How I Manage My Money: 26-year-old with £120,000 in investments and pensions

In our How I Manage My Money series, we aim to find out how people in the UK are spending, saving and investing money to meet their costs and achieve their goals. This week we speak to Ismail El Yacoubi, 26, who lives in Birmingham with his wife, an assistant operations manager at a commercial property management firm. Ismail, a personal finance content creator, started investing at the age of 22 and now has a £120,000 portfolio. He has no plans to rely on the UK state pension in later life. My monthly income: I take £2,000 a month from my financial education media business. I’m a personal finance content creator. The business makes between £5,000 to £10,000 a month, though this is variable. Most of the income comes from sponsorship deals and affiliate partnerships. My monthly outgoings: Rent, £800, my wife contributes a further £500; council tax, £120; groceries, £120; electric, £100; water, £50; broadband, £12.50; critical illness insurance, £36; car breakdown cover, £3.50; subscriptions like Amazon Prime and Apple iCloud storage, £10; gym memberships for two, £26. I also add around £80 to annual sinking funds each month, mainly for emergencies. I also have around £500 a month for leisure spending. Any leftover money goes into a holiday fund pot. I try to max out my ISA allowance at the start of the tax year. I was born and raised in Morocco. My father owned a small law firm and was the main breadwinner. He died suddenly when I was 16. It was a painful time but taught me the value of money. My father died leaving no debt and all his finances were organised. Shorts At the age of 17 I moved to the UK to pursue my studies. I studied for a degree in mechanical engineering at Oxford Brookes. When I moved to the UK I was determined to build a financial life as secure as my late father’s. I did not qualify for a student loan, but was able to cover my tuition fees using the inheritance from my father. During my first year of university I lived with relatives two hours away from campus to save money on rent. I occasionally slept on library floors if I missed the last train home. I knew I had to avoid paying for taxis. Later, I moved closer to campus after getting a part-time job as a night-time security warden. I didn’t get paid, but I got a studio flat as part of the role, which I only had to contribute £50 a month to. I also worked at various points throughout my studies as a tour guide, receptionist and events assistant. By the time I finished my studies I was working as a graduate engineer on £2,200 a month after deductions and I’d managed to save £40,000. I was also adding £500 a month, inclusive of my former employer’s contribution, to a workplace pension. I quit my job as a structural engineer in November 2025 to pursue entrepreneurship full-time. I now run my own financial education media business, which I take £2,000 a month from. I post about investing and personal finances on YouTube and make most of my money from sponsorship deals and affiliate partnerships. I created a movement called Unowned by Design, a philosophy focused on creating financial independence by leaning into modern career opportunities, acquiring skills relevant to today’s economy and leveraging investing to grow wealth. To avoid battling inflation by only using cash savings, I started investing at the age of 22. I now have a £120,000 investment portfolio, spanning investments and pensions. I’d invest most of my £20,000 annual Isa allowance at the start of each tax year and use anything left over for smaller monthly investments. I invest the majority of my funds in low-cost diversified exchange-traded funds (ETFs) like the Vanguard FTSE Developed World, which forms 85 per cent of my portfolio, Vanguard FTSE Emerging Markets and the WisdomTree Megatrends ETF. I hold my investments across multiple low-cost fintech apps like Lightyear, Trading 212 and InvestEngine. I currently have £35,000 in my SIPP, £84,000 in my stocks and shares ISAs, and about £3,700 split across my general investment account and business investing account. I recently paused my pension contributions so I can max out my ISA first. I can access money from my ISA if I need to, but can’t do that with pensions. I plan to start contributing to a pension again at the start of the next tax year. I don’t intend to rely on the state pension as part of my retirement plan and think it would be risky to do so. Rules and eligibility criteria for the state pension could change at any time. I’m investing to build a pot large enough that state pension becomes optional rather than necessary. I like the flexibility of renting a property. I don’t believe we are missing out by not getting on the property ladder sooner. Having investments allows me to benefit from the growth of the stock market, which historically outperformed the growth of house prices. Money can help me become unowned in the future. This means I would be able to make financial decisions, like changing careers or taking extended time off work to be with family, without fear of external consequences. I felt safer financially when I crossed my first £100,000 in investments. I’m happy with my current lifestyle, as I now do work I find meaningful. I have flexibility and more control over my earning power. I don’t plan on retiring in my forties, but it would be nice to achieve financial freedom by then. Want to take part in How I Manage My Money? Email money@theipaper.com