Can someone please tell me if I'm in a good position?

[JamSandle]

So...im completely illiterate when it comes to finances. I've been able to stay at home most of my life (early 30s) and after a period of living overseas and travelling which blasted my savings I've built up 30K.

I'm still at home but not sure if I should stay there and keep saving or make the move to move out.

If you were me, what would you advise?

I have no assets but also no debt. My 30k is in isas etc.

No this isn't a troll post. I just want to know what the best thing to do to protect my financial position is.

I talk to my dad but he literally tells me nothing. Perhaps likes that I'm 'dependent' on him in many ways.

Am I doing okay? How can I do more?

Thank you.

Yes a huge chunk of it goes on travel which is still a big passion of mine.

My goal in 2023 is to limit the travel and put much more away.

I've considered looking into work that will pay me to travel.

Of course it’s better to have started saving and investing earlier, but now’s still a better time to start than tomorrow, and there’s no point thinking “what if” about things which you can’t change.

£37k is a reasonable wage in the SE, but not a great one; do you think it’ll rise significantly in the coming years, or if not are you thinking if what else you could do to move into a higher-paying one?

I'm going to ask for a raise at my mid year review, I do a second job for a hit extra and I'm also training in something I can do on the side. But yes I'd definitely like more money and am working on what I can do to achieve this.

The first step to getting your finances in order is to get a handle on this; write down exactly what you have coming in and going out each month, and then people will be able to offer better advice.

This. You need to have a really solid understanding of where your money is currently going to do any kind of planning. There are lots of apps etc that people use to do this if you would find that helpful.

After that you need to be clear on your goals. It's difficult to know whether you are on track without knowing where you are going.

Thanks Mia. I'll definitely look into this. I think part of the challenge is im not really sure myself on my goals I.e. moving out, having kids etc.

That is sensible if your priorities are getting your finances sorted and buying a house. It’s all very fun travelling but it won’t get you a house. Limit travelling, put as much away in savings as you each month and you will soon be in a good financial position considering the amount you have available to save each month.

Id recommend opening a lifetime isa and putting the max allowed in each month as the government will top it up 25% and you can use it towards a house deposit. Open a further long term savings account and put the rest of your savings each month in it plus your current savings. Interest rates have gone up so you should get a decent rate.

@JamSandle my bank has financial advisors who I met with annually since I started working they were helpful. A basic microeconomics and macroeconomics college course was also good (even if only on a very rudimentary level).

Sounds like you are doing OK OP. At least your mind is on saving and the future.

I was a late starter but everything I learned was from moneysavingexpert.com and Martin Lewis.

Great that you are paying max into your pensions.

Bide your time for say 12 months as the housing market will likely cool off and hopefully mortgage rates stabilise. Cut back a lot on travel, having maybe one big trip a year and save the rest.

Look into remote/ flexi work opportunities so that you could buy in a cheaper area.

Whatever you do buy, I think it needs to be flexible. Somewhere YOU would be happy to live in, maybe with a partner and even child, for next 5 years. Also it should have a spare room you could rent out if finances get rough. Also, something you could rent out easily as a whole property, if you ended up living abroad which sounds possible.

Good luck 🤞

PS. You are not illiterate when it comes to finances. I've met plenty who are and they don't have two pennies to rub together, despite earning way more than you. No savings whatsoever.

im completely illiterate when it comes to finances.

on the basis of your opening sentence alone

Np, you are not in a good position

I think if i Was in your shoes I would aim to save about £1300 per month for a year and buy a property.

Open a LISA and save as much into it as you can. Look to buy a house in 2024, when the housing market is expected to hit a floor. But also if you and your dad are happy then you don’t need to move out!

I'd save in a LISA and then look for a partner to buy a home with. Do you have any siblings and would your dad do some equity release to add to your deposit?

Is one of the ISAs a Lifetime ISA? I’d open one if not and put £4K in. The Government will top it up to £5k at the end of the tax year. Lifetime ISAs are for under 40yr olds to save a deposit for first home and save towards retirement.

Id do that now while looking for a home to buy. That way your savings are growing faster than inflation.

I think you are looking at this upside down OP!

Firstly - money and finance is there to serve you, not the other way round.
Think of it as a tool to help you achieve your goals and keep you secure in the world. Forget about what you 'should' be doing at your age.

