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

      • chartparker on 09/05/2017 - 17:23

        Were you sent here by the Devil?

      • mmd on 09/05/2017 - 21:33

        'not in your life, my ozbargain friend'

      • gimli on 09/05/2017 - 21:46

        Rare is better than medium

    • Marty131 on 10/05/2017 - 20:29
      +1

      Mono = one
      Rail = rail

    • LookAtMeow on 11/05/2017 - 21:51

      But Main Street's still all cracked and broken…

  • tomleonhart on 08/05/2017 - 09:33

    Why do people want to retire @ 40 ? I'd work until the day i die :-/

    • All Blacks NZ on 09/05/2017 - 16:05

      You must be one of the luck ones who love what they do. Most people hate going to work everyday. haha

    • gimli on 09/05/2017 - 21:46
      +2

      Because they eat too much KFC. So they want to retire before they die.

    • Turtlegirl on 11/05/2017 - 22:48

      Why do you want to work until you die? It's like me saying I want to live out my worst nightmare.

      • tomleonhart on 12/05/2017 - 08:13

        if your work is your nightmare then it's true. I love mine :P

  • Coatesy on 08/05/2017 - 09:48
    +9

    Seriously check out the site Mr Money Moustache, it's all about early retirement and lower expenses for maximum fun. They have forums with very similar questions that get asked regularly. Here's a link: http://www.mrmoneymustache.com

  • 00sas00 on 08/05/2017 - 09:58
    +4

    it's a good time to get into cryptocurrency right now… you've missed the second boat slightly… but the trend is still upwards at the moment…
    particularly Bitcoin and Ethereum.
    not sure about the long term, but there are definite short term gains to be made.

    some reading:
    http://www.coindesk.com/second-wave-bitcoin-price-growth-may…
    http://insidebitcoins.com/news/video-of-the-week-ethereum-in…

    • ilikeradiohead on 08/05/2017 - 10:55
      +2

      I have a much more reliable investment in paranormally enhanced legumes.

      • lucas001 on 10/05/2017 - 11:34

        That's what people said a few years ago when bitcoin was only a few cents…

    • SaveTheManuals on 26/05/2017 - 13:15

      What you website/intermediary do you use to trade?

    • ilikeradiohead on 30/08/2017 - 17:51
      +1

      I stand corrected. Ethereum was $80 when you posted this and now it is almost $400.

      • 00sas00 on 04/09/2017 - 15:11
        +1

        it's all about doing the right research and exiting at the right time. no different to normal share trading.
        without going into details i can confirm that i've made losses and gains across the currencies that i've invested in, however overall i'm sitting at +95%.

  • Tidy on 08/05/2017 - 11:44
    +2

    What kind of engineer are you and your partner?

    I'm studying eng too and graduating soon but lacking motivation. If I'm making as much money as you are when I'm your age I'll be a very very happy chap.

    • chartparker on 09/05/2017 - 17:24

      If I had to guess I'd say mining, considering that it's taken me til age 32 to get to a similar pay level as a mechanical engineer.

      Apparently I missed the bit where he explains how he got to where he is as a double degree grad with mech. Like me, but 7 years ahead of me :(

  • T1OOO on 08/05/2017 - 11:45
    +3

    enjoy life! kinda makes me sad people trying to save that cash rather than spending it…….

    rent is 5500 ? wtf?! thats massive for a monthly amount and its just you and the ms? so a 1 bedder will do, bloody hellll!!!!!!!!!!

  • Ausbob on 08/05/2017 - 12:35

    Anyone here invested in Student only properties? They seem to have a decent ROI… but that's what the sales sites say.
    As for how much clear profit there is, no idea.

    • T1OOO on 08/05/2017 - 13:18
      +2

      i think that its well and truly over to start investing here, its a peaked market, economists are hoping for a soft deflation landing for the next 5 - 10 years at best rather than a crash, however, it still means that there is no money to be made.

      ie for house prices to double in the next 10 years, and talk of 2 million house prices, what would have to happen?

      1. rates go down or stay the say. — not gona happen, RBA have said 4 rate rises in the next 2 years.
      2. wages will have to atleast double — we have the lowest wage growth of any one.
      3. the dollar will have to go down, i suspect, the dollar is going to go up, not down, or at most stay flat.

      so i cant see how its a good long term invetment at all, you will be losing quite a bit of cash.

