Financial Planning as a Single Woman

LLucy1 on 27/01/2019 - 00:33
Last edited 27/01/2019 - 00:34

I'm a 32 year old high school teacher living in Melbourne. Over the last few years, I've become increasingly concerned about my financial future as I have very little super (<20k) and virtually no assets to my name. I do currently have about 115k in a high interest savings account for a deposit on a house, but haven't bought anything as I fear buying in Melbourne is well beyond my meagre salary (72k). Only debt I have is HECS (40k).

The options I currently have:

  1. Try to increase my salary as much as I possibly can. I currently do tutoring which gives me a little bit extra (2-3k a year), but am also thinking of adding in some retail/hospitality work (lower pay, but more hours available).
  2. Choose a new career. Unfortunately most high income careers will require that I retrain, which I'm quite happy to do. I have just been offered a place in Deakin's bachelor of engineering. As its online, I will continue to work full-time whilst studying part-time. Given that I am getting a lot of credit, I can get it done in 4-5 years.
  3. Teach overseas somewheres that pays better than what I am currently getting. I have done a bit of research and it appears the Dubai pays rather well with the possibility of free accommodation.
  4. Move to the country. I have previously lived in the country and hated it, but it may be only hope of ever buying a house.

Any suggestions of what I should do?

Financial

Comments

  • negger on 28/01/2019 - 09:41

    Investment advices are good but it takes time and effort to succeed. Start small and spend time to become better at it. As per statistics, most people do worse than market. Timing is also fairly important especially when you are still learning it. This is probably not the best time to invest for a novice. Thought of saying this much because like most people you are fixated on property investment but reality could be far from it going forward given the current prices.

    Anyway higher income and saving more is essential for any type of investment strategy. Think out of the box since you seem to have spare time. I also feel that formal education is overrated especially after a certain age unless you can use that for sure to go higher up in the ladder.

  • Bellpop on 28/01/2019 - 10:43

    72k/year?

    Should max out at about 100k/year when u go up the incremental steps, then there’s super on top of that. Which isn’t a bad income.

    If you’re thinking about retraining, but already worked your way up the incremental pay steps, consider retraining within education. For example, doing a grad dip psyc to be eligible for school counsellor/psychologist retraining. You keep your award conditions 9-3. 12 weeks holidays. But you’re out of the classroom.

    You can then also salary sacrifice your super contributions using your pre tax income. I put mine up from 9.5% to 15% and after the pay rise to be adjusted for inflation I noticed very little different to my take home pay.

    Also, there are more than cities and small towns.

    We live near the beach in Newcastle. We wouldn’t have the great quality of life we have here if we lived in Sydney. Woolongong is similar too. I’m sure there are similar places in vic.

    Good luck!

  • Dancasper on 28/01/2019 - 11:27
    +1

    OP, I would suggest you look at UAE - Dubai. Do not be put off by some of the comments in here regarding a SWF in this country, you will find it safer there than Australian capital cities.

    My sister and her husband have been working in UAE for 9 years. Whilst she complains that the law and government interactions are authoritarian and overly bureaucratic (when you have to deal with them), there are advantages in that it is a very safe country to live in. OTH, cost of living there is high (commiserate with the income you earn..it's all relative) and I'm not so sure of how you deal with ATO.

    Regarding the engineering path, I do not think the cost is worth the reward bearing in mind that you will be entering the profession in mid/ late 30ies. It certainly opens the door to career opportunities but the money is not there in the long run and the salary does not correlate with the complexity of the job, the risk that comes with it and the pressures of Aussie building industry (if you get into civil/ structural).

  • DarthAntz on 28/01/2019 - 15:00
    +1

    I took the option of living overseas- teaching in Japan. It took away the worry of ever having to buy a house in Australia, which was out of my reach.

    I was able to focus much better in a foreign environment. I took a 40% pay cut but felt much richer due to the low rent, excellent health an dental and improved quality of life. I married here and I will stay indefinitely, but soon I will have to find a new job at the end of my current contract. Since getting married the number of women I have met who want me to help find them a partner has increased a lot, but most of the good men are hard at work.

    Your savings is an awesome goal. You can probably do more with that than you think. Read the books recommended. I invested a lot of my savings and they're stuck in investment now. Its not profitable for everyone. In the long term I can still have a different story.

    Dont worry about the house or assets, keep saving and independently finance your retirement. And get rid of your HECS.

    +1 for living and working overseas

    • Samsungnote10 on 28/01/2019 - 15:32
      +1

      . Since getting married the number of women I have met who want me to help find them a partner has increased a lot, but most of the good men are hard at work.

      Ummm thats because you are a foreigner and japanese women love anything foreign caucasian

      • DarthAntz on 28/01/2019 - 15:47

        do you live here? Did that happen to you?

        People don't marry others because they're foreigner. We married each other because we match. I've met hundreds of people since being here, and there are people that fit your expectation, both foreigners and locals, but they don't make the effort to marry each other.

        The attraction doesn't result in commitment.

        A lot of my wife's friends and people I work with hit a level of maturity where they want partnership. Partnership becomes a goal for them. The best way to meet people is through friends, where there is mutual trust. They make an effort towards their interests- people who communicate with purpose and don't assume everything.

        • Samsungnote10 on 28/01/2019 - 15:53

          No, no

          People don't marry others because 
they're foreigner

          I think you're missing the point

          • DarthAntz on 28/01/2019 - 16:56

            @Samsungnote10: By recognising your assumption I'm missing the point? Tell us what you really think.

    • netjock on 28/01/2019 - 16:20

      You get A+ for bragging but big fat F for achievement.

