How much savings do you have?

[Alesana]

I think it's an inappropriate question. I believe that the "money subject" is a very personal one, and it mustn't be talked about in public.

Except on here you're anonymous.

If I sold my shares now and added it to my cash I'd have about $77k. I'm in the fortunate position where I have very cheap rent, a work phone with unlimited data so I haven't had home broadband for over a year, and free Kayo. I need to stop buying 2-3 coffees a day though

 

[ash_1050]

Have about $200k in cash and shares, of which a large chunk will be going towards buying a place in Q1 2021.

 

[Power Raid]

Have about $200k in cash and shares, of which a large chunk will be going towards buying a place in Q1 2021.

get an offset account on your mortgage

that way you can play the stock market on your offset (cheap capital) and reduce borrowing costs when sitting in the bank. It also becomes a tax deduction.

good luck.

 

[MWPP]

I forgot I ever posted in this. Thanks to 8 years of FT work as a professional with no dependents/kids , and despite unexpected expenses and time off
-still enough to buy an investment property outright or sell and upgrade to a better place outright with enough leftover as spare change/for a rainy day

Not convinced that it's worth it given the markets in both WA and Vic at the moment though, and also given circumstances (too much mobility to be able to settle down anyway so it's likely that it would end up rented out while I continue to rent), so it's likely it'll continue to just sit in the bank (the risk-free, ultraconservative approach)

Money (neither spending it, nor saving it) doesn't buy happiness though, unfortunately, so it has still been a very shit year

 

[ash_1050]

get an offset account on your mortgage

that way you can play the stock market on your offset (cheap capital) and reduce borrowing costs when sitting in the bank. It also becomes a tax deduction.

good luck.

Can you expand a little further on this? I'm not quite following how this would flow.

 

[burge13]

Can you expand a little further on this? I'm not quite following how this would flow.

Rather than put the biggest deposit you can

Example A - $200K deposit

Do;

Example B - $125K deposit + $75K in offset and buying/selling shares.

B means putting down less as a deposit to keep and use cash for shares. You're borrowing money at 1.89% (roughly) so provided your returns are better than that in the stock market you'll be better off...

You also don't pay interest on what sits in your offset account but you probably knew that bit

 

[Power Raid]

Can you expand a little further on this? I'm not quite following how this would flow.

When you get a loan, always:
- borrow the maximum amount possible, even if you don't need it. - this often lowers your borrowing costs as a $1m loan is worth more to the broker and bank than a $500k and a $500k worth more than $250k. Everyone wins including you.
- request an offset accout, draw down on the whole loan and put the excess funding into it, so you aren't charged interest on funds you have parked up
- your mortgage repayments always come out of your offset each month
- your credit card repayments are paid from your offset at months end, so no crazy credit card interest charges but all the points
- pay all your wages into the offset
- all interest charged on your mortgage relating to investments are tax deductible
- if you lose your job you have time with funds in offset
- never pay off your loan, ever, just keep open until refinancing. So your investment funding is at secured rates rather than unsecured.

hope that helps

 

[ash_1050]

hope that helps

Cheers, that's given me plenty to mull over and research further for the next couple months.

 

[Power Raid]

Cheers, that's given me plenty to mull over and research further for the next couple months.

Do some reading on borrowings and tax as there are simple rules re Investments and domestic use

 

[Deliverance]

I think it's an inappropriate question. I believe that the "money subject" is a very personal one, and it mustn't be talked about in public. It's very okay to have a saved amount of money in case of an emergency. I call it plan B. I always think about my future, and I try to create opportunities about saving some money. I can advise you to play games for real money. There is a list of games that pays you while playing them. It's a very interesting and great way to make some extra cash. I cash out like 10-15$ per day. And for me, it's a great economy.

Russian bots attack

 

[NonPhixion]

Not going into dollar figures. But a break down of my savings
15% cash
35% WPL
35% ANZ + CBA shares
15% other smaller cap shares

Currently 23, and am looking to buy a house by the time I’m 25. By then I plan to sell all of my shares and contribute whatever savings in cash that I can. My question is if I have a $300K mortgage how much money should I be leaving in the bank ?
My goal is to have the smallest repayments possible... hope that’s enough information

 

[Cruyff14]

Not going into dollar figures. But a break down of