      • gromit on 08/05/2017 - 14:35

        definitely true for investment in property as an appreciating asset. Though I know a few people that have moved from that to student type properties (they do it themselves rather than through anyone though). much higher risk (i.e. damage, collecting rent from lots of people etc) but the returns can be much higher with 6-8 people renting out the one house. management and risk are the biggies though.

    • jellykingdom on 08/05/2017 - 20:51

      You'd want to pick a town where the prices aren't nuts and there is a big uni

      Like Armidale or some of the Qld unis. Not worth trying to NSW CBD unis, maybe Newcastle and Wollongong but even they are overpriced now

    • [Deactivated] on 12/05/2017 - 13:57

      They seem to have a decent ROI

      If it seems too good to be true, it probably is.

      As for how much clear profit there is

      The management fee and maintenance fees can be quite high, so the net return probably isn't any better than a regular residential investment … but you get more 'property rights' with regular residential investment.

  • Caped Baldy on 08/05/2017 - 13:05
    +10

    I hear cars are a good investment especially if you want to impress your coworkers.
    From the look of things, combined with your SO annual savings of $130k is easily possible.
    Track what you're spending and review to see where you can save. Investing is a risk, so you have to determine how much to risk and where (property, shares, roulette).

  • knr21 on 08/05/2017 - 13:45

    May help if we know where you live, to see what the property market is doing at the moment

  • Briefcase Mong on 08/05/2017 - 13:59
    +16

    Should go to Westpac they have good financial advisors, I heard $80k cars are a high yield investment

  • Crayg on 08/05/2017 - 14:02
    +2

    Get a copy of the Barefoot Investor. He will go through everything getting you set up for life.

  • mooseymoose on 08/05/2017 - 15:28
    -3

    Only 5k in taxes? How? Give me your tips! My partner and I are on a similar combined income and we are paying almost 30k.

    • Damnsmart on 09/05/2017 - 18:02
      -1

      You must be kidding!!!

      How the hell you juat pay 30k tax for a combined 250k income?

      I am on 110k + 15k (bonus)= 125k. I pay 30k in tax already…. tell me how you do that

      My saving per year is 15k :-(

      Looks like i am being ripped…..

      • mooseymoose on 10/05/2017 - 09:57

        I misread OP's post. My partner and I combined are on around 120k, I thought OP was earning 105k with 100k after tax.

        • Damnsmart on 10/05/2017 - 10:04
          +1

          fair enough!!!

          looks like we both got negged for distracting the main discussion

  • [Deactivated] on 08/05/2017 - 16:26
    +3

    Lost in the woods with 100k

  • jaseredpanda on 08/05/2017 - 16:43
    +2

    Hey OP

    I've got similar goals to you and were where you are now about 5 years ago. It's a lot harder than it seems, and whilst it seems like 100k in savings and a 200k combined salary is really good. It's definitely not enough with out some smart investing and out of the box thinking to look into retirement. A financial planner will definitely give you perspective on how hard it is to retire with property. I have 5 at the moment in Sydney, i'm now venturing into businesses also. However if you do get into property, you'll need to separate the heart from the mind - so whilst your missus wants a property to live in it might not be the best investment strategy. I would start off first by getting a preapproval (doesn't cost anything) and will give you a dollar figure of what you can even afford, puts things into perspective.

    • CI on 08/05/2017 - 16:45

      Savings total is around $285k

      • jaseredpanda on 08/05/2017 - 16:51
        -1

        Not bad, but still a challenge to retire - would recommend a financial planner and doing the maths on buying a property. I've got about the same now saved too with 5 houses in Sydney and i'm still a while away from retirement.

        • striker5950 on 09/05/2017 - 20:08
          +1

          you have 5 houses fully owned or still paying mortgage on?
          if its fully owned and paid off i dont see how you cannot retire and live off the rent money

  • darkchoc on 08/05/2017 - 17:44

    $5,500 x 12 = $66,000 p.a. spent in rent, bills, cleaning, gym? All post tax income gone?

    Am I correct in assuming your partner is also paying the same? That would total $132,000 p.a.!!!! And if you have a third person splitting that cost, you're spending $200k p.a. between you.