      40% pay cut but richer because the rent is lower, health and dental? If you were on 100k I think you can afford to pay rent and private health care. I am not going to suggest or ask how much you were earning.

      Get rid of your HECS? It is the cheapest loan anyone will ever get in their lifetime. If inflation is 3% and say ASX 200 index ETF is paying 4.55%. (https://www.spdrs.com.au/etf/fund/spdr-sp-asx-200-fund-STW.h…)

      • DarthAntz on 28/01/2019 - 16:55
        +2

        I'm encouraging working overseas. OP is asking for financial advice, because of financial worries. I was earning far less than 100k. Quality of life makes me feel richer, not worrying about the financial situation you're drawn to consider living in Australia. I was working 3 jobs back in Australia, and had a similar concern to OP. The change is important, the relief is worth it. HECS is still a debt.

        Thanks for the report card. Keep assuming.

        • netjock on 28/01/2019 - 17:30
          +2

          Advice to move overseas to make 40% less than the 3 jobs you were doing earning far less than 100k is bad financial advice.

          Debt: you don't understand the difference between good vs bad debt.

  • VictoriousBboy on 28/01/2019 - 17:48
    +5

    It sounds to me like you need to do some soul searching to figure out what really matters to you. Do you want to be very wealthy in a job that may provide less satisfaction and time off, or do you want a quality of life that comes from doing something you enjoy? I’m not getting a sense you really know what you want to do career wise, given the medicine/teaching/engineering.
    Have you looked into Masters programs you could do mostly online? It really depends what you want to do, because so many programs can lead you in many different directions, career and pay wise. And adding to that, we don’t have a job for every graduate.

    Have you done much travelling? Perhaps as a young single female, you could “invest” some of your savings in exploring the world, and doing something that isn’t as easy when you have a mortgage and 2 kids. I’m 25 and often have to pull myself up on just saving madly. There is more to life (though seeing $$$ is enjoyable too!) When I’m more financially secure at 45, it won’t be as appropriate to be doing shots of vodka in Russia with random strangers. Yes it sucks the current state of the market and that life milestones like buying a house or getting a great job are harder for our generation, but I know plenty of grads I studied with who still work retail or admin, even after doing well at uni.

    Good luck!

  • locknuts on 28/01/2019 - 18:35
    +2

    If you're a good teacher, come to QLD. That's like moving to the country. Even Brisbane is like a country town compared to Melbourne.

  • bmerigan on 28/01/2019 - 18:56

    I'd move to a large city, not a capital city, where you will be able to get a house at a reasonable price. No need to go country.
    e.g., In Victoria, there's lots of schools to work at in Geelong and house prices are way below Melbourne. Your savings are good for a 20% deposit.

  • smokemirrors on 28/01/2019 - 19:18

    As an alternate option (to engineering), a good friend of mine worked as a teacher for 5 - 10 years before transferring into a corporate learning & development role.

    He studied to support the move, but the degree was only two years (from memory). His salary - from what I gather - would be a large step up from your current salary. The transition appears to have been quite smooth.

    Best of luck!

    • Lucy1 on 28/01/2019 - 19:59

      Do you remember what he studied?

      • smokemirrors on 28/01/2019 - 21:13

        Masters of Human Resources - two year degree.

  • 91rs on 28/01/2019 - 22:10
    -2

    Find a single guy who's already got a mortgage on a place you could live in, who should inherit some good coin (property or cash, don't be too picky) from parents later in life, and get pregnant.
    Seems to be how the single girls I know have worked out how to do as little as they can and be financially stable.

  • fenixforeva on 28/01/2019 - 22:31
    +2

    @lucy1

    Fark, I love it when everyone gives interesting ideas/advice and suggestions that I get overloaded, however here is my 2cents if you don't mind me chipping in!

    Honestly, if you're strong in Maths and looking for a pay bump that wont suck the years out of your life then my suggestion would be to take up coding or software development. A friend self studied over 2 years and then did an additional 2 years on the job training along with project work. He earned roughly $2000 a week as a casual/contract work and had many days where he could work from home. Coding is in massive demand and being self taught with no degree is no barrier for entry at all.

    They are always on the look out for smart individuals and the balls in your court because everyone wants to promote EEO for women too now. Not to mention the type of work you do varies so it will always challenge you.

    Best of all ? - Learning to code is basically free and you have the power of the internet at your disposal and forums to support you every question.

    https://www.freecodecamp.org/ - FREE!

    https://www.codecademy.com/ - Literally a monthly gym membership

    imo you cannot go wrong with these as its really low investment financially.

    This is actually my plan tbh, I just haven't started lol, so much is already on my plate.

    As for your teaching overseas plan ? Getting a TESOL might help. Once again with your high math skills you can teach English and Maths in schools in Asia and do extra tutoring class to make some serious, I mean serious, $$$. If you set this up right you could make a killing and enjoy many benefits like cheaper rent or no rent.., living in another country and the best part ? - Meeting other travelers/ expats and teachers from other countries ;)

    The downside is countries like Japan and Korea visa requirements DEMAND you hold a degree to teach … still, its worth looking into.

    I forbid you to consider #4. You are not allowed to give up. As a fellow single individual who's mortgage limit is around $405k, 30k in savings, and 20k super, I feel the sting too when it comes to wanting to buy a home, question Im considering is, Do I really want to or is it because of social pressure?

    I feel like this is mostly me talking to myself, but you inspired me to write. I'm currently working through my own shit and hopefully it will help give me more clarity in my life direction.

