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!