Lewys Aron, also known as The Frugal Student, is a 23-year-old dividend growth and value investor from Wales, UK. Currently, he’s studying Welsh at Swansea University and has a passion for finance and investing. Instead of accumulating debt like many students and millennials, he will graduate with over £15,000 invested in dividend-paying stocks.
While it’s common for students and young professionals to follow expensive trends, Lewys shows that you can invest wisely in the UK even with just £25 a month.
You might be forgiven for thinking all millennials look the same—they often chase the latest trends, fashion ‘rules,’ and gadgets. If everyone at university uses £1,000 MacBooks, the pressure to get one is intense. Expensive cars, designer watches, and branded clothes seem like the norm. Five years ago, I was caught up in this cycle, working a 9-5 job in a hospital, spending my paycheck on things I thought I needed to fit in.
I used to long for an expensive car, a designer shirt, and a luxury watch, thinking it would make me look cool. I’d drink Costa Coffee and dine out frequently until it all caught up with me. That’s when I had my first realization: being a ‘typical millennial’ led to financial trouble and didn’t even bring happiness. My income was eroded by salary sacrifice schemes and financed items, leaving me less disposable income each month. I wasn’t even enjoying these luxuries anymore; they had become routine.
So, how did I become a university student with £13,000 invested in the stock market, despite the high costs of education? I simply gave up trying to keep up. I realized that the latest gadgets and trendy dining didn’t make me happy. Giving up these habits made me happier, improved my finances, and gave me a sense of freedom. I saw it as moving past a phase of youth and influence.
Three and a half years ago, I started university and saw many students still caught up in this mindset, wearing designer clothes and lusting after expensive cars financed at 0% interest. They seemed to believe looking good was the same as feeling good, forgetting that these debts would one day need to be paid back.
In just five years, I went from having overdraft fees to having £13,000 invested in the stock market. People often think I must have received handouts to achieve this, but I earned every penny by working 30 hours a week while studying. Instead of spending money on luxuries, I planned my journey to financial independence.
Here was another realization: working hard isn’t the only important factor; spending smartly is crucial. While there are many valuable money-saving tips out there, I want to share my plan for reaching financial independence to inspire other millennials to stop trying to keep up and start planning their financial and mental independence.
1. Invest Spare Capital into Dividend Growth Stocks: I invest my spare capital in high-quality dividend growth stocks, which pay income as a reward for ownership. These yields often surpass those of UK bank accounts and can grow over time. This was a bit complex to start, so I created my blog to help students and those with low incomes invest in the stock market. There are many other helpful blogs out there too, and I have compiled a list of my Top 100 Blogs for Dividend Growth Investors.
2. Diversify Income: I aim to diversify my income through various channels like dividend payments and part-time work, including translation and freelance writing. It’s good to have multiple income streams, and platforms like Fiverr can be useful.
3. Become a Minimalist: This approach isn’t just about spending less but also about simplifying life so that I can focus more on income-generating activities. Minimalism gives me the time to invest in education, pursue freelance work, and better manage my resources.
4. Help Others: I write my blog not for extra income but to encourage millennials to give up on trying to keep up. Helping others understand dividend growth investing or minimalism helps build a community of great minds. These shared ideas can further enrich my plan for financial independence.
I hope you found this post insightful and inspiring. I look forward to your comments on my other articles!
