What should I do with my money?

CI on 06/05/2017 - 20:12
Last edited 08/05/2017 - 16:47 by 1 other user

Hi Guys,
Have contemplated posting this many times - but have seen few posts recently of people seeking the Internets opinion on their financial lifestyle
I am trying to seek your opinion on how I should go about with my moneys

Age - 25 (Partner 26)
Occupation - Engineer (same)
Salary - $100k After all taxes ($105k before taxes)
Savings - $105k YTD ($150k)
Emergency - $27k ($2k)
Shares - $20k ($0k)
Everyday Floating - $5k ($5k)

I don't have a house, I have a simple car worth $10k maybe takes me from A to B
I am frugal as f**k and try to save every dollar I can

Heres my last two months spent - https://files.ozbargain.com.au/upload/68522/48709/personal_b…

What I want to do is retire early - maybe by 45-50
how can I do this ? buy an investment property ? buy 2 ? so lost
I also want a nice car and mrs wants a house. Can I achieve all 3 things? (House, Nice Car, 2 x investment properties?)
Does any of this mean anything ? Because at the end we are all gonna be ded anyway. Man I am so confused.

All comments and opinions welcome

Mod: Removed clickbait title
Original title - Lost In The Woods

Update 1: Some people getting confused with current savings and taxes. The Bracket figures are my Partners numbers. So total savings is at $285k (this inlcludes the emergency fund but not the floating cash ($10k) or the shares ($20k)). And combined income before taxes is $235k.

Financial

Comments

  • supnigs super skids on 06/05/2017 - 20:46
    +8

    No way 5k in taxes only

    • chumlee on 06/05/2017 - 20:50
      +28

      I assume bracket figures are partners details so partner earns $105k before taxes

  • npc on 06/05/2017 - 20:46
    +12

    Do I read it correctly - 5500 in monthly rent?

    • spackbace on 06/05/2017 - 21:45
      +15

      Lol that raises more questions about Mr & Mrs 'Frugal'!

      • CI on 06/05/2017 - 22:34

        Hi - the rent situation at this stage is out of my hands due to other personal factors and work. Also my rent includes all bills (rates, internet, unlimited electricity, unlimited water, spa membership, outdoor olympic sized pool, and 24/7 gym, once a week cleaning, fully furnished and all white goods included, cable tv)

        • spackbace on 06/05/2017 - 22:37
          +17

          Why are you paying that much, with those incomes, and still not bought a house?

        • CI on 06/05/2017 - 22:39

          @Spackbace: I don't know.. that's why I posted here. I don't know how to buy a house ? How will my lifestyle change ?

        • spackbace on 06/05/2017 - 22:41
          +29

          @CI:

          At least your cash will go towards an asset, not someone else's mortgage

          Seriously you shouldn't have money issues on $200k combined!

        • TenaciousTom on 08/05/2017 - 10:21
          +17

          @Spackbace: "Hey guys, not sure what to do with my money"

          "WOW DUDE WHY DON'T YOU KNOW WHAT TO DO WITH YOUR MONEY"

        • OzzyOzbourne on 09/05/2017 - 12:28
          +1

          @CI:
          You can google how to buy a house.

          I'm not sure how it will change your lifestyle.

        • JTTheMan on 10/05/2017 - 15:35

          "CI on 06/05/2017 - 22:34
          new
          Hi - the rent situation at this stage is out of my hands due to other personal factors and work. Also my rent includes all bills (rates, internet, unlimited electricity, unlimited water, spa membership, outdoor olympic sized pool, and 24/7 gym, once a week cleaning, fully furnished and all white goods included, cable tv)"

          I think that above statement clearly summarises the source of your problem. You and your partner are earning more than enough but are choosing to throw good money away for absolutely no reason. Sorry to be so frank but someone has to tell you.

          How many years have you been doing this while property prices have been exploding?

        • CI on 10/05/2017 - 15:38

          @JTTheMan: see comment below - its only temporary from April this year till Jan. Before this I was paying $0 staying at parents.

        • JTTheMan on 10/05/2017 - 15:55
          +1

          @CI: The best thing to do is invest your money into something like maybe a property you can see your family living in ten years time? Until then you should look at minimising the wasted spending while maintaining some sort of human-like disposable income. It's a tight balance between utilitarian spending, luxury spending and investment spending but the first step is to identify what is what before deciding what goes where.

          A good financial planner potentially could help but I wouldn't know where to find one as they all have their own interests way ahead of yours. Either way you can't go wrong with property, yes it will probably slow down over the next few years, after this ridiculous boom, but it always eventually goes up and in 10 years you'll be glad to have something in your name.