  • BlacNBlanc on 29/01/2019 - 02:24

    Hey OP,

    Please take everything said on here as opinions and not advice. The ATO and govt aren't as scary as everyone is saying. You can contact them anonymously and ask advice for what you would like to do and they will advise you for the current financial year. In most instances if you are an overseas resident and can show that the cash you have has gone through a tax system they will not double tax you. They will ask you to declare it for money laundering laws so be prepared for that.

    It's a long shot, but there are still some agencies around that will pay you a very high rate and send you to the middle east, japan and singapore to do teaching or tutoring. You will have the option of pay structures that will let you get taxed here or there.

    You do have to be careful with local laws in certain countries but in most circumstances you will really have to go out of your way to get in trouble. Just respect the laws of where you go.

    I'm in a similar situation to you where I have very little super and more in my portfolio. You should really be patting yourself on the back for that. Super is for people who can't save and set themselves up for retirement. This doesn't sound like you.

    Personally I have put my funds into GOLD on the ASX, Vanguard ETF and have investment properties. Investment properties have put me in the shit at the moment but the GOLD and vanguard shares have done really well. Unfortunately the guy behind vanguard has passed away but his goal was to give people better access to index funds. GOLD is where I have my money if things go to shit.

    You are doing really well. If you do some research on your income and assets you will find you will find you are within the top 5-2% in the world for wealth and income.

    Keep doing what you are doing! Don't get greedy.

    I just want to say this is the prime time of your life… do what you enjoy now while working a job you enjoy. You are doing great!

  • morebunnings on 29/01/2019 - 09:24

    How would you describe 'Country' living? If you move to the sunshine coast you could easily get a house or apartment in a pretty built up area. 3 bedroom houses go for around the $400-500 mark, or apartments for less. Not sure about teaching jobs though.

    I bought my house a few years ago in Buderim with a similar deposit & salary to yours.

  • Trying2SaveABuck on 29/01/2019 - 09:29

    Got to the library and borrow the barefoot investor and follow his steps religiously and you will be ok

  • FareEvader on 29/01/2019 - 11:14
    +1

    Based off your income, savings and goals to become more financially well-off, I think this is a hard task to achieve. It's hard to become 'rich' working for someone else, so do you have an entrepreneurial bone in you? You could setup your own business, such as a tutoring centre.

    • MarsTitan on 29/01/2019 - 17:32

      "hard to become 'rich' working for someone else" well said.

  • bajillionaire on 29/01/2019 - 11:22

    You could also post this question on Reddit's "Australian Finance" and/or "Financial Independence (AUS)" subreddits:
    https://reddit.com/r/ausfinance
    https://reddit.com/r/fiaustralia

    Some good information in the sidebars of those subreddits too. Good luck!

    • codinghelloworld on 30/01/2019 - 12:07

      Thanks, did not know these before. Really useful.

  • brad1-8tsi on 29/01/2019 - 11:53
    +1

    Lots of talk about degrees and things but have you considered an adult apprenticeship in electrics (especially high voltage), plumbing (both need licences and therefore have barriers to entry keeping wages high) or cabinetmaking (skills shortage)?

    A mate left finance at 35 and did an adult apprenticeship in HV electrics. Money was tight for the first few years but after that his wages are as good as any engineers (if not better) when you include the shift work and industry allowances.

    I met a 40yo last week that was a qualified motorcycle mechanic. He maintains tunneling equipment on the Sydney Metro rail project and earns $200k+.

    Stop/Go lollypop people doing nights/weekends earn $100k+ and you have time to do other work.

    Another friend who worked low paid jobs in theatre for 20 years became a train guard at 43 and a train driver at 45 (earning $120k+ with shiftwork) and is now in the track control centre on $140k+.

    My gf's neighbour pays $60/hr cash to her handyman (affluent suburb and the tradies have to travel).

    I'd also re-invest some of your savings so they are working harder.

    You might also consider continuing to rent but buying an investment property with the associated tax deductions.

    • Homr on 29/01/2019 - 14:55
      +2

      You sure you're not reading too much whirlpool?

      • brad1-8tsi on 30/01/2019 - 14:40

        I'm not sure what you mean.

        I work in the utilities sector as a maintenance engineer and know lots of people. Most of the examples I've given above involve shiftwork.

        Shiftwork in the non-hospitality sector pays very well. I did shiftwork / 6 day weeks / massive amounts of overtime in my 20s/30s and it set me up for my 40s/50s.

        I know plenty of people with degrees that get paid rubbish money and plenty of people with trades that get paid very well and i think trades are often overlooked as a pathway to wealth if you are willing to have a crack.

      • DiscoJango on 31/01/2019 - 16:40

        The figures might sound inflated however they are true. $140k is laughed at in the commercial construction world.

    • Milk tea on 30/01/2019 - 13:48

      From a female teacher to a trade like plumbing or cabinetmaking. I don't know there. Who knows, it might pan out but yes investing is a good idea.

      • brad1-8tsi on 30/01/2019 - 14:42
        -1

        I live in the inner-city. Female tradies are very popular as they have a better eye for detail and don't try and cut corners (as much).

  • trapper on 29/01/2019 - 13:08
    +4

    Youngish, single, 72k… you will probably never have as much disposable income as you do now for the rest of your life.

    I would try to massively reduce expenses and try to make the next 5 years really count. I mean by 37 you will probably be married with kids on the way or maybe even already there.

    Forget about buying your own home and use your deposit to buy an investment property. Rent a small cheap place (near work) and then move later on if/when you get married etc

    • [Deactivated] on 29/01/2019 - 13:22

      A lot of people just aren't getting married and having kids these days. No guarantee that will change. But good point on the expenses, a dollar saved is worth more than a dollar earned.