Secondly - The question is: what do you want from life?
Do you want to own a home? Are you happiest living with your dad, and enjoy his company, or do you want to branch out? Are there other things or experiences you want to do or buy that are important to you? Do you enjoy the freedom of not having financial commitments of a mortgage? Are you wanting the security of having a property, or just worried about missing the boat because of what you hear on the news?

Remember, whatever you own, owns you, in some sense. Houses need financial commitment and risk. They need maintaining and take time and money. Don't take this on unless it's important to you and your own life goals. There will always be time to reassess later.

It sounds as if you're not really sure what you want from life. So take some time to think on that and adjust your financial plans to fit around it to suit you, not the other way around. What will make you content? There is no right answer here only options, but get in the cockpit and pilot your own plane of life - don't be a passenger to others expectations.

I think you have done well to save 30k OP. Lots of people blow everything or are in debt so we'll done for saving that amount. Generally banks like you to be able to put a 10% deposit on the price of the house and then you can take the other 90% as a mortgage. However the bigger the percentage of money you can put down the smaller mortgage you would need. Mortgages are designed to run for a long time with a lot of interest so worth looking at mortgage calculators and seeing how you can pay less. Generally if you can afford it taking a mortgage over a shorter term means you pay less interest over all. I think I would save hard and live at home for another year to max your deposit amount. Keep an eye on interest rates and house prices around you. Money saving expert is a great website with lots of tips plus money matters here. Good Luck!

Well you have a pension so that’s good.
You have savings so that’s a good start.
You have enjoyed lots of travel and have a good job - great!
Wouldn’t buy right now as it’s all a bit chaotic and you are happy.
You have changed to a saving mindset but currently aren’t saving enough to live independently covering utilities and mortgage. Cut right down. Get a grip on incomings and outgoings and when you can handle your own finances realistically look again at what mortgage repayment you could afford. If you could afford, whether you would want to be alone or to rent a room etc.

I see you have mentioned goals in an earlier post. Again, it sounds as if you're not sure of yours.
Having seen this, I'd like to add to my previous post....

If you're someone who doesn't feel that distant goals are important to you, please believe that this is a perfectly valid and affirmative life choice, and embrace it. Your aim might be 'take life as it comes, one day at a time'. A minimalist approach would be a good fit for this...enjoying high quality experiences and travel, owning a few highly valued quality possessions with just enough for what you need and take pleasure in, without any excess to trouble you.

If this appeals to you, then arrange your financial life accordingly. Keep your financial commitments small, and continue to build a large investment portfolio, pension and cash safety net. It will allow you to weather any eventuality, buffer future circumstances and change direction easily should your outlook change.

A good option in these circumstances, if you feel life is becoming somewhat aimless and drifting, is to narrow the time-frame and focus on daily and weekly habits you'd like to develop, and work on those rather than long term vistas.

If you enjoy living with your dad but are just worried about not having a property of your own, perhaps look into buying a small affordable holiday cottage or apartment in the future, which you could both enjoy. It would earn some income from short term lets but avoid the pitfalls of a buy to let and keep flexibility.

Definitely have a good think about your short medium and long term goals.

This will guide you in how you manage your finances now.

You have all been so wonderful. Thank you so much.

I've never thought I wanted children etc so I've always focused on travel and experiencing things I enjoy. The death of my mum highlighted for me how much I wanted to embrace my life.

But as I'm in my 30s and my dad is getting older and we are in a financial crisis, I am wondering if I should make more sensible decisions especially if I change my mind about wanting children etc in a few years time.

If I won the lottery, I'd want to keep travelling, volunteering, learning and also have a stable property.

As the above is unlikely, I guess I should think about those short and long term realistic goals.

seekingasimplelife gave some great advice. Think about what you would like your life to be, not what you should be doing.

Do you get on well with your dad? Are you happy living there? If so, maybe you could plan to stay for another 2 or 3 years, build up a sizeable savings amount and see how you feel then. I wouldn't rush into buying a house just because that's what other people are doing.

The only other thing I would ask is, what if your father got ill, or need help with care? Is that something you have thought about. Not that you have to do any of that, but living there with him, there might be an expectation that in return you will support him in his old age.
Have you discussed any of this with him?

It's good to think about when you'd like to retire and how you plan to fund this, even though it seems a long way off at the moment.

It could be worth seeing a financial advisor once you have had a good think about what is important to you.

The advice to ignore what other people might be doing and make your own path with your own goals is really sensible.