          As for retiring by 45-50? A house and kids will put a spanner in those works! But that might answer your biggest question. What is the point of this existence if we all end up in the same place?

      • Tyrx on 06/05/2017 - 22:39
        +11

        He's sharing too! Apparently the monthly cost of the place is 16k per month… The walls must be made out of gold or something.

        • CI on 06/05/2017 - 22:41

          It's a lot I know but for the service I get its almost worth my share of the rent - but as I mentioned above its out of my hands at the moment. It's temporary I only started April as you can see from my spreadsheet and this will go on till Jan.

        • watwatwat on 07/05/2017 - 17:04
          +14

          @CI:

          You gonna provide more information about why you are forced to live there?

        • FW190 on 09/05/2017 - 21:00
          +2

          @CI:

          lol are you guys renting some harbor side mansion throwing parties 24/7? :)

        • CI on 09/05/2017 - 21:16
          +1

          @FW190: haha close.. but not close

        • watwatwat on 11/05/2017 - 20:14
          +2

          @CI:

          Ok. Ignore questions from people trying to help you. Enjoy your rent payments.

  • chumlee on 06/05/2017 - 20:48
    +15

    Maybe best to find a good independent financial planner or an accountant who can help you.

    We here on ozbargain are like family but reality is we don't have your interest at heart

    • CI on 06/05/2017 - 20:53

      I have tried looking for a financial planner - and I got a free consultation session out of one of them - I left with more questions. Maybe because it was free?

      • retiredfeline on 06/05/2017 - 20:55
        +15

        With your salary you can afford to pay a FA to do a proper job.

        • CI on 06/05/2017 - 22:41

          Would you be able to suggest how I can find a decent fa?

        • retiredfeline on 06/05/2017 - 22:50

          @CI: Do you have a super fund or a tax accountant? They can recommend one. What they will do is work with you to find out where you want to be in X years time and then look at your finances and see what budget and financial decisions you need to take to get there, or iterate, varying the parameters, until a solution is found. At the least you should know what possibilities are out there.

        • CI on 06/05/2017 - 22:53

          @greenpossum: Thanks. No I don't at this stage. I just do my own taxes on mytax, never been to or had an accountant. Work pays me $1k one off bonus to use an accountant so I think the time has come to use this disbursement!

        • d86 on 10/05/2017 - 20:14

          @CI:

          You have a good job mate. I pay 150-200 out of pocket just to get my tax sorted.

        • CI on 10/05/2017 - 20:19

          @d86: I think every job has its perks and downs. But I do enjoy where I work.

      • NickosFoivos on 09/05/2017 - 08:09

        You stingy mamma, go pay a good accountant and put your shit together 😂

      • Gareth on 10/05/2017 - 12:41

        If it's free, someone else is paying.

        And they are probably looking after them, not you.

    • [Deactivated] on 17/05/2017 - 22:17

      Don't listen to the brains trust telling you to go to a financial planner. Anyone taking financial advice from someone with a tafe qualification needs their head read. Go to a good accountant.

  • Pippenn2K on 06/05/2017 - 20:56
    +5

    You are both on very good money. Easy street. Are you stressed out cause your girlfriend wants a house and that will kill your savings?

    • CI on 06/05/2017 - 22:36
      +1

      Im stressed out about exactly that and the fact what am I saving for ? We plan to get married in Jan

      • dcep on 07/05/2017 - 00:57
        +25

        More like, asking yourself what are you living for ? What are you trying to achieve in this life before you're dead ?

        Don't worry about "what are you saving for", if you're going to have kids then that'd be all.

        As for your question on "Does any of this mean anything ? Because at the end we are all gonna be dead anyway." ,
        It's not about owning something but rather the experience/memories/affection that comes with it.

      • CUD on 09/05/2017 - 10:30

        What do you do in your spare time? Do you not have hobbies? Holidays you'd like to take? You said you'd like a nice car which should easily be affordable with your income, since you're getting married next year you should obviously use some of your savings for that and the next thing which I would have thought would also be obvious is to buy a house. I don't expect you would want to live in shared overpriced rental accommodation when you get married and possibly have kids in the future.

        Does work take up a lot of your time that you find it hard to find free time? It comes across to me that you haven't stopped to think about what you want to do with your life properly. Sure you've got a career and partner sorted out but did you not consider what else to do with your life? Sorry if I'm being a bit blunt here it's just that I'm honestly envious of how much you're earning, there's so much that I would buy with that much money that it's baffling to me that you seem to have very little idea what to spend it on.

        Does any of this mean anything ? Because at the end we are all gonna be ded anyway. Man I am so confused.