      • Homr on 29/01/2019 - 13:42

        "A lot of people just aren't getting married and having kids these days"

        Why's that??

        • [Deactivated] on 29/01/2019 - 14:33

          https://en.wikipedia.org/wiki/Voluntary_childlessness

          Lots of reasons, some voluntary, some not.

        • brad1-8tsi on 30/01/2019 - 14:05
          +1

          Changing world.

          Up until recently I thought married with kids was the norm. Then the marriage split and I started dating and hanging out with single people and I now think that no kids is more common… The sample size of the survey is probably a bit small to be statistically reliable though.

  • fbzbenny on 29/01/2019 - 13:43
    +1

    It's all about confidence, baby.

    • fbzbenny on 29/01/2019 - 13:53
      1. Barefoot Investor Book 1.
      2. Put some of that savings into Super.
      3. Spend less than you earn.
      4. Keep some savings as Mojo.
      5. Relax! From the numbers, I'd say you're doing fine.
      • Homr on 29/01/2019 - 14:54
        +3

        I strongly disagree with no.2

        Why put money in super where she can't access it for another 3 decades??

        • brad1-8tsi on 30/01/2019 - 14:08

          Because it's not taxed as harshly.

          OTOH, despite being a firm believer in superannuation, the goalposts get changed far too often and I'm very distrustful of it being a reliable single source of savings for later years of your life.

          • bad hombre on 30/01/2019 - 21:16

            @brad1-8tsi: Totally agree. Govt want self funded retirees but then any chance they come short on policy/budget they raid peoples super.

  • nikey2k27 on 29/01/2019 - 15:40

    Relax house market going down at moment do you want to do some travel as a teacher go enjoy that. you be ok

  • apenman on 29/01/2019 - 16:03
    -5

    my 2c since I could not find it mentioned
    - If you want to just get more money, lie on your cv(that you have had one Testing role) -line up some friends as references and look for 'Testing' contract roles in IT. These should pay anywhere around 500-800 a day. Look for roles that are not automation related and do not ask for coding experience. Familiarize yourself with JIRA, and Confluence. Do some research on interview questions etc on google. Getting the first job is tricky, do not get to familiar with recruitment consultants, just apply online - customise each cv for each application. But once you have the first role, the next ones will be easy. And testers do not actually do any real work, so you have time to find out what you really want to do with a career.

    Or if you are looking for a career, I would recommend as some others have Data Science, and programming, over a straight engineering degree.

    If you are mathematically minded, and appreciate logic then programming is something you should really look at first.

    To be fair - investment advice is for schmucks - to actually make lots of money, you have to be in a position where people are giving you that money, not waiting for irrational markets, and irrational investors to randomly take a walk that gives you a ridiculous return. I am not saying you are not the next warren buffet, but chances are if you end up with as much as you started out with, you have probably done better than most in the 'markets'

  • [Deactivated] on 29/01/2019 - 16:47

    I don't have a suggestion, but for encouragement take a look at Gail Kelly, ex-Westpac CEO.

    Good luck!

  • movieman on 29/01/2019 - 17:44
    +1

    Hi OP.

    Have you travelled much overseas?

    I'd highly recommend travelling, and if you really enjoy it, perhaps you can stay in a country teaching English.

    This will give you time to reprioritise your plans, and a brand new perspective.

    I volunteered at an orphanage in South America, and it really opened my eyes as to what's really important in life.

    Enjoy each day!

  • CalmLemons on 29/01/2019 - 19:18

    There is a huge market for tutoring atm. Have you considered private one on one tutoring?

    Step 1. Make more money enjoying what you do.

    Step 2. Buy an OK house in an OK area, where your interest payments would be less than your rental payments so that in 5 years time, at least you've been paying 'rent' whilst your house has increased in value - hopefully. Use good judgment without emotions.

    Step 3. Continue finding ways of making more money.

    I haven't read the whole thread so career wise no advice. You will be hard stinted to make as much as an engineer or coder.

  • shangoz on 29/01/2019 - 21:18

    For the Income you get, and for the saving you have, don't think you have any problem purchase a two bedroom unit (not necessary brand new) as long as it's not far away from train station, you can simple lend out one bedroom and living in another by yourself, this way, you can dramatically reduce your home loan, by the time, think about become a permanent part time tutor, every week doing one or two night tutoring or just doing it every weekend. The way to purchase your first unit, can build it up your wealth brick by brick, instead of paying somebody's investment.

  • BobLim on 30/01/2019 - 00:19

    What are your current qualifications? There's a fair chance you'd be able to go directly to a 2-year (FTE) ME if you've completed a BSc.

    More related to your current role - have you considered getting into training delivery, workshop facilitation or similar? I'd imagine a teacher with degree and experience would far surpass someone with a Cert 4 in Training… Consultants in these areas can make heaps

  • Thaal Sinestro on 30/01/2019 - 00:24

    You should be grateful for your $72,000 a year salary; the median Australian income is $55,000 (and they get far fewer holidays than teachers). Unfortunately we live in a capitlist society, people are never content; they always want more. This isn't your fault; capitalism corrupts us all.

    A poor superannuation balance is nothing to worry about; when you retire you will get a government pension which is enough to live on IF you own a house. If you don't own a property, then living on a pension is really tough. Young people need to focus on acquiring property; it's the only want to obtain financial security.

    • Hughesyboy on 30/01/2019 - 13:40
      +3

      As a uni trained professional she should be comparing her salary to other uni trained professionals, not the whole population. This figure would be a lot higher.