    I'm not sure where you are based and your lifestyle choices.

    But I recommend downsizing and saving at least half or more between you all and putting it into an investment.

    The power of compound interest means that any savings now will reap huge rewards in the future. It will also give you much bigger war chest when buying a property!

    • drprox on 08/05/2017 - 18:26

      He says he's in not mining but with that rent price…

    • CI on 08/05/2017 - 19:44

      No Partner not paying also. That's total. And it's temporary till Jan.

  • darkchoc on 08/05/2017 - 18:05
    +1

    The YOLO attitude implied in the OP is something that needs to be managed. Yes, you will be dead one day. But most likely, it's a loooooong journey there.

    Life expectancy is increasing and for white collar workers currently aged under 40, there is greater probability that they will live beyond 90 than ever before!

    It's a marathon not a sprint. Set yourself up by being frugal on the largest expenses, spend time on things that bring you joy and not money on short term comforts and highs, invest early and well, avoid debt for consumables, shop around for big expenses (insurances, mortgages), help others in need to develop yourself ( you never know when you might need help yourself), eat well, sleep well, drink single malt in moderation!

    Avoid keeping up with the Jones and friends they live life too fast (mostly), step away from adversity, never put your money into something you do not understand even if it sounds too good.

    Talk to your partner about your big decisions, listen to their opinions, make the final decision!

    Wedding: make it special without getting sucked in. A destination wedding in e.g. Thailand will save you heaps and ensure only your nearest and dearest are there! Can get outfits made there by the excellent tailors there.

    Good luck

  • smit0847 on 08/05/2017 - 18:45
    +8

    Wow - I would have loved to have been in your financial position when I was your age. I was barely out of Uni, earning $50k per year, working 60 hours a week as a graduate lawyer and hating life.

    Obviously your most urgent concern is the ridiculous rent you are paying. You limit yourself to $50 a day spending money yet you are spending almost $200 A DAY on rent. It makes no sense at all. Even if you are under some strict lease I would immediately be looking at alternative living arrangements. You are pouring money down the drain wasting that much money on rent whilst being so frugal everywhere else.

    As others have suggested. I’ve be looking to buy a property in the next 12 months – you already have the deposit. It can either be a property to live in to escape that insane rent or an investment property that should just about pay for itself.

    You’ve mentioned you are being so frugal because you want to retire at the age of 45-50 and I wanted to touch on that because others haven’t. Why do you want to be miserly now so you can retire early? You really need to have a concrete answer to that before working towards it. My parents worked hard, sacrificed and retired at the age of 60 and I thought it was because they wanted to travel but they only go overseas every 18-24 months even though they could afford to do so every few months. They do own a beach house an hours drive from their home in Adelaide which they do go down to every few weeks (as well as spending 6 weeks over summer there) but for me that’s not nearly as interesting as travelling somewhere exotic. I earn a good wage, have been living in London for a year and spend most of my disposable income on travel which allows me to go ‘overseas’ i.e. to Europe about every 3 weeks. I’ve visited 23 countries since I left Australia a year ago and planning another 7 or so countries over this European summer. My parents think I’m insane for wasting so much time, money and energy travelling as much as I can while I think their insane for sitting around on their mountain of cash doing nothing (neither my sister and I as their sole heirs need any inheritance – we are both doing fine on our own). I’ve come to value experiences far more than possessions.

    The thing about the good things in life like travelling, having an amazing house and lifestyle, adventure, getting married, family, achieving life goals etc is that you usually need 3 things at the same time to do it properly – time, money and energy. Right now I have the money and the energy to do things I love but not much free time (I work full-time). My parents have the time and the money but don’t seem to have the energy to do much.

    So my question is, if you want to retire early to do whatever it is you are not doing now are you going to actually want to still do it when you’re 50? It would be such a shame for you to sacrifice your 20s and 30s to build a life for your 50s then reach your 50s and discover you don’t have the energy to live that life.

    I’m not suggesting you blow all your cash by hitting the town every night, you obviously have to find balance and plan your life but you need to work out what life you want and when you actually wanting to be living it.

  • kingzservingJesus on 08/05/2017 - 20:44
    +1

    Give your money to me, that's what you should do?

