This financial strategy should suit you if you’re in your 20s to early 30s, first job, and starting to build wealth.

You have time on your side, so don’t worry if you can’t contribute much to your investments – a little, over time, can go a very long way.

Buying your first property may be the right decision if you have a deposit. If not, building wealth in a Stocks and Shares ISA should give you this opportunity – and perhaps more – later on.

Minimalist life focus

• Cut lifestyle inflation – You don’t need to own something because someone else does, and you don’t need to “upgrade” everything. Ask yourself “Do I really need it?” and “Does it have real value?”, as this will give you a clear picture of whether it’s a worthwhile purchase or not.
• Rent modestly near work, share, or rent a room – This will free up your disposable income significantly, allowing you to invest, build wealth, or build a deposit on your own home.
• Buy modestly, with a view to using the property for future income – A property is better viewed as an investment, not a luxury. Buy what you need for now, not later. Save fees, taxes, mortgage interest, amenities, hefty insurance, or a need to fill empty space with expensive furniture. If possible, rent a spare room and have a lodger pay your mortgage bills, and keep a view to using the property as a rental or Airbnb later, if that’s the investment route you wish to pursue.

Financial strategy

• Invest in index funds via an ISA (Vanguard LifeStrategy, Fidelity, etc), or for more tax efficient long-term wealth utilise salary sacrifice offered by an employer to build a pension.
• Set up a direct debit, the day after you get paid, to contribute 20-30% of salary into investments before you have the chance to spend it.
• Avoid car loans and credit cards and avoid debt at all costs. Use public transport or a second-hand bike if you don’t need a car.

Your goal

Your regular payments into a pension or ISA will offer you early compound growth through consistency, not speculation.