Any advice would be great
19yo got £10k saved I'm in uni but only part time, about to apply for a job. Was gonna get a car but wasn't sure if it was the best idea or if I should invest it first or save.
byu/Important-Pack-436 inpersonalfinance
Posted by Important-Pack-436
2 Comments
Depends if you think you need a car. Being in uni I’m assuming you live in a city meaning good transportation links. You probably won’t need a car in that case.
I would only get a car if it would open more doors to me. For example I live in Warrington and work in Bury. It would take about 2.5 hours (rather than 45mins) to get to work via transport because the links aren’t there so this is an opportunity which wouldn’t have been feasible if I didn’t have a car.
If you were to get a car, make sure you don’t overspend. I spent £3k on my first car in 2017 and it’s still absolutely fine today and I’ve had very few issues with it. Don’t get suckered into paying a monthly fee for a car like other people do when you have the capital to buy it outright.
If you come to the decision that you NEED the car, I’d spend about £3k on the car. Get insured. Keep £2-3k as a rainy day fund and invest the rest. Then continue investing on top of that.
Hey mate, congrats on saving £10k at 19 while in uni — that’s seriously impressive.
Since you’re still a student with only part-time income, here’s my straightforward take:
– Don’t buy the car right now. Cars are expensive to run (insurance, fuel, maintenance, depreciation) and at your age it can eat up a big chunk of your money fast.
– Better options for your £10k:
1. Keep most of it in a high-interest savings account (easy access, zero risk).
2. Put a portion (maybe £3k-£5k) into a low-cost global index fund or S&P 500 tracker via a Stocks & Shares ISA. It’s simple, grows over time, and you can add to it monthly once you get a proper job.
Start small with investing so you learn without big risk. Focus on building your income first (full-time job or better part-time) before thinking about big purchases like a car.
Emergency fund is key at your stage — life in uni can throw surprises.
What’s the rough interest rate on your current savings? And are you in the UK? That can change the best options slightly.
You’re already ahead of most people your age. Keep it up!