I'm 23 with €1000 (after expenditure) earnings per month. If you were me, how would you invest it?

[emyrs]

Could you show me some savings/investing method and what will I earn in 5 years time if I kept at it?

Assume I'm ready to invest broo xD can't answer a question with "save up". Assume I've got no debts and I've got a lotta savings bulk and pension. I've got expenditure covered and some personal money ready to spend. This 1000 euro is absolutely ready for investing / spending personally.

 

[discoveringyou]

@emyrs follow the stickied flowchart

 

[emyrs]

@discoveringyou Where

 

[snpdoll11]

@emyrs At top of the subreddit:

https://www.reddit.com/r/irishpersonalfinance/comments/w15j0e

 

[emyrs]

@snpdoll11 Tysm! Im new here so I didnt see that!

 

[snpdoll11]

@emyrs Assuming you have been caught up on the steps in that chart you may have missed (budgeting, settling debts, maxing pension, building a home deposit & proof of ability to save via regular savings in a bank), and you are actually at investing stage - then I would go with ETFs through an app like Degiro. There are pros and cons to any investment strategy, but that's what works for me. Easy to build with a pretty reliable return, low fees, and low maintenance in terms of tax reporting.

If you go this route, two mistakes I made for you to avoid. Learn the difference between Accumulative and Distributing types ('A' or 'Acc' rather than 'D' or 'Dis') - Acc types will lower the amount of tax reporting required as you don't get quarterly dividends. Not saving you money, but saving you hassle. Secondly, look for ones that are domiciled in Ireland as the taxation is simpler to understand. You'll know these as the ISIN number will start with an IE.

You'll want plenty of your own research of course, because your situation and my situation are bound to differ. Here's a good plain-english primer, with Irish investors in mind: https://mrsmoneyhacker.com/investment-options-in-ireland/

 

[scollins]

@emyrs Start a pension. Putting away a bit regularly now means you won’t have to put away a ton in your 40s and 50s. And 60s.

 

[emyrs]

@scollins Hello ! I do have a pension scheme :3 a little i started that recently

 

[scollins]

@emyrs You should try to increase the amount you put away as your income increases. Aim to maximise your tax free amount.

 

[emyrs]

@scollins Yessir tyy! But how much? I'm using 1000 euro as a base. How much percebtage goes to pension and investing?

 

[ironfaith]

@emyrs It depends on how long you are investing for?

What are you saving/investing for?

Are you saving so that you can retire at 55 and live a nice easy life. Are you saving/investing so that you can buy a house in 5 years time? Are you saving/investing on the off chance that you can make 300% profit but with the risk that you might lose it all.

What do you want?

 

[emyrs]

@ironfaith I want a house, grand piano, and some kids.
I don't really care what age I retire, but lets say 50~60
I would love to set a mortgage for a house in 5 years time tho.

Don't want an instant bulk. I want long term which griws slowly only.

Ty for these question!

 

[godenthusiast]

@emyrs We don't know any of your outgoings so it's next to impossible to give you an estimate. Are you renting? Paying money to parents? Loans? Car? If you have no outgoings you can maximise the savings up to whatever you don't use per month but I would say minimum 30% would be good - again that's if you have no outgoings

 

[emyrs]

@godenthusiast No renting, my parents dont want cash, got cars paid for, no loans. 30%! Like 300 each month in investing then?

 

[godenthusiast]

@emyrs And if you have plans like moving out, travelling etc saving more is better. Consider your savings in medium term and long term buckets.

All of that said I never did it when I was your age and in ok now, but I'm just ok, I really wish I had made more use out of the time when I had no rent to pay to save money lol