        It means as much as you want it to mean. It's up to you to decide what you want to do with your life. Maybe you've got it all sorted out, I don't get the impression you have though so perhaps it's something you should stop and put some more thought into.

  • Sage on 06/05/2017 - 21:03
    +9

    blow it on bargains

    • Pharos5 on 06/05/2017 - 21:41
      +5

      Invest wisely in Eneloops*

    • LittleKatie on 08/05/2017 - 13:13
      +2

      Blow it on your GF

      • jsediv on 11/05/2017 - 16:39

        GF Blow… nvm.

        • LittleKatie on 11/05/2017 - 20:51
          +1

          on a pearl necklace

  • ultracheapweeabookun on 06/05/2017 - 21:12
    +1

    It's money, spend it or save it (to spend in the future). That's all there is too it. It's just money, a piece of thin plastic. What else are you going to do with money? Wipe your butt? Blow your nose? idk. Your own it, you do whatever with it. It's just money, nothing more, nothing less

  • [Deactivated] on 06/05/2017 - 21:15
    +4

    buy an old red brick 2 bedroom unit in an excellent location, live in it then u have an investment unit later. start from the bottom and ur young anyway ur minds and life will change in 5 yrs anyway.

  • tassieeagle on 06/05/2017 - 21:47
    +8

    Only read the title - give it to me?

  • jackofspade on 06/05/2017 - 22:01
    +4

    Frugality is a symptom of obsessive compulsive personality disorder (OCPD) when a person "adopts a miserly spending style toward both self and others," notes the American Psychiatric Association. "Money is viewed as something to be hoarded for future catastrophes."

    • CI on 06/05/2017 - 22:38
      +2

      Yea I do and have done shit like that

    • Peck on 07/05/2017 - 17:57
      +1

      It is a symptom of as OZBsession

    • CI on 06/05/2017 - 22:50
      +1

      Unless you are mining of software. Will take 7-10 yrs to crack $100k if you stay in Aus. I travel a lot for work and hence I was able to crack the $130k mark just at my 5 yrs (I am not mining or soft or civil).

      • Odin on 07/05/2017 - 00:00
        +5

        what are you in?

        • CI on 09/05/2017 - 01:30
          +1

          Hi Odin and others (how do I link in other users? @phil1311 @Scrooge McDuck @GreyRabbit) - I haven't revealed what I studied or field I work in due to privacy concerns. But to broadly answer your question - I hold a double degree first class honours and one of them is Mechanical Engineering.

      • Caped Baldy on 08/05/2017 - 12:57
        +3

        would like to know too. What engineering are you doing and what is your role?

        • CI on 09/05/2017 - 01:33
          +4

          Please see comment above - as for my role - I'll be honest - I would have never imagined to climb so fast. But I can tell you - I have done my 80 hour weeks on a $54k Salary crunching those numbers on my beloved Casio fx-9860G (I am not a Texas Instrument person - youll know what I mean if you did engineering !)

        • Caped Baldy on 09/05/2017 - 06:42

          @CI:

          thanks for answering. As someone in the STEM field, older and not earning anything near that, you piqued my curiosity.

      • High_Point on 08/05/2017 - 20:02

        Also, you're 5 years in at age 25? Been working as an engineer since 20?

        • CI on 08/05/2017 - 20:50

          Yea finished year 12 at 16 graduated uni at 20. Skipped year 7.

        • Scrooge McDuck on 08/05/2017 - 22:51

          @CI:

          Did you consider academia or entrepreneurship being so bright and all?

        • CI on 09/05/2017 - 00:08

          @Scrooge McDuck: bro I am furthest thing from being bright. I don't even know how I finished my degree haha

        • frewer on 09/05/2017 - 00:09
          +2

          @CI: How did you "skipped" a year in AU education system ?

        • Scrooge McDuck on 09/05/2017 - 00:48

          @CI:

          Which stream of Engineering?

        • GreyRabbit on 09/05/2017 - 00:54
          +1

          @frewer: Indeed, I have the same question. How does one skip a year and still be considered 'furthest thing from being bright'.

        • CI on 09/05/2017 - 01:26

          @frewer: I went to a private school until year 10. And its pretty common.

        • CI on 09/05/2017 - 01:31
          +1

          @GreyRabbit: I personally don't think I am that smart. Hence, I came here with my stupid questions. :)

        • CI on 09/05/2017 - 01:41
          +3

          @Scrooge McDuck: Mechanical (I know thats very broad but sorry!) I am purely technical (not management stuff) - work has pushed me really hard to move into this stream but I am resisting as long as I can - but wont be for long - in my field the higher your charge out rate becomes the more Business Development activities you have to do. But I love engineering and love the fact the I am still using stuff from uni like Bernoullis Equation one day and Stress and TTT curves the next day ! Just today I had to do bit of integration (how exciting)

        • Scrooge McDuck on 09/05/2017 - 10:37

          @CI:

          So do you work in energy or environmental engineering?