    • CI on 08/05/2017 - 20:53
      +8

      Hi friend, dear please share your bsb and bank account. For me to be able to release my funds to you, could you please make an initial test transfer of $320 to my bank account. My bsb is 056767 Acnt number 100010001. As soon as the money has come through I will start sending you the money in small packets. Please be assured this is a transparent and genuine process.

      • jerjergege on 09/05/2017 - 12:18
        +1

        You must be an African prince.

      • kingzservingJesus on 10/05/2017 - 02:23
        +1

        Can I transfer using Paypal? I will send you $0.00.00099999999 this should be way more than enough for the test transfer…you can keep the change. I will also send you another extra $0.00.0009999991 for your house…I am feeling really really generous today friend.

        • ChatCPT on 12/05/2017 - 14:29

          $0.00.00099999999

          Two decimal places. Does not compute 0_0

  • Miss B on 08/05/2017 - 21:14
    +5

    Most people on here earn $180k+ per person per annum. They can't help you with such a small budget.

  • explosion on 08/05/2017 - 22:45

    How come your Ikea lunch is so expensive ? The food there is so cheap, 100 people can eat with your expense !! Something is wrong here !

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

      I paid for family. We are big family.

  • El Cap on 08/05/2017 - 23:06

    Have you checked these out?
    https://80000hours.org
    http://www.givewell.org/

    • CI on 09/05/2017 - 01:56
      +4

      I give 2.5% of my wealth away every year

      • El Cap on 09/05/2017 - 09:44
        +1

        Well done!

  • GreyRabbit on 09/05/2017 - 01:08
    +12

    Can someone help me out here. I'm trying really hard to understand where OP is coming from - plus a few others in the last year or so. It is quite clear that the person is a) talented in some capacity, b) wise with money and savings, c) has a good career and d) pretty well set up to do almost anything with money and still be okay; and yet post on here what to do with their money.

    I mean I will probably get negged for my comment but I am genuinely quite dumbfounded. Taking this to be an example, and I mean no disrespect when I make this comment, surely between two successful (earning over 100k would in my eyes be successful for engineering) you can arrive at a logical and well-thoughtout idea on what you should and shouldn't do with your money without the help of people on some bargain website. I mean I'm all for second opinions but I can't help but feel as if its rather uncessary or better directed towards some financial planner. They at least can give some very specific guidance as to how to minimise taxes, plan in more precise numbers as to how much to budget etc..

    What is the point of threads like this?

    • CI on 09/05/2017 - 01:23
      +4

      I maybe 25 but I still feel like a 16 yr old. I may have the money but I still feel like I can't get what I want. And I am sure I am not alone.

      • TRD on 09/05/2017 - 02:10
        +3

        I'm a 20 year old student and admiring

        • ufohunter on 08/08/2017 - 13:00

          I'm a 48 year old and admiring :)

  • chadnchady on 09/05/2017 - 08:52
    +2

    With that kind of money, you really should consider buying a house. Property prices are always increasing. Given the interest rate is some what lower, in a couple of years time the interest you've paid wouldn't have been too much higher than the rent you're paying and the price of your house (assuming you bought in a decent location) most likely would have increased more than the interest you have paid on it. Some people don't buy a house as it takes a way too much from their lifestyle. But given the savings you have built and you're a good 'saver', I think house owning definitely suits you and your partner. There is a sense of achievement and stability knowing that you own your own place. Just remember to buy in a good location.

  • AusGP on 09/05/2017 - 09:56
    +3

    Hi CI,

    From what I am reading from your comments you are typical of many people in a highly technical field. You earn great money but have little idea about the financial side of things. I recommend you educate yourself about money and then think hard about what you actually want before jumping in.

    I'm in the medical field and one book changed my perspective: Rich Dad, Poor Dad. Not all the advice is good, but the main thing that stood out for me is:
    1. Money is a tool not the goal - it only helps you achieve your goals
    2. Make your money work for you if you want to become "rich" - whatever that may be for you whether it be retirement early or just being able to live knowing that if anything happens you'll still be financially secure
    3. Business and investments (and establishing "passive income" is the way to go to get yourself financially secure

    There's a lot I have learnt over the years which you could probably gain from going to a good Financial Planner - beware a lot of them are trying to sell you products though. Even the ones who have your best interests at heart - probably you could do the same thing if you read a few books on financial planning. I once went to a financial planner free session where they told me nothing new but to do a formal financial plan will take $800. Having said that it may be worthwhile if it solidifies a plan in your mind.

