Not many young people can say they have tens of thousands of pounds in savings.
Research by Finder UK suggests just 3.8 per cent of 18 to 24-year-olds have more than £10,000 in savings, rising to just 8.6 per cent among 25 to 34-year-olds.
However, The i Paper has managed to track down some of these people – and asked them just how they did it.
‘I live off my student loan and save the rest’
University student Sophie Swain, 20, has just over £10,500 in savings.
She has always been frugal with her money and saved what she can – even when it comes to birthday and Christmas money.
The student, who currently lives in Preston, has been working part-time in retail alongside her studies but is living almost entirely off her student loan.
The money she gets from her part-time work has been going towards her savings, which she has put into a savings bond account for a year.
“I did the same last year and received £600 in interest – I’ve treated myself with a holiday to Amsterdam this Christmas with that money! This year the interest rate is 4.65 per cent so I’ll receive around £500, I think,” she said.
Swain says she hides her savings accounts in her banking app so she isn’t tempted to use the money, and she transfers a small amount from her student loan into a separate bank account every week to help her stick to a strict budget.
She buys most of her clothes from charity shops and sold her car before going to university, which has also helped her to boost her savings.
‘I run my own business’
Jay Perkins, 34, can name at least 28 jobs he’s done in the past – including working in the police, as a bartender, and as a sales assistant.
But he says the key to his success has been setting up his own business and investing his money smartly.
Perkins, from Stafford, who now runs a digital marketing business called Yowl, has managed to save up just shy of £20,000.
Some of this has gone back into his business and some into investments such as stocks and cryptocurrency.
“I don’t really believe in saving,” he says. “I believe in making more money and putting a percentage of that into investments to make even more money.
“Of course, you need to be realistic and put aside at least four to six months of monthly expenditure as a safety blanket if things were to go south.”
He says he grew up having to manage his money carefully and would rarely buy clothes or eat out – but now he thinks differently about money and will eat at fancy restaurants, book nice holidays, and is even learning to fly planes.
‘I work as an influencer and invest in real estate’
At 22 years old, Emma Kanngiesser has at least £300,000 in savings.
The influencer and OnlyFans model says she makes between £16,000 to £47,000 a month through her social media accounts, paywall-based websites and modelling.
She says she always tries to have at least £100,000 saved up and accessible, but she has also invested more than £200,000 in property and jewellery – which she hopes will increase the value of her money longer term.
Her parents are both in property so she has always been educated in the topic, and is now hoping to buy her own dream house.
“That is definitely my biggest saving goal. Once I reach over £1m in savings I am going to buy my dream home. I aim to do this by 2028,” she said.
Kanngiesser, who is based between London and Hamburg, says that despite her earnings, she lives a relatively frugal lifestyle.
She doesn’t own a car or have a gym membership and tries to walk as much as possible – although the one thing she will splurge on is her rent.
‘I pay myself first and avoid lifestyle creep’
Growing up, Kristian Manton had been taught to live within his means and save for a rainy day.
“Even as a kid, I was fascinated by personal finance – I’d constantly ask my parents about the interest rates on the savings they’d set up for me and even convinced them to switch my account when I found a better deal!” he said.
At 24, he’s a chartered financial adviser at Octopus Money and spends his time helping others with their finances.
He has managed to save more than £25,000 personally through methods such as paying himself first.
“As soon as you get paid, funnel a percentage into a separate account – ideally one you don’t check too often. Before you know it, those regular savings, combined with compounding interest, can really add up,” he said.
To boost savings further, he also recommends opening a Lifetime ISA (which offers you a 25 per cent government bonus on whatever you put in if you’re looking to buy a house) and making the most of bank switching offers.
Another thing that has helped him is being “mindful not to let lifestyle inflation creep in”, such as not spending more money every time he gets a pay rise.
‘I work as a digital nomad and live cheaply’
Naz Avo has been living a nomadic lifestyle as a remote-working software engineer for the last 13 years.
The 33-year-old, who is originally from Ukraine, has been working for British and American companies while travelling the world.
His first salary at the age of 18 was about $300 (£230) a month, but his last salary was a huge $10,000 (£7957) a month.
During his career he has aimed to save between 60 to 80 per cent of his income, investing the money into stocks and real estate.
Of course this has meant living frugally – but he says his living expenses are “reasonably low” as he has lived in cheaper places, such as South East Asia.
He has now managed to save so much that he was able to retire last year.
Avo says that when he retired, he had two rental properties and exchange-traded funds with a net worth of between $500,000 (£397k) and $1m (£795k).
His advice? “Learn skills for high-paying jobs or become an entrepreneur. Don’t allow lifestyle inflation to creep in on you. Life is as good without the newest car right out of dealership.”
How to succeed with savings
Financial educator Rotimi Merriman-Johnson – aka Mr MoneyJar – gives his top tips
What are your tips for someone who is hoping to save up a large pot of cash?
My number one tip is to be specific, plan, and automate. Decide on an amount you would like to save and what you are saving for. Pick a date in the future that you would like to have the money saved by, and divide it the total amount by the number of months.
It can also help to visualise what it is you are saving for – having something exciting in mind is great for motivation. Then, set up a standing order from your main bank account to set aside that money on or just after pay day into a separate savings account.
How much would you recommend for someone to save from their salary each month?
10 per cent of your salary is a good percentage to start with. The general principle here is to not spend 100 per cent of your money, as this makes you reliant on your monthly payslip.
Try to live off 90 per cent or even 80 per cent if you can manage. Then put whatever you are not spending in a separate savings account.
What would you recommend for someone who isn’t able to save much each month?
I would recommend that they search for the Government’s Help to Save scheme on Gov.uk. The UK’s Help to Save scheme is a government-backed savings program for low-income earners on universal credit or working tax credit. Savers can deposit up to £50 monthly and earn a 50 per cent bonus on savings, up to £1,200 over four years.
Separately, I would also look for ways to generate ‘free’ money – buying things using cashback, bank switching, survey apps – and then save the money generated doing these activities.
