Best Financial Strategies By Income £30k, £60k, £100k+

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Today’s video is all about the best financial strategies depending on what level of income you have, whether its £30k, £60k or £100k+. I’ve progressed through all of these income levels in the past 7 years so today I wanted to share some of my own experiences and own financial strategies that i’ve deployed at different income levels. Hopefully you guys find this useful!

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*Disclaimer: Your capital is at risk. Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.*

*Disclaimer: All ideas presented within this video are that of my own based on my own opinions. Please do not consider any of these videos as financial advice as I am NOT a financial advisor. All financial decisions and choices made are solely your responsibility. The views shared in this video are just for entertainment purposes only. When investing, your capital is at risk and can go up in value as well as down in value. You should consult a suitably qualified professional when seeking out investment advice in order to fully understand the risks associated with investing.*

[clarkeysam]

Just to correct a few things:

APR is the rate after it has compounded each month for a year.

The 4% rule doesn't say that your portfolio shouldn't go down in value, it's that you shouldn't run out of money over a typical retirement length.

[beltingtokra]

Thank you for raising how hard it is for single people. I live on my own and it can be hard, but in the north i can just about cover my expenses for 3 months of bills. Keeping out of expensive debt is really key. But finding a permanent iob that allows progression is even harder. I dont know how people in more expensive areas cope 😢

[The_Summit_Wanderer]

I agree with pay yourself 1st ...it's transformed my habits ...wierd how you can think you're skint but in fact you spend in a silly way ...switching to that mentality I've saved 5.5k in just over 6 months ...I'm on £32k

[mjax]

Thankyou for including the relatively lower paid. I'm one of those "between" people, below state pension age and able to manage on a low yet adequate income from public sector pensions. I value having free time. However much of what you are saying is still relevant to me.

[LawrenceTimme]

Buying tyres should be in your budget, not an emergency, they wear out slowly over time so it's obvious when they'll need replacing with planning. An emergency would be if you needed to replace a tyre when you get a puncture, but it's not worn out yet, so wouldnt normally need replacing.

[tomroberts]

Great video as always Mitch!

Totally agree regarding lifestyle inflation. My outgoings haven't increased all that much over the last 6 years (apart from inflation in bills etc) but my salary has increased from £34k to £80k.

The compound effect is also kicking in now too when I started out I was making a few quid per month in dividends, next month, my dividends alone will be over £500, which will all be reinvested :)

Start small and grow from there! Everyone has to start somewhere, whether that be your first £400 in VUSA or, in my case, £100 in Lloyds shares!

[beluga.]

I save/ invest about 90% of my money, im 19 and living at home so trying to build up a big down payment on a house over the years im living at home :)

[tx]

Many people get into financial trouble when they get a pay rise as they don't allow for tax and workplace pension deductions.

Many people think that getting a £1000 pay rise means an extra £1000 in their pocket, whereas it'll be nearer 67% after 20% income tax, 8% NI & 5% pension contributions.

One of the best hedges against inflation is to buy extra groceries each week. Especially if its on offer.

It's surprising how that extra £10 spent on every shop on things like coffee, soup, beans, etc, can help in the long term, and will help see you through when the shops run out in times of panic, etc.

Obviously longer life products such as in jars, tins and packets, providing you can afford it and have somewhere suitable to store it.

[bphillips]

Also, although the capital appreciation on property may only be 5.8% per annum, you have put down 25% and 75% is the mortgage. However, you gain the 5.8% on the whole property value, not just your deposit/investment 👍🏼

[The_Summit_Wanderer]

And as for credit card debt...be savvy ...very savvy ...I've just save a small fortune taking a 0% cash transfer to pay down my 8.7% mortgage

[Whizzer_]

Far too many people in the UK think investing in the stock market is like gambling - keep getting the truth out there!

[Kalarandir]

I am not entirely convinced that the amount you earn should have a dramatic influence on how you save/invest. Most people will live a life based on how much they earn and spend accordingly and lifestyle creep on increased earning is the financial killer. I know enough people earning far more than myself and are in a far worse financial position.
I believe that age, circumstances, and location are far more important.
As myself as an example I earn below the UK average wage, so when I finally looked at my finances and in particular my pension, even though decades off, I saw that my current trajectory was going to be unpleasant. So it was about getting my ducks in a row to create surplus. I know influencers talk about multiple income streams, but for the average person that is bollocks.
For me, reducing my rent and travel expenses was the way ahead, and so moving closer to my job which was 35 miles away, and reducing my rent to having a mortgage of half that amount, gave me enough surplus that future wage increases were not eaten by a higher rent and fuel bill, but went into saving/investing.

[willlsmith]

Been enjoying watching your progress over the last couple of buddy

[bensnell]

Great video Mitch. With high interest rates at present, I think it would have been great to make people aware of how PSA applies and maybe don’t just keep your money in a Savings Account ie. Work out what the PSA threshold is and use some ISA allowance (if possible).

[garycroft]

Interesting video, however at £100k income you need to consider tax effeciency and planning. Pension is hard to beat at the 40% tax threshold.

In addition once you have £500k/£1m individual/couple of assets outside a pension you are in scope of IHT.

Perhaps morbid to think about, but having a 40% risk on excess is worth thinking about. Also as you get older it can be harder to pivot assets from inside estate to pension.

Personally I'd like the government to increase IHT and just include a pensions component to simplify, but now there is no pension LTA this majes pensions a tax planning tool, although arguably it shouldn't be.

I've seen on your other video that you have £160k, but with the way you are accumulating, you could have an IHT problem yourself in the next 5-10 years!

[andrewkingdon]

Don't forget that if you contribute via salary sacrifice you save NI too. Not just 40% tax but NI as well.

[louiscook]

Love how the sponsor is Hello Fresh which is basically a service where the user is paying a premium for their food. I understand you have to have sponsors to help fund your videos but seems counterintuitive and misleading promoting such company.

[PokePond]

I don't understand why you would ever chose to be a landlord when you have to leverage yourself, have the risk of tenant's not paying and damages, all for 8-10% yield on an asset that is very non liquid. Why not just have a QMMF or higher stock portfolio and make a similar amount with none of the headache? Please do help me understand your thinking, as I hope to one day be in your position financially.

[cuk]

How save money . Don't buy from hello fresh . Shop locally n save money. Tip no1

[aerial]

When I go into the supermarket and finally pay for my goods the amount people pay for their groceries on their credit cards is frightening. I wished in my 20s to my 40s I was more frogol with my money but I am glad I took out a private pension in my early 20s

Excellent video 👍