        • CUD on 09/05/2017 - 10:54
          +3

          @CI: Maybe you're just being humble but you don't skip a grade and just manage to get a degree and career in engineering earning $100k. That's not just luck.

        • frewer on 09/05/2017 - 11:23

          @CI: Thank you for that

        • striker5950 on 09/05/2017 - 19:58

          @CI: well shit, now that explains most of my questions, my friend does joinery and has 250k savings, he wants to buy a house but he is scared the so called bubble might burst at any moment, i just graduated 6 months ago and took a few months off, just turned 25 and still looking for a job in the IT field, man the pay sucks out here for starters, 40k..

        • High_Point on 11/05/2017 - 10:40

          @CI: Hmmmm, makes me think of some form of manufacturing/ manufacturing development.

          using Bernoulli, Stress and TTT curves would make me think of metal flows, possibly metal casting of some sort.

          am i close?

        • Rusty4 on 31/05/2017 - 16:58

          @striker5950: Such a late reply I know, but thought I could help you a bit here.

          Keep trying for that 40k job, because in IT salaries rise very quickly (or at least it has in my circles). I've hired a bunch of juniors just out of study, at a couple of different companies, and they are usually nearly doubling their starter salary within 3 years.

          I'm 27, and have worked my way up from a 45k junior position to an Asia-Pacific head position, it takes time, but it's worth it. Of course it helps to have a good team around you.

          The problem these days is, unless you're going for a job at a bank or cisco, degrees don't mean much at all. From my colleagues (past and present) about 85% of them either didn't go to uni or dropped out/deferred (we're talking Regional Managers/Techs and CIOs of global companies). That goes for me too. Generally experience (even self taught) and personality ("culture fit" to put the current HR spin on it) are weighed much more heavily than a degree. It makes it harder to break into the industry.

  • trustnoone on 07/05/2017 - 01:41
    +3

    Personally I'd probably look into buying a house if I could, one that you can retire in, if you're paying that much money for rent might as well be putting it towards a house.

    Then saving is always great, if you have a plan to have kids, that will take another wack out of your savings quite a bit, but having a house already might be helpful here.

    If you won't have kids for a while you can try the whole buy a house, then sell it in your 30s and buy a bigger house with the money.

    My goal (dream) has always been to have about 1.5 mil in savings :p (I wish) so you can essentially live off the interest.

    But honestly the money you make is there for you to love an enjoy life. Work is fine but don't forget a reason to get money is to make your life the way you want it, an experience it the way you want to experience it.

  • p1 ama on 07/05/2017 - 01:48
    +2

    I don't get why people want to retire at the age of 45. What are you going to do for the next 35+ odd years? Like believe me, I don't like working anymore than the next guy, but I'd be bored out of my brain if I didn't go to work every day.

    • CI on 07/05/2017 - 02:41
      +5

      Retire to take up another full time job/hobby? I'm not sure - my uncle was a surgeon for 35 years before he retired. Nows he's practically a carpenter, he made the furniture for his whole house.

      • p1 ama on 07/05/2017 - 11:15
        +6

        I'm really interested in this topic. You say that you want to retire by the age of 45, but why? Is there something you would prefer other than going to work?

        I hear this brought up often, but I've never really gotten it - for me, work is more than just about work, it's where I socialise, it's where most of my friends are, I enjoy the environment, I have fun…etc. I feel like retiring means that I lose all of that. The thing is, it's fine when you retire at 70 because all of your friends have retired too, but at age 45, all your friends are working, who would you even spend time with and hang out with?

        • sleet on 08/05/2017 - 13:12

          Agree with psterio - I've been in contact with a lot of different people and those that have retired are bored out of their minds. Some go back into work for the social aspect.

          Travelling and hobbies can keep you occupied up until a certain point.

        • Soluble on 08/05/2017 - 15:49
          +2

          Problem is who knows if you will make it to 70 to retire? Then what have you worked hard all your life for? Probably different if you truly enjoy what you do..

          If I could retire or at least semi retire by 50 I will be extremely happy!

