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

[emyrs]

@scollins I see :0 so if i had kids and i invested 100 euro each month for each of them... how much exactly will i get when they turn 20?

 

[scollins]

@emyrs Based on 4% interest it would be €33560.

You can play with the numbers here: https://www.thecalculatorsite.com/finance/calculators/simple-interest-calculator.php

The graph on that page illustrates it well. Bump it up to 40 years and it nearly doubles the amount saved.

The advantage of a pension is that it’s tax free, so if you are paying the 40% tax rate then saving €100 only costs you €60.

 

[emyrs]

@scollins Fantastic! Ty but what do you mean about the tax rate thing?

 

[toasterwithagun]

@emyrs Pension contributions are paid before PAYE tax is deducted. If you are on the higher rate of tax this is 40%. For example if you put €1000 into your pension, €1000 is invested and starts to grow. If you instead decided to not add to your pension and use it instead you would get €600 (€1000-40% tax)

 

[emyrs]

@toasterwithagun I seee the deal with pension now :0 ty!