I am in a fortunate position due to some very unfortunate circumstances and I need advice

[csa1991]

I'm a 18 y/o (M) and long story short I recently got out of Foster Care and receive an allowance to help me live on my own. It's a quite a bit of money a week and on top of that I get grants for college and with a job I have quite a bit more income than most of my mates.

I will be given this Allowance until I am 23 or leave college.

My question is what advice can you give me on what to do between now and 23 so that I'll be in a good place financially?

 

[khota]

@csa1991 I think getting a good degree with good grades in a sector with healthy demand for workers will set you up well. Of course keep you emergency funds and save what you can, but the degree part is definitely the most important now.

 

[csa1991]

@khota I appreciate the reply, I think with regards to College I am in studying for a job in a very healthy sector.

 

[emm3635]

@csa1991

1. First save up 5000 euros in savings. This can be a savings account at your bank, but it is likely that you can get more interest with another bank or institution than your own. Googling high interest savings account + your country may help you find savings accounts with higher interest rates. Make sure the bank is from your own country and that your deposit is secured by the government (EU legislation protects bank deposits in the case of bank failure. Often this is called a deposit guarantee scheme). This money is your emergency fund, only to be used in case of (true) problems.
2. When you have that kind of money, I'd start thinking about whether you need to save up some more money in a savings account for near-future needs or wants. For example, by that time you may want to own a good second-hand car. Or you may need to save up so that you have a deposit for the apartment that you may want to move to at some point. Or you want a thousand euros so that you can travel to job interviews & get some nice clothes for the interviews as well.
3. When you've got your near-future wants and needs covered, I'd start investing for the more distant future.

As a general advice, a lot of information on investing from within your country can probably be found on the internet, but perhaps also in books at public libraries. The "Related subs" listi in the righthand column may have a sub in your language where more country-specific advice is also available. It's good to be aware that different investment tactics are best in different countries, for example because of the different way assets and gains and dividends are taxed in each European country.

 

[csa1991]

@emm3635 Wow. I cannot tell you how grateful I am for this extensive reply and I thank you. This has made me feel a lot more grounded about the whole thing and I can assure you I will look into everything you have mentioned. Thanks from

 

[emm3635]

@csa1991 You're welcome.

So for Ireland also try /r/IrishPersonalFinance

 

[strivingservant]

@csa1991 Aside from getting a career and living life, learn how to make your money grow. Compounding interest and all, but in practice.

https://www.bogleheads.org/wiki/Getting_started

Bogleheads is a forum based on the philosophy of Jack Bogle, who started Vanguard. It's a great resource when starting out.

 

[csa1991]

@strivingservant Ah Cheers Appreciate you taking the time to reply