I bought my first house at 22, took out a mortgage, made my first investment in shares and started my first job. Here’s what I wish someone had told me then:
1. Property can go down in value. Two years after I bought it, my house had lost a third of its value. Despite falls in prices since 2007, most people are still property bulls.
2. Compound interest, not diamonds, is a girl’s best friend. Even small bits of savings can mount up to substantial sums over time.
3. A mortgage is a debt, even though it has a different name. How do banks and building societies make money? Out of you, of course. Don’t over-mortgage and pay it off as soon as you can.
4. Pensions are for young people. By the time you hit 45, it’s a bit late to start thinking about planning for your retirement. Just £25 a month into a pension at age 22 could make for a very happy old age.
5. Marriage is a financial partnership. It makes life much easier if you pick a partner with the same financial goals and aspirations as yourself.
8. February 2011 at 8:16 am
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