    • brad1-8tsi on 31/01/2019 - 07:58
      +1

      Maybe we live in a society with hopes, dreams and ambitions with a desire to improve the outcomes for ourselves and our children?

      The OP is eligible for the aged pension in 35 years when she turns 67. I've been in the workforce for >40 years and the government has changed the rules regarding pensions, access to superannuation; taxes on superannuation contributions, withdrawals and earnings; assets that are exempt (or not) from means testing, etc multiple times. I wouldn't be making any plans based on current rules or government largess without a great degree of flexibility built in.

      One thing you can count on is the government will only take away benefits (eg: ALP and franking credit refunds being taken from what is mainly those that would most likely vote for the ALP).

  • cushydeskjob on 30/01/2019 - 00:30

    4

  • Curiouscat on 30/01/2019 - 00:47

    Hi,

    Good on ya for saving that amount but high interest account in bank is actually not fetching anything in real terms. I would say look at managed funds.

    Also, what is your risk appetite in terms of investing in business.
    Have got few mates who own and partly manage some retail businesses which make more than $80k bought for $150k - $180k range… I am not selling any of these businesses or have any financial interests in the same. PM me if you've got the risk appetite and flair for business… Happy to provide you some info if you want to go that way..Good luck

  • jellykingdom on 30/01/2019 - 09:28
    +8

    I've worked as a mechanical engineer and project manager for the last 10 years (I'm 33), and I've gotta say i'm a little bemused by the idea of "i'll just become an engineer" as a fallback from teaching.

    Feel free to ask your dad about these comments, some are just from my experience so he may have different opinions or experiences

    • Engineering (as a general discipline) isn't exactly easy, it's not really the ideal course for just a bit of part-time study while still working full time. This isn't an arts degree. I'm constantly being told how busy my teacher friends are, so how do you plan to fit in the assignments, projects, labs, practicals, work experience, etc? There's plenty of work, especially the larger group projects and the thesis.

    • If your interest in engineering is just because you like maths and science, you may still enjoy it, but you also will just as likely just find yourself working in an office as a Spreadsheet Engineer. My experience is that these people usually end up hating their jobs

    • Engineers with minimal practical ability or experience are not very useful. That's just the truth. I'm not saying you need to know how to build a house from scratch, but if you can't even use basic hand tools, probably now would be a good time to start. This isn't a comment about you being female, I know male engineers who work with or for me who are definitely weaker because they can't really imagine how something would need to be constructed because all their knowledge is theoretical.

    • Engineering, day to day, isn't the most easy going occupation. I am super jealous of my friends who can simply finish their day and not worry that their following day is also going to be crappy, they can just put it behind them. My project is still going to be waiting for me tomorrow in the exact same spot i left it when i went home, so the stressful times can be very stressful. Not saying it's all bad obviously

    • Yes your eventual salary is going to be better, but remember that it would likely take you a few years to get to the same salary as your teaching salary. Engineering grads usually make about $60k in the first year, maybe better nowadays. Unless you want to go live in a mine… I got to $125k after 4years, but in all honesty i was being super overpaid for something i was underqualified for, and mainly used my personality to talk myself into the job. My wife is an senior engineer, leads a team, and she's worked for 8 years to get to $110k.

    • If you think you're going to make heaps of money WITHOUT having to take on an admin/principal-style role…then i'm sorry, you're mistaken. Engineers are pushed towards 2 fields - technical expert, or project manager.

    • There's a high attrition rate (very high in the first 2 years of uni) of engineers in the workplace. My eng friends and I have theorised that it's because your responsibility levels versus your pay levels don't usually line up until you've worked for maybe 10 years - you're underpaid for the level of work and responsibility you have to take on. That's why so many engineers branch out and change jobs but still use the skills

    • You say how you're good at calculus etc, but i think you might find that engineering mathematics is a lot different to teaching year 10's. I found it quite a wakeup call when i got to 2nd semester in 1st Year engineering maths. And it definitely gets much harder after that point. I've rarely had to use most of this high level maths, but we ended up doing some pretty funky maths.

    There's plenty of positives too, I love being able to see something through to completion, the hours are flexible, the jobs are always changing, and you get plenty of opportunities to prove yourself and make your mark.

    I'm definitely not saying that you shouldn't look into it. But i'd probably recommend you somehow get a bit of time at your dad's engineering firm and see what kind of things take place there. It's easy to get sucked up in the mindset of "Yeah i'll be building massive bridges and aircraft and rockets" but the reality is that most of us end up doing things that are a little more meaningless. Especially as graduates.

    PS> I have a good friend who lives in Dubai (30), and I definitely think it's something to consider, she does very nicely for herself, has great friends. But downsides:

    • Your friends are constantly coming and going, and it's hard to hold onto relationships because noone is there to stay
    • Romantically, she's had a devil of a time, because of the same mindset as the friends. People come and go, and suddenly that guy you were with, has another job overseas and moves away
    • You can't settle down there and buy a place, so never feel totally stable
    • The city itself is pretty…plastic. There's no little cute bars or cafes or restaurants, everything is big and flashy and over the top
    • She said how much she misses just going for a bushwalk, or something that doesn't involve sand!
    • MarsTitan on 30/01/2019 - 18:03

      Agree with most of your points. There is something to be said about a pay difference between genders in engineering.

      I'm just curious about your overseas friend. Did you ask her about tax? Why is she not coming back?

