plaguedbyfoibles wrote:
Hi, thanks for the detailed response.
To answer your questions, I am in my late twenties (27), working as a mid level web developer but at an agency whose pay scales aren't the greatest (I have provided my estimated net annual salary for this year already).
My highest level of education is sixth form / FE college (both A levels and BTECs at level 3 respectively), although I have been adding to my raft of qualifications somewhat since working full time, mostly in the form of fully funded professional certificates.
My dad has saved a fair amount for me over the years, but always through savings accounts, which is not viable in the current climate of low interest rates.
Currently I have no debt.
I have an emergency cash buffer in place.
What you are doing well:
- no debt
- continuing professional development (even better that it is employer funded)
- cash cushion in place
- starting to think about longer term finances.
This is an excellent place to be for a 27 year old. Well done.
It is a good idea to participate in the workplace pension, to take advantage of the employer contributions.
Beyond this, pensions are probably not your highest priority, as you are likely to have more near term calls on your money than retirement. You have not mentioned marriage/starting a family/mortgage, any of which will change your priorities.
Any additional savings you can afford now should probably go into a S&S ISA as you would have the flexibility to access sooner.
Given the scale of the sums you are likely to be able to put aside, investing in single company shares will not be cost effective and give you sufficient diversification in the near term. Your investing possibilities should probably be focused on collective investments in the form of index trackers/Exchange Traded Funds (buy the market) or Investment Trusts (shares of companies that owns shares of other companies).
A good place to start reading up is the Monevator web site, particularly the passive investing bit.
https://monevator.com/