    PM me if you have specific questions.

    Cheers

    RW

  • jerjergege on 09/05/2017 - 12:23
    +3

    What engineering role at the age of 25..

    I'm 25 in an automation engineering role for a large company and I only get a bit over half of your salary before taxes. :'( even the sparky's I work with get paid more…

  • Bunnyburger on 09/05/2017 - 13:27
    +1

    Low fee index funds tailored for the next 30 years. Nuff said.

  • frostman on 09/05/2017 - 14:03
    +3

    I don't know if these are troll posts, posts to gain forum participation/website traffic or real questions, but i have NFI why people would come here asking a bunch of unknown people "WHAT SHALL I DO WITH MY MONEY?".

    Would you walk up to a queue at Myer and ask a bunch of people the same question? Do you think we're all financial advisers or money managers or something? No one knows a freaking clue how to manage/invest 300K or whatever value you have because if anyone did, they wouldn't be here at OzBargain looking to save $4.00 of NetFlix or $2.00 off their next Android App. They would be managing their 500K through successful investments which means scouring this site to save $10 is time wasting.

    Here's another example of a turnip below, has combined income of 360K with 400K savings and asking a bunch of people if he should buy a $1.7m house.

    https://www.ozbargain.com.au/node/249798

    What you will get is a bunch of unsound investment tips from people who know nothing about investing but are now experts because Google is available to define what are long/short investments and so forth.

    Get yourself an accountant and take it from there,

    MOD please lock this stupid post.

    • CI on 09/05/2017 - 15:58
      +1

      Thanks for your opinion. Its your opinion - I appreciate you have taken the time to acknowledge the post.

    • JTTheMan on 10/05/2017 - 16:47
      +1

      Frostman, while I understand your sense of frustration, I disagree.

      People here generally have some good life ideas, and your opinion is just one of them. I think if you look at all the comments together you do get a reasonable perspective on a big life decision and at least have a chance to think about it yourself. Maybe before seeking professional advice? It always helps to have some idea before going to a professional as then you can be confident you have thought about it for yourself. That is excellent for a 25 year old as 45 comes way too quickly!

    • Turtlegirl on 11/05/2017 - 23:12

      Also disagree with this comment. Most of us on here have a common goal of saving. Everybody is at a different stage. Some who have saved alot more may be able to give useful advice. Though I have saved $180k (which may not be much to some) I would still appreciate a $5 bargain because I started with $0.

  • elf888 on 09/05/2017 - 16:32

    Hi CI,
    I have the same confuse around 5 years ago. even now.
    i have same objective that could retire around 50, however i feel like that's hard unless you have your own business that is stable enough for you to earn the same money as your current earning.

    I have those Options:
    1. Seek business investment opportunity. Start from now, target to getting returns around 10%pa. However, you may need to use all of your after-work time to seek these opportunities

    1. mortgage as much as possible with your current earning for investment properties. (you two add up may able to borrow around $2m currently, saving and repaying them ASAP, combining with sell and repurchase technique when the price up) and have at least 5 rental properties (says all 2 bedroom apartments in western sydney) that has been fully paid around 50. however, it may only give you around $150K annual incomes which you may not able to meet your current earning and have to reduce your living quality. Also as compare to the capital you having, the return is way too low.

    2. spend them all with luxury cars, travels and enjoy life with luxury purchases, don't worry about the retire and have the government pension instead (not recommended)

  • All Blacks NZ on 09/05/2017 - 17:01

    It's very difficult to achieve but not impossible. I have similar goal but I have been working on it since I was 18. Also depends what you call retirement. You can retire after paying your home off and have $1000/month spending money which will be easy to achieve but if you want to travel and eat out a lot etc after retirement, you most likely would want to plan for atleast $6-7k per month taking inflation into account.

    If you want comfortable retirement at 45 years of age, you need to have around $3.5M in net assets if you spend say $120k each year and say you live upto 85.
    - Don't have kids
    - limit your spending and invest your savings. You can't save for retirement, you have to invest and hopefully those investments appreciate.
    - Start a business and make heaps of money. Most millionaires are not people with 9-5 jobs. They have businesses.
    - win lotto
    - inherit a lot of money (the last 2 are bit tricky but people have done it in the past)

    Best of luck.

