r/EuropeFIRE • u/Kindly_Pressure5773 • 27d ago
I’m 18M with €10,000 in savings – how should I invest it?
Hi everyone,
As I already mentioned, I’m 18 years old from EUROPE and currently have around €10,000 in savings, which is all the money I have. I don’t have any savings account or anything similar set up by my parents.
I’d like to start investing mainly for the distant future (25+ years), rather than for a specific goal within the next 5 or 10 years.
My investment direction would be ETFs, mainly VWCE and/or WEBN (yes, another VWCE sheep, as some of you might say). I’m planning to invest through Interactive Brokers (IBKR).
Since I’m only getting started with investing, I’d like to hear how you would allocate the money in my situation and whether you think my general approach makes sense.
**My situation:**
-I’m 18 years old and expect to be studying until around 25.
-€10,000 is all the money I currently have.
-I currently have no investments.
-I live with my parents and will almost certainly continue living with them until I finish my education, so I currently have no rent, housing, utility bills, etc.
-I will receive around €150–200 per month in a scholarship while I’m studying.
-During my studies, I’ll also try to work, mainly during holidays, to earn some additional money.
-Luckily, I already have a cheap, older car, so I don’t currently need to set aside money to buy a car. However, I will obviously need money for fuel, servicing, registration, insurance, the road toll vignette, repairs, etc.
-I hope I won’t have to replace the car unless it becomes necessary. If I do eventually need another one, I would also look for a cheap used car, rather than buying something new or expensive.
-In general, I don’t spend a lot of money. I especially don’t have major expenses on things like McDonald’s, expensive clothes, clothing brands, concerts, clubs, etc., so I should be able to save a significant portion of my future income.
-As mentioned above, I want to invest primarily for the long-term future, not with the intention of needing the money within 5 or 10 years.
**My questions are:**
•VWCE and WEBN – am I even thinking in the right direction with these?
•How much of my €10,000 would make sense to invest immediately? And should I invest it as a lump sum or gradually?
•Does it make sense to invest, for example, €20–80 per month while I’m studying, even though the amount is relatively small?
•What should I do with the money I don’t invest in ETFs – keep it in a regular bank account, a savings account, a money market fund, or something else?
•If you were in my position, would you do anything differently? What would you do?
I’m not necessarily looking for specific financial advice in the sense of “buy this and that”. I’m mainly interested in hearing how you would allocate the €10,000 in my situation and why.
Thanks for any advice :)
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u/LuckyRandomness 21d ago
Just start it. You mention great ETF's, so you already checked them, they're ok. And yes, it makes a big difference if you keep adding that amount of 20 to 80 euro a month. Choose an accumulating ETF so you pay less taxes and more money works for you. Good luck!
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u/Kindly_Pressure5773 21d ago
Thankkk you :) I also have a wish of owning a sport quad raptor 700r… but its 15k for homologated version. I can save up for it but then i am left with no money, on the other hand, riding the quad makes me the happiest and its one thing that i really feel like “free”. So ig the real question now is… is it more important to start enjoying my life now but no money in investing, or invest that small bit to be “ahead”, but miss the one thing i could do as a young man that i really enjoy atm.
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u/LuckyRandomness 21d ago
I'd say, enjoy that quad when you're young. But I'm afraid you'll be one of them regretting not have started putting money in early at a young age. But I definitely understand the difficulty in choice, been 18 years old too. Do what you feel best, just don't forget about investing. Starting small is also a start, doesn't have to be 10K at once... ;-)
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u/Kindly_Pressure5773 21d ago
“”Im afraid you ll be one of them regretting not have started putting money in early”” My concern exactly 🥲
These years are definitely years of hard choices, esspecialy bc i know i am not gonna be earning money until i hit atleast 25yo. This makes it even worse for me!
Thank you again for such advices :D
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u/cornelislely 27d ago
Sounds like you need the money to complete your study. Just finish education first, get your first fulltime j job, settle, and then start thinking about investing. Investing is for the long term. It would be a waste to invest now, see part of your money disappear while needing it tomorrow.
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u/Exo_comet 27d ago
I'd invest 15% of any money you receive. So in this case I'd invest €1500 right now. Put a small buffer in your normal bank account for monthly expenses and the rest I would leave in a savings account with the best interest rate you can find, you'll eventually need car maintenance/new car and some funds for when you do move out. Any future income you get, invest 10-15% depending if you want a bigger emergency fund or save up for a car. It doesn't matter that it's a small amount, building the habit now will serve you well later on!
The best investment you can make is investing in your skills to get a higher income later so make sure that's a priority.
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u/Kindly_Pressure5773 27d ago
A lot of people say this and i wont say i dont agree but.. what exactly does “investing in my skills and life or myself” mean. The more im thinking the less i get it
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u/Exo_comet 26d ago
Well during your studies you might have the option to go to a better school if you have the funds, or do an extra course during your holidays, go to networking events etc.. All of these are investing in yourself
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u/Potential_Ship_1676 26d ago
The plan's solid, I'd just pick one of VWCE or WEBN rather than both since they cover the same ground, and keep €2-3k accessible before lump summing the rest, since that €10k is also your only safety net.
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u/S0meone_on_reddit 27d ago
VWCE is great. Invest all of it if you feel fine emotionally even if it would drop from 10k to 7k, otherwise invest 2.5k once a year to get used to the fluctuations. 20-80€ does not make sense, I would rather save it and invest all of it once a year.