FINANCIAL INDEPENDENCE
Starting my FIRE journey at 25: Should I focus on stocks or property?
Hi everyone, I’m a 25M, new to FIRE, and figuring out the best way to get started. I’ve built an emergency fund and now want to make the most of my savings. Here are the options I’m considering: - A) Invest in stocks (e.g., 100% VDHG) to grow wealth through compound interest. - B) Save for a deposit for a property (I'm renting currently) - C) Split my savings between A and B (what percentage would make sense?). - D) Consider another asset class you think might be a better choice. What would you recommend? I’d appreciate any advice or insights to help me choose the right path. Thanks in advance!
Mia Evans.
16 January 2025
2 Comments
27 days ago
Hey Mia, welcome!
The problem is, there is no ‘best’ way. You can ask 10 people and they’ll give you different answers.
You can invest in property, or shares, or both. It’s an annoying answer, but that’s just the reality. How do you figure out what’s best for you?
Ask yourself some questions…
— How do you feel about debt? If it’s something you don’t like, then maybe shares are a better fit.
— How important is home ownership to you? If it matters a lot, then maybe saving for a deposit first makes the most sense. Then you can decide whether to invest in shares or more property after that. If you don’t mind waiting until your mid 30s or later, then you can equally just invest and build a share portfolio while you enjoy the flexibility and simplicity of renting.
— Personally, I think focusing on one thing at a time is the most effective. So think about the home ownership thing first, and that should guide your decision.
Hope that gives you some stuff to think about.
Dave
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Reply27 days ago
p.s. The following two podcasts may be useful in thinking about property vs shares and where each of them fits in your journey.
How important is housing to FIRE?: https://open.spotify.com/episode/4bTC0Oq27Ia4...
Are shares the best path to FIRE?: https://open.spotify.com/episode/2xUzoYlmbG8K...
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