow your client base successfully this income is very achievable before 30.

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