20yo Overwhelmed with Budget Announcement
As in title, around 20 years old and feeling a bit unsure from last night’s budget.
Recently I’ve shifted my attention to ETFs to get the ball rolling for FIRE. Moderate degree of ethical concerns (negative screen sin stocks desired) so have started with around 1.6k in DZZF. After learning more about how it’s less diversified and doesn’t track the general market, I was ready to start implementing a new 70%:30% VESG:VETH allocation for new contributions.
But the budget last night has rattled me a little. It’s my first major tax reform as an investor so I’m sure that’s to be expected. I understand the government’s intention with helping first home buyers, but was struggling to see how CGT on equities should relate to that. I’m honestly not too sure how to continue from here, and see so many different opinions of people in panic on this subreddit. Should I continue my VESG:VETH plan, or is it sub-optimal now? Just looking for a sensible course of action that’s not hasty.
Thankfully I’ve managed to save up enough for a house deposit once I’m out of uni as a safety net, so hopefully that shouldn’t be an issue, especially if 5% scheme remains. I’ve locked this money away in a HISA and won’t be touching it until then. Not sure if I should continue to funnel savings into that, or if a deposit beyond a comfortable 5% is excessive.
Sorry for the rant, would appreciate some honest, simple advice of what you’d do as a young person.
Edit: Thanks for all the replies everyone, feeling heaps better after expressing and hearing a range of perspectives. Definitely the priority is to make the most of the existing seems like 5% deposit and FHSS to get a PPOR. Also apologies if this reads as an entitled post - truly not the intention, and I know it’s privileged to even be financially secure enough to be concerned about CGT, but have just seen a lot of discourse since last night and wanted to seek clarification. In saying that, some of the replies have been a bit demoralising, in that they assume things about my life or personality just from me simply asking a question, which was a bit disappointing. I’ve also adjusted my clarity for a few sentences to better articulate my ideas. Thanks all :)