      • jellykingdom on 30/01/2019 - 21:34

        Yeah she pays 0 tax, and they only just introduced GST
        Petrol is dirt cheap, rent is Sydney level and she makes as much as I do (but then no tax…)

        She's not Aussie but she's trying to immigrate here

    • Ghost47 on 31/01/2019 - 21:38

      you also will just as likely just find yourself working in an office as a Spreadsheet Engineer.

      Out of curiosity when you say this do you mean using Excel for engineering purposes or working on spreadsheets in another industry?

      Really good to hear from an actual engineer.

      • jellykingdom on 01/02/2019 - 09:46
        +1

        Well i mean it would spreadsheets for engineering purposes, so the sizing of pipelines, pumps, mass-balance calcs, basic structural calcs, and that sort of work.

        I personally just don't find that kind of thing very interesting (probably why i went into project management), and as a general rule neither do most other people i know.

        • Ghost47 on 01/02/2019 - 17:37

          Fair enough. Mainly asking because I've heard of Excel being used for engineering purposes but I've never seen an engineering spreadsheet (I've heard that some engineering spreadsheets can be a few hundred megabytes in size).

  • mookyness on 30/01/2019 - 10:38

    Holy shit for the sake of your financial future, do not go back to uni and increase your HECS debt. Haven't you realised yet that your 50k + debt that landed you a 70k/year job is shit? You can get 70k a year at woolies managing…

  • Cyphar on 30/01/2019 - 10:56
    +4

    I've become increasingly concerned about my financial future

    I do currently have about 115k in a high interest savings account.

    My meagre salary (72k)

    Is this some kind of joke?

    • MarsTitan on 30/01/2019 - 18:04

      No, this is what happens when you read whirlpool forums a lot.

    • Eeples on 30/01/2019 - 23:26

      I’ve been told it’s bragging.
      I wonder why I missed that possibility.

  • kevo0711 on 30/01/2019 - 11:10
    +1

    @Lucy

    Basically it comes down to priorities:
    1. A job you enjoy doing
    2. The pay you receive - for your current or prospective job
    3. Where you enjoy or don't enjoy living and what type of accommodation you want to live in.
    4. Family considerations in the future.

    As a parent, I see tuition as a potential source of increasing your income, not just a little but a lot. I have struggled to get a tutor for my kids and I know teachers that tutor outside the classroom that charge between $50-$100 an hour.

    I think wanting to buy your own place is a good idea and you have a good deposit going there. Obviously as a first home you want something reasonable. The median house price is really second home territory so expecting to fork out approx $800k for a first home is not realistic. So my advice is be realistic! Once you pay things down then you can upgrade…your circumstances will change too e.g. marriage and income etc. It will not be the first or only house you buy.

    I would have been lucky to earn as much as you at your age. We conservatively invested in property too. We managed to balance our lifestyle with our investments. That's not to say that we didn't have to make sacrifices along the way.

    Your idea of a career change is interesting. I would just add that it would be a tough path. I'm in accounting and I've interviewed many people making a career change from science and math background. Its a tough road trying study again and climb the competitive ladder. In my area (accounting) yes you can get $150k pa but it becomes really competitive and political - its like a whole new career in itself.

  • ZeroX03 on 30/01/2019 - 11:49

    72k for a 4th year teacher in a private school seems too low. I've just started my 3rd year (private school) and I'm pushing 76k. I suppose it differs from school to school but ours always give an additional pay rise, which does not include the mandatory raise. Best bet is to look around.

  • Milk tea on 30/01/2019 - 13:53
    +2

    I don't understand how you have $115k savings but less than $20k super. It doesn't add up even if you've only started working full time in the last 4 years.

    • kingmw on 30/01/2019 - 20:54

      I can think of at least 3 possibilities.
      1) dodgy employers who don't pay super or pay cash only
      2) Multiple super accounts with lots of fees/insurance premiums which whittle it down (esp if retail funds)
      3) No/Low risk investment choices e.g. Cash option, Fixed interest instead of shares, property, overseas stocks

      • Milk tea on 30/01/2019 - 21:24

        I thought about these possibilities beforehand but she said that she has been a teacher for 4 years now in which she would be on at least 9.5% super contribution on the balanced portfolio as standard super accounts are. Also as a 32 year old, you would assume that she would have had a few odd jobs here and there over the years that would have added a few thousand to her account.

    • Eeples on 30/01/2019 - 23:28
      +1

      Hard to believe December was that bad.

  • MementoMori on 30/01/2019 - 14:43
    +1
    1. Add more to super when you can.
    2. Buy a basic 2 bedroom apartment and rent the room to a flatmate.
    3. Saving will get you there quicker than earning more.
    4. Consider what will happen when you have a child (or children).
    5. Consider your standards around finding a man - lots of very solid men out there, problem is 80% of the women want the top 20% of men though. Once they realise they've been too picky it can be too late.
    • jellykingdom on 31/01/2019 - 10:03

      You were making sense for the first 4 points haha. i don't think OP came on here for a critique of her lovelife

      • MementoMori on 31/01/2019 - 12:03

        Well, she has discussed it and and a big part of raising a family (and paying for the kids) is forming a relationship with a guy for security (financial security moreso in the modern world).

        She's complaining about not being able to find a guy when we know there are many good guys out there.

        We may like it or not but it's the most common path to wealth for women.

        • jellykingdom on 31/01/2019 - 12:49

          I appear to have not read all of the comments on this post

        • littleDealFish on 04/02/2019 - 21:48

          lol seriously so many of these comments… OP standards are a good thing.