        • jaseredpanda on 08/05/2017 - 16:37
          +7

          I'm also looking at retirement around that age as well. Currently i'm my early 30's. It's not a matter of being bored, to me its a matter of having the choice to do whatever I want. Not financially chained or dependent on having a job is the key. My uncle is retired and all he does is travel and work part time at his friends restaurant as a volunteer. My other mate retired at 26 and all he does now is invest into businesses. If you're dependent on a job, the difference is you don't get to wake up one day and say "hey, I feel like learning to be a photographer"

    • Odin on 10/05/2017 - 19:14
      +2

      Dude there is so much to do other than work. So many hobbies, sports, fun things to do and see. I would retire tomorrow if I could and i still wouldn't have enough time in my life to do everything I want to do

      • p1 ama on 10/05/2017 - 23:23

        I never said any of that - sure it's fun to have some weekend hobbies and go on a holiday every year, but would they still be fun and great if you did that day in day out? I don't doubt that there are plenty of fun things to do, but a lot of those things are fun by virtue of them being something we don't get to do very often.

        • Odin on 11/05/2017 - 11:42
          -1

          They'd still be fun. For sure. I don't need to have relief fun after working hard. I just would find a tonne of things fun or valuable to myself.

    • jno on 11/05/2017 - 15:49

      I would go to school to learn things i actually enjoy and want to know more about rather than going school to get a job

  • [Deactivated] on 07/05/2017 - 03:56
    +18

    What should I do with my money?

    simple, give me your money.

  • chumlee on 07/05/2017 - 08:17
    +3

    Check out barefoot investor. Great starting place to get things moving

  • Waldo000000 on 07/05/2017 - 13:30
    +2

    Does any of this mean anything ? Because at the end we are all gonna be ded anyway. Man I am so confused.

    Please, focus on this before you consider buying a house and, heck, before you get married. Sounds like you're searching for meaning. Given you are someone who has so much money that you literally don't know what to do with it, I would humbly suggest you check out these and see if it resonates with you:

    On your specific question of what to do with your hoards of cash:

    1. Buy investment properties only if you want to take the risk that property prices aren't about to crash (if you're not a gambler, go to 2)
    2. Buy rather than rent (i.e. to live in) if you want to settle down, or like DIY, or hate real estate agents, or for family reasons, or are having kids, etc (but sounds to me like you're far from that point given your confusion about life meaning, in which case I'd suggest keep renting so you have flexibility to sort yourself out)
    3. In all other cases, put your spare money (minus at least 6-12 months spending money as savings) in an index fund like VAS on the ASX
  • Peck on 07/05/2017 - 17:58
    +5

    Salary sacrifice into Super. Timing is 100% wrong for real Estate.

    • CI on 07/05/2017 - 18:38

      re:timing - what makes you say that

      • Peck on 07/05/2017 - 22:41
        +2

        If I was an expert then I would be rich, however I believe that the real Estate market was quite flat for a long time, but now everyone is into it and there have been exceptional rises. I would be prepared to gamble that it cannot continue.

        • virhlpool on 03/06/2017 - 17:34

          You seem to be from NSW or Victoria, mate. You can't be from other places. SA person would say the exact opposite of what you said.

      • TenaciousTom on 08/05/2017 - 10:54
        +1

        He's making an educated guess, he could absolutely be wrong and you shouldn't take his advice. Do your own research for this one.

      • jellykingdom on 08/05/2017 - 20:48

        Not that this is necessarily the be all and end all, but most investors are calling the top of the property market. Makes a bit of sense since even politicians are genuinely talking about taking action

  • gimli on 08/05/2017 - 07:00

    Why do you want to retire in 20yrs.
    PS with 💯 k savings good income if you want to buy a place talk to bank to see what loan you can get then 🌟 t looking.

    Good luck

    • CI on 08/05/2017 - 07:02

      Isn't it better to save bit more and try to pay 80% cash

      • kev98 on 08/05/2017 - 07:52
        +11

        Why not just save a bit more and pay 100% cash

      • brianki on 08/05/2017 - 19:37
        -2

        Trying to pay with cash is an ineffective use of your time/savings/frugality, you should spend other peoples money where ever you can. By other peoples money I mean the banks in this instance. If you have a reasonable certainty that you can continue to earn then you should not be using cash for large capital expenses. If the bubble were to burst you would be in the hole nearly completely.

        Not that I am advocating to screw over the banks and the general public but property markets as a whole tend to punish young savers in the medium to long term in times of downturn or potential downturn. Spread your risk by spending the money of others. Repay that loan, with interest and you will still have the safety blanket of some of your own cash.

        • Fobsessive on 09/05/2017 - 12:13

          Spending the bank's money costs you interest. When/if the property bubble bursts, you'll be paying off a house while its value declines.

  • Ryanek on 08/05/2017 - 08:23
    +15

    Invest in monorails. That's where its headed.

Login or Join to leave a comment
Login Join