    • TurkishDelight on 11/05/2017 - 14:16

      No luck with lotto. Planning for a business now.

  • Shyloo on 09/05/2017 - 18:31
    +2

    I think OP thought that this website also gives bargains on Real Estate

  • lnq on 09/05/2017 - 21:59
    +4

    buy BitCoin, double every year.

    • TurkishDelight on 11/05/2017 - 14:17

      One day it will be gone.

      • lnq on 11/05/2017 - 14:18

        If someone invent a working quantum computer or if internet is disappear for some reason. Haha.

        • TurkishDelight on 11/05/2017 - 14:25

          I was never into this BitCoint thing but if it is actually good in making profits then might plan to invest some.

    • joeno on 12/05/2017 - 10:12

      Any idea why Bitcoin is surging?

      • lnq on 12/05/2017 - 12:57

        because the bank printing too much (profanity) money!

        • joeno on 12/05/2017 - 15:11

          Sounds like a pump and dump scheme.

        • lnq on 12/05/2017 - 17:01

          @joeno: how on earth one person can loan 500 million dolars to invest into houses? so that our children have to pay for that? it times to dump the bank. banker dont need to print physical money anymore, they create loan increase the debt for our next generation. it times brother.

        • joeno on 12/05/2017 - 17:12

          @lnq: So what benefit does Bitcoin provide? It's just currency. There's no value. What would the fair value of 1 bitcoin be? 1 million bucks?

        • lnq on 12/05/2017 - 17:16

          @joeno: Do your own research, i am not here to convince you to buy bitcoin.

  • oaks101 on 09/05/2017 - 22:45
    +3

    How can someone be so bright and not know what to do with their money.

    • CI on 11/05/2017 - 05:46
      +1

      Maybe not so bright afterall! It's confusing that's all. Too many external factors. No idea how things will change once I get married.

    • TurkishDelight on 11/05/2017 - 14:17

      and I thought I was bright. Feeling sad.

  • Dacs on 10/05/2017 - 07:55
    +2

    With that excellent savings rate You're on a good path to early retirement:

    But there's some horrible advice in this thread. Check out these resources:
    Mr Money Mustache: www.mrmoneymustache.com
    Mr Money Mustache's talk: www.vimeo.com/183016901
    Financial Independence Australia on Reddit: www.reddit.com/user/fiaustralia
    Financial Independence (US-centric) on Reddit: www.reddit.com/r/financialindependence
    Bogleheads (US-centric): www.bogleheads.org

  • AlienC on 10/05/2017 - 08:22
    -1

    Invest in high yielding 80k premium cars then with the profits run a rice shop from your hoise.. trust me I am a finance graduate and work for Westpac and my dad has contacts from overseas (China).

    • CI on 10/05/2017 - 15:15
      +2

      Thanks. Noted and agreed.

  • chazfg on 10/05/2017 - 09:11
    +1
    1. Book a time with a FA, get a risk profile done. Don't commit on anything just yet.
    2. Understand your risk profile and find an investment vehicle that matches. I feel property investment may suit you.
    3. Get more knowledge on passive income, skill up and start to invest
    4. Buy a PPoR
    5. Breed like rabbit and lose half of that income for a few years
    6. Make sure you do no. 3
    7. Spend money through Ozbargain
  • Zonty on 10/05/2017 - 09:42
    +1

    First thing preety good income at that age. I am similar like you but income is less :((, you should always think how you can get maximum return on saving. If I am you 1st thing I buy house not unit around $900000 to$950000, because you paying 5000 worth rent where interest of your own property will be around $4000, $1000 for other house bills. Just put all saving in your home if u save that much in year will not take longer pay off. Property always will help to secure feature any financial crisis etc, and also that property can help to retire by moving outer city where rent for good house is only $1500 month where you can rent out own house for $3000 around. Also your property values goes up every year. Which will secure your deposit for agecare for both of you.
    Where some people like keep working so you always can buy investment property but check compare intest vs rental income. Also negative gearing can help tax deduction, also repairing maintanenvce of any hoouse you do under owner name can uss for tax purpose.
    And job u never know is secure but property always will be your.