          To all the men out there that think women are gold diggers - i think most people are just happy if their partners are a productive member of society - male or female. Society places far too much value on men $ potential (look at suicide rates and how men see themselves - it sucks) and you shouldn't buy into it… (no pun intended)

          Also to the comment 'women are strange creatures'. No, women are not from venus, men are not from mars. People either like you or dont - this doesn't make them strange it just means some women aren't into you and vice versa.

    • Homr on 31/01/2019 - 12:54
      +1

      100% agree with point 5

      I consider myself a solid man :) however women are strange creatures who don't know what they want.

  • Spacedman on 30/01/2019 - 22:12

    Lots of info on here and hopefully this hasn't been said already.

    First of all don't panic, thinking about your super in your 30's is a good start and the good news is you will probably be working for at least another 30 years.

    Go on to your super providers website and do a super calculation and play around with the numbers to see how your contributions add up over time.

    Something like the one below
    https://firststatesuper.com.au/member/super/how-much/super-p…

    I am assuming you are contributing to your super each pay and I suggest you talk to your Super provider and arrange for one of their financial advisers to talk to you about your super and your financial goals. This is worth doing and helps you gauge what level of risk you are comfortable with for your super.Just check if this is included as part of your super service.

    Go to the ATO website and fill out the find my Super form, your provider may also do this for you. You might have some super from some previous jobs you had and you can roll them all over into your main Super fund.

    Go to the library and borrow/ put on hold the Barefoot investor if you want to read this, this should save you 20 bucks :)

    Plan to review your super every couple of years to make sure you are keeping on track and taking into account any changes in your life.

    Good luck

  • imahapyboy on 31/01/2019 - 01:48
    -1

    find a rich husband

  • yellowfever on 31/01/2019 - 03:36

    Look into commercial construction. A diploma in building would get your foot in the door but better pathway is a degree in construction or civil engineering.
    With 4 years experience and the right attitude you will hit $150k easily working for a commercial builder.
    And it only goes up from there and the job is quite interesting.
    It isn't heavily on mathematics or the like, but rather problem solving, people skills & risk management.
    It does require 50-60hr weeks, and the first 2-3 years isn't as fun or rewarding but with the right attitude it's a great career path, particularly in the eastern cities of Aust.

    In comparison to the pay level of an engineer, you would have to be quite senior of 5-7years to be around $150k+
    The pay level is definitely slower for engineering firm compared to a construction company/builder.
    I am comparing white collar jobs in construction (estimator/project coordinator/cost planner/project manager) to an engineer, not blue collar/tradie jobs. These 2 are obviously not the same and yes you could get great pay in the blue collar construction sector as well.

    • DaneD on 31/01/2019 - 11:11

      Hey mate,

      Any recommendations on commercial construction companies / particular path to chase? Currently doing a degree in construction (3rd year). Looking to get into the workforce.

      • yellowfever on 31/01/2019 - 13:40

        What city are you in and I'll drop you a PM

        • DaneD on 31/01/2019 - 22:27

          Thank you :)!

          Brisbane, but happy to travel where required.

  • NotSureAboutThatMate on 31/01/2019 - 06:01
    -4

    If you're White, move to the country and get yourself a husband in the last few minutes of your prime. The rest of your life depends on what you do in the next 3 years, money will be the least of your problems otherwise.

  • siresteelhell on 31/01/2019 - 06:55
    +3

    Just identify as a man, apparently we get paid more for nothing….

  • JuryWheel on 31/01/2019 - 09:58
    +1

    Interesting that the OP isnt happy with her current financial position. Id say except for the low super, everything else is good. Whats wrong with 72k (especially with the hours and holidays teachers get), 4 years out of uni with potential to rise to 90-100 over the next 5-7 years….? Seems good to me. I certainly wouldnt be switching jobs if you enjoy what you are doing. Surely you just need to continue saving/investing money - do you want to own a home? If not, start looking at shares/efts etc. Since when does everyone have to earn 150k to be well off?

  • diceman99 on 31/01/2019 - 11:05

    Hmmmm
    The best thing you have going is job security, the ability to get a loan and use leverage.
    I would get a higher paying job in desirable regional area. Good area. Job growth. Population growth. Infrastructure. Hospitals gate University rail etc.
    Buy house with your savings and loan. Preferably large block and then subdivide in a few years.
    Share fund ETF if you want a passive investment scheme.
    It tracks the Australian stock exchange index and pays average dividend.
    So maybe 3% Growth in stock index and 4% dividend return.

  • pformag on 31/01/2019 - 13:31

    IF you could find a partner that earns the same as you, then you could still teach.

  • sachinruk on 31/01/2019 - 15:19

    What type of Engineering? If it's software, please don't enrol at a University, no point accumulating more debt. There's plenty of really good online courses/ universities, eg. Udacity, Coursera.

    As for moving to the country, is there a point wasting money on a place where you won't be happy (as you mentioned)?

    Also with tutoring, I'm not sure what Melbourne rates are but I used to charge $50/ hour 5 years ago. Considering you are a teacher you could most likely charge more. Do a basic website and get a google page to get more students on the weekend. Don't devalue your time, even if you are tutoring a year 7 student, you are still using up your time.

  • Eevee on 31/01/2019 - 16:20

    Honestly I think you are doing good at your age and income. Your income (to me) isn't bad. Your super is low but I can't comment as to why that may be. It depends how long you've been working for and what income you had during those years. But know that 9.5% is the mandatory super payment right now so maybe do the calculations and see if 20k makes sense if you had to deposit 9.5% a year.

    If it doesn't add up, check your super fees (and change funds if necessary if they are charging too much) and double check to see if you don't have duplicate super accounts open under your name from previous jobs.

