I recently had a change in financial situation as well as lifestyle and I redid my budget, I now stand to have €1000 - €1200 left over at the end of every month and I'd like some advice.
I'm a twenty year old in the Netherlands renting with about 3-4 months worth of living costs saved. My budget accounts for both set and variable expenses, for both luxury and necessities and I'm quite content with my current lifestyle. I'm not interested in a house for at least the next 2-5 years, and after that if I can afford it, though I don't mind renting longer if need be.
My current plan:
- Invest €300-500 in a high risk fund with the expectation of not touching it for at least 5-15 years, preferably longer. (10-15% of gross income)
- Put €300-500 in a savings account.
- Keep the rest as extra spending money, putting it into savings if I don't spend it.
I feel like it is a bit of waste to keep so much in savings given my already decent emergency fund and stability. Would it be better to change most/all of my savings into a CD ladder?
Is my idea of investing high risk for the long term sound? Is 10-15% of gross income a good amount or should I take advantage of my age and put in more given that I can afford it?
EDIT: As requested here are some of my goals and non-goals:
- I most likely want a house somewhere in the next 5-15 years.
- I have no plans for children, or even a partner for that matter.
- I guess the possibility of an early retirement?
- All of my hobbies are already accounted for when budgetting and I don't see myself travelling or taking up another expensive hobby within the next 2-4 years, and at that point I hope to be earning more regardless.