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

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

      What you website/intermediary you use to trade?

  • shangoz on 10/05/2017 - 20:47

    Buy a House or Townhouse and make sure monthly payment not more then 6k, after a few years, buy second one then third one, slowly you can achieve your goal.

    • CI on 11/05/2017 - 05:49

      I was thinking of buying 3 together while the wave is still high. Need to do my numbers I guess.

  • StopThatBus on 10/05/2017 - 22:50
    +2

    Seeing your on ozbargain.
    Maybe spend your life saving on Aldi 3 ply toilet paper.

  • cheapass88 on 11/05/2017 - 09:35

    Invest in Bitcoin

    Buy one property at a time and think about the investment ones later.

    • joeno on 12/05/2017 - 10:15

      Why is bitcoin surging? It's just a currency…

    • cheapass88 on 08/08/2017 - 10:34

      If you had done this, you'd have almost doubled the amount u put in since that time!!

  • Oofy Doofy on 11/05/2017 - 10:01
    +1

    Nothing wrong with asking questions, even stupid ones.

    Be careful about getting married… but in your case I think it's a safe bet (all else being equal with gf)

    Buy a house (or don't, I wouldn't, with a household income like that)

    Diversified index funds to retire. Load it up until there's 1-2 million (per person) in there, lifestyle quality goes up from basic at 1 million to very comfortable at 2. (living off the dividend income. Heck, it'll grow year on year despite the payments it'll give you, just reinvest money back into it that you don't use, say quarterly).

    Now stop worrying, you're literally on easy street as posters have said before.

  • frewer on 11/05/2017 - 11:38

    Hmm surprisingly, no one mention this yet. Have you considering invest in some gold/silver/platinum bars or bullion ?
    https://www.abcbullion.com.au/products-pricing/gold#.WRPAFdz…

    Its price hasn't been drop down since the GFC and still climbing. They are also legal currency too.

  • venusia94 on 11/05/2017 - 14:12

    Wait, what? $5500 in monthly rent!?

    You do realize that you're paying $66,000 a year in rent… How can you possibly call yourself frugal!?

  • OzTightArse on 11/05/2017 - 15:30

    To be financially independent you'd need about 25x your yearly expenses (assuming 4% return).

    Buying a nice car and a house would definitely put a brake on that.

    If I were you I'd do the same thing until 45 or whatever. Perhaps a small house/unit if the market crash just to get rid of landlord and peace of mind.

  • serpserpserp on 11/05/2017 - 20:32
    +1

    Here is what you do with your money. Have kids. It'll dwindle away after that! (But seriously they are the greatest thing in life).

  • icejester on 12/05/2017 - 01:01
    +2

    Without a doubt you should look into buying a property within this year.

    You and your fiancee will need a house one day to live in.

    It is also the only capital gains tax free asset.

    You'll have the capacity to weather any temporay downturn in property and in 10 years time it will be double the price now.

  • hhbb555 on 15/08/2017 - 12:34

    you'll need to think how much you and your partner want to have per year when you retire.
    multiply that with the number of years that you'll likely still live after you're retired.

    If I were you, I'd try to look into buying a house while you can.
    For $5500 a month you could afford the monthly repayments for $1.2+m house, at least in Sydney you could get a decent house, or maybe a flashy one depending on the area.
    After that maybe think about reducing your tax via investments, like property investments.
    This is where you'd want to have inputs from good financial planner to minimise the tax impact

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