    Your saving of 115k is fine too. You just need to think about what you want to do with this. If you want to buy a house, then buy a house which is really cheap and will suit you (don't buy a family sized house for example if you don't have a partner and secondary income to support it).

    A house to many people's eyes is "financial stability" so a lot of people look to owning one but really it isn't. It's a financial liability in most cases since you have to borrow massive debt and repay huge interest over the life of the loan. So perhaps re-think whether a house is what you really want.

    Otherwise you can decide to invest that money but I won't go too much into how you should do it.

    Overall, I don't think you are as much of a bad place as you think you are. I don't think you need to be looking for more ways to make money, just need to think what you want to do with your money instead.

  • Black Brown Blue on 31/01/2019 - 16:21

    Hang in there. You are doing well. My recommendation would be to keep on saving, keep on hustling, you will will eventually get there. I would recommend working in a rural town as pay is higher/same and other costs are lower and therefore savings are higher. I have been working and living a rural town for past year and been enjoying it. I would only go overseas for the experience and would not recommend for saving( do your research before taking such a big step). You could try changing to a different employer, do postgraduate study in your area or advance further, this will improve your income. I am an allied health professional with same income as you and currently doing postgrad certificate that will boost my income by 10-20k in another year. If you enjoy teaching, don’t bother with engineering just for the money. Lastly don’t worry about hecs debt, it is the cheapest loan you will get and let it get deducted at the end of tax year. Hope you meet someone soon. All the best amigo.

  • mataeka on 31/01/2019 - 22:04

    I'm thoroughly curious how your super is so low o.o I'm roughly the same age, only worked full time 6 years (part time 2) and I'm closer to $30k super with never having a job pay more than $40k/year. I know my super ain't worth bragging about but I also can understand why it's that amount.

    That super is failing you really bad.

    • Milk tea on 01/02/2019 - 14:20
      +1

      I still say it's bs unless she took out super for hardship reasons such as medical

      • akyeeeahdude on 03/02/2019 - 21:03

        As posted earlier, it's likely that she hasn't worked much as an employee in Australia hence the very low super. Also possible she was self-employed and didn't make contributions (as it's optional). The large savings at 32 indicates either gifted or inherited money or earnt overseas.

  • Hirolol on 31/01/2019 - 22:51

    Move to the country to earn big money then while you are there go to school to get the degree to earn big bucks.
    Maybe if you go you might find a special someone.

  • Gamer Dad Reviews on 31/01/2019 - 22:55
    -3

    You should never have followed the Marxist-feminist social programming. 32 is already nearly too old. You need to get married to a man, pronto! Seeing as you don't have any debt and you seem fairly sensible, you should be a good prospect for some reliable employed man. Aim for a guy around 40 years old and don't be picky about looks at all. Just get married and have 2 kids ASAP. When you're 65 your Super balance will be the least of your worries if you don't have any grandkids. They are you legacy.

    • dandandan on 31/01/2019 - 23:13

      She has HECS debt.

  • dandandan on 31/01/2019 - 23:12
    +1

    32 and $115k in the bank! You have the opportunity to go and travel and maybe do some part time teaching on the side where your travels may take you. There is no need to take on debt to buy a house in a falling housing market. You are still young enough to consider a career change. A degree with experience in teaching opens many doors. There would be less than 1% of the population at your age with a reasonably paid job and six figures in the bank.

  • SupeNintendoChalmers on 01/02/2019 - 09:26

    considering your salary is $76K, your teacher wage is near the start of the award rate scale. In around 5 years time, you'll be encroaching the 100K mark.

    not a bad salary imho.

  • Philloau on 01/02/2019 - 10:24
    +1

    Here is my 2 cents in this discussion:

    Career: Why change career JUST for the money? If you love teaching, stick to teaching. That said… look at career options within your industry. The education department often hires teachers for curriculum development (etc…) and if you so wish, you could work towards becoming a principal etc…

    Investment: Some people will talk you out of buying a house, DONT LISTEN TO THEM.

    For the purposes of the discussion, lets assume you remain single for your entire working life. When you retire, fully owning a property will reduce your costs. Yes, there is maintenance, but thats usually cheaper than renting yourself.

    If I was you, I would be doing a few things:
    1) Rentvest. Look at buying an investment property where the rate of return is good. This could be in a regional area or even interstate. Negative gear the property whilst you still can (if/when Labor wins the election, negative gearing on existing property will be gone soon enough). This approach gets you in the property market in an area that is more affordable than Melb/Syd. If you need to, you can divest and put the money into your primary residence.
    2) Once your HECS debt is paid off, look at contributing more into your superannuation (you can do it earlier if you can afford it). Contributing $20 a week now will mean a massive difference in 30+ years when you retire.
    3)If property is not your thing or you want to diversify your investment, look at one of the indexed funds. (this was mentioned up the page). As a long term strategy you will get a good consistent rate of return over the journey and will contribute to your wealth.

    As also is mentioned, a financial advisor can be not a good choice to get financial advice from (at the moment), however I do suggest talking to an accountant. You ideally want to pay the least amount of tax as you can on your investments as its really dead money. There are ways you can invest to maximise your return and build wealth in the long run.

    Good luck.

  • Lucy1 on 09/02/2019 - 11:29
    +2

    UPDATE: I just got offered a scholarship to study at Deakin. The scholarship will cover about 60%+ of a course in engineering, computer science, IT, or construction management which I can study via distance. I can accept the money in instalments or put it towards my tuition. Ultimately it will about 10k to get a new degree, although I don't want that to be the driving force in making a decision.

    Also thank you so much for all the advice. I've read every post and appreciate what everyone is saying.

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