  • kampua on 10/05/2017 - 17:59
    +1

    Buy house, get a better car, invest in shares, bonds, properties.

    You will need more money when you have a family.

  • gezza90 on 10/05/2017 - 18:21
    +1

    First of all, congratulations on getting to where you are now at the age of 25.
    Are you married? if not, both of you move back in with parents, buy a property and pay off the mortgage as much as possible until you both get married. You seems like you're doing everything right except for the $5500 rent. At the end of the day it comes down to balancing your quality of life. You don't need to rent a flashy place. You can find 1br units around inner Sydney for $350/week (No more than $2000/month inc. bills) and that's a saving of $3500 which you can put towards a mortgage. Yes you might value your time by being closer to work but sacrificing now could pay off later. I recently turned 27 and also an engineer and earn maybe 60% of what you're earning and I co-own (half) two properties currently worth $2.95m (that were purchased at $2.3m combined since 2014/15). I live with my parents and it takes me at least 1hr 50mins to get to work and I get work done on the train.

    So you have three options here:
    1. Both of move back in parents, buy a property with your partner and pay off mortgage as much as possible. Maybe look into getting CPEng because certain banks will give you 90% LVR no LMI on investment properties. This option can help maximise the budget on a property. And buy land not a unit!
    2. Rent a cheaper place($2k/month) and purchase a property within your budget.
    3. Stay where you are and picture the amount (physical cash money) of money you're giving away in just rent.

    • CI on 10/05/2017 - 18:53

      Thanks matey
      Not married plan to get married in Jan
      This rent situation is only from April this year to Jan
      Before that was at parents
      I started Cpeng very very recently

      • gezza90 on 10/05/2017 - 19:30

        If that's the case then perhaps look into these two options:
        1 Move out of your current place and buy a reasonably priced 2br unit <$700k. Owner occupier loan 10% deposit ($70k) and stamp duty + legal fees ($30k) so you already have that saved up. Even if Banks offer 80%, you still have the cash for that. You're both more than capable of servicing a $630k loan (less 10% deposit) while living in it.

        2 Move into a cheaper place ($2k/month) and buy the same unit in option 1 but rent it out. Disadvantage with this is that investment loans attract higher interest but benefit is you can claim negative gearing and all expenses. This would probably be a better option for both of you due to being in high tax bracket.

        Then maybe down the track say 3 years, you would have reduced the loan down to about $300-400k which means it's positively geared and would've built enough equity to purchase a more "flashy" place worth $1m+ assuming that you have extra in your pocket from your investment property and both earning more than current salary.

      • gezza90 on 10/05/2017 - 20:54

        Many people are going to say do this and do that but that is their opinion just like I gave you mine. At the end of the day It's your money and your decision and you know your situation (financial, marriage, family, work etc…) better than anyone else. It's very important your educate yourself first about money and keep researching. I'm sure you already know this but knowledge is really important. Goes with the saying, "give a man a fish you feed him for a day, teach a man to fish you feed him for life". Get as much information as you can and make the most suitable decision for you and your partner after considering your situation. All the best.

  • kampua on 10/05/2017 - 18:57
    +1

    I am an engineer too and is 40 this year, but I don't make as much as you because I work for the government. I think I am in the wrong business.

    • CI on 11/05/2017 - 05:48
      +1

      Government isn't too bad - much better job security?

  • lordezekiel on 10/05/2017 - 20:43
    +1

    Buy some bitcoins/altcoins… profit!
    If i had that much money, i would have it in either Bitcoin, Ripple or Litecoin (or all three)
    Bought $5000 Ripple 5 days ago, it is now worth nearly $10,000. Try doubling your money in under a week any other way.
    My longer term and bigger bitcoin investment has also doubled but took a few months…
    https://www.coingecko.com/en

    • CI on 10/05/2017 - 20:44
      +1

      There's no such thing as get rich quick scheme.

      • lordezekiel on 10/05/2017 - 20:50
        -3

        Ummm, ok then.
        As usual, people poo poo what they don't and aren't willing to understand.
        Your loss mate, just giving you an option.

    • 00sas00 on 17/05/2017 - 21:26

      You should look into Ethereum (ETH) too mate…
      DigiByte (DGB) has got up 300% since I got them a couple of weeks ago…

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