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I've been working for a couple of years still living in my parents home with no outgoings, meaning all my money goes straight to the bank. I've saved around £30'000+ but I'm unhappy with money sitting there as I feel there would be a better way to make use of it such as private equity or investments after some research - could it be used to kickstart some sort of business?

I guess my question is: How could this money best be invested for me to improve my revenue / increase revenue streams?

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  • Before you listen to questionable investment advise from anonymous strangers on the Internet it might be smarter to just ask your bank for a consultation.
    – Philipp
    Apr 12, 2021 at 10:27
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    @glglgl Not a duplicate; you pointed to a U.S. question but this is for the U.K.
    – Chris W. Rea
    Apr 12, 2021 at 13:03
  • This question may be more helpful for a UK audience, but not sure it qualifies as a duplicate.
    – yoozer8
    Apr 12, 2021 at 13:37
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    @Philipp: Frankly, financial advice from a bank might actually be worse than random strangers on the internet. Banks are incentivized to optimize their own fees and profit, not yours. Unless you talk to a fiduciary which most banks and investment houses are decidedly NOT.
    – Hilmar
    Apr 12, 2021 at 19:11

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I am sure there is plenty of detailed answers on this topic around here so this is the short version

  1. set some money aside for an emergency fund for unemployment, new car, etc. Depending on you life situation this is probably in the 5-15k range. This money needs to be liquid and risk-free. It's only purpose is to avoid going into debt if you need cash fast
  2. determine your risk tolerance
  3. invest accordingly

Private equity is very risky and definitely not in your budget. 30 000£ is at the lower end for an investment in a sensible startup and you would lose everything if that startup fails. Most people nowadays go for low-cost index funds instead as those offer a rather attractive rate of return for reasonable risk and without any need for constant attention or stock picking skills.

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