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 🤑 Hey everyone,

Last week I promised that the first question that someone asked would be the topic of this weeks newsletter… and I always KEEP my promises!

Before we do dive in, I want to say thank you to all of the emails that did come with various questions, I will try to reply to EVERY SINGLE ONE, and if you guys are enjoy this weeks issue, I will continue to answer more questions going forward!

And as always, my inbox is always open - just hit reply!

So having said that, let’s dive into the question - fully anonymously of course:

🙋‍♂️The Question:

Background:

“I have just finished my degree and definitely don't have 3 months of an emergency fund or £12,500 saved and quite frankly the idea of that terrifies me as it has obviously not been achievable until now with only maintenance loans to go off. My course has been a very practical one and so keeping up a job on the side for me has not been possible. I don't think I am the only one in this position but at the moment it feels like everyone is saying you need to be investing or have x amount saved etc.”

The Question:

I was wondering if you have any advice for younger people/students just starting out. How might I think about working towards all of this with the reality of not really being able to save much, especially when I will be living in London from October on a starting salary?”

🤔 My Answer:

Having very much been in an extremely similar position when leaving university, the first thing I can tell you is that you are not alone and you are also not behind. By the fact you even asked a question, you’re clearly already interested and learning about personal finance, which puts you ahead of 90% of people your age!

So having said all of that, here are some thought’s that can help younger people just starting out in their careers to live a financially successfull life.

1. Keep learning and upskilling

Right now you’re likely to be at the lowest earning potential of your entire career. Like you said, things like saving might seem a million miles away. That’s why learning is so vital, so that as you progress, you can start to act on things immediately. And by learning I’m not only referring to personal finances. Of course, understanding where to put savings (once you earning enough to even have savings) is a great thing to understand, but there are several other areas that can be even more rewarding.

Learning to skill stack can make your more hireable, practising how and when to negotiate pay rises can fast track your salary, building a network can lead to oppurtunities you didn’t even know existed. Right now you are a sponge, and decision you make today can accelerate your life and career more than any other decade of your life.

2. Start good financial habits early… but also enjoy life

Sounds like contradiciting advice, how can I be good with money but also use it to enjoy my 20’s? But the truth is, being good with money includes understanding how you can spend stress free throughout not just your 20’s but the rest of your life too, because you are financially in a strong position.

So let’s start with the first part, “Build good financial habits early”. Even if the amounts aren’t huge, learning to save and invest a portion of your salary today, will ensure that you don’t find yourself 10 years down the line, earning a salary you could only dream of today, wondering why you are living paycheck to paycheck. I don’t care if it’s £10 a month or £100 a month, I can promise you that getting started now is the best financial decision you will ever make!

So then how can I also “enjoy life”… People will constantly tell you that your 20’s are the best decade of your life so have to live them to the max! Go out to restaurants, get that car, dress in fancy clothes because your friends do, oh and what about that skiing trip coming up. A concept I learned recently from Ramit Sethi’s “I will teach you to be rich“, is that the life I have just described is what society sees as a rich life, but it couldn’t be further from the truth. Instead, create a budget for “fun money” that you can spend guilt free, and put it towards the things that truly make you happy and fulfilled, not where the people around you want you to put it. Love fine dining, spend it on that, but you can’t have that and a nice car, choose the one you care about. That is how you can use your money RESPONSIBLY to enjoy life.

3. Live below your means

If I could get one message imprinted on the mind of all young people, it would be that exact sentence:

LIVE BELOW YOUR F*****G MEANS

What does it mean - simple - as your income starts to increase, it’s likely that you’ll want your living standard to increase alongside it.

Here’s what that looks like in reality:

Bonus - let’s go spend the entire thing on that expensive XYZ I’ve always wanted to own!

Raise - time to upsize on the flat I rent.

But what if you could say this to yourself instead.

“I’m completely happy and comfortable with the life that I’m currently living. Instead, why don’t I celebrate by going out for a nice dinner because a raise/bonus is still a big achievement, but then let me stick the extra money towards my savings”

Having that second mindset will accelerate your personal finances faster than any saving hack, tax loophole or meme coin investment ever will.

The end.

I hope you all found that helpful. Like I said at the start, I want this newsletter to become more of a place where you get the financial help you actually want, not the ones that I choose to prescribe to you.

So having said that, over to you!

👇

The first question I receive will be the entire content of next week's newsletter!

Whenever you're ready, there are ways I can help you.

1. ​Hit reply to this email: I respond to every single question I get from these newsletters, so please don’t be shy!

2. ​The Budgeting Template PRO: Most of you have probably tried the lite version, but the PRO is what I use in my day to day life. (use the code ‘letstalkmoney’ for 30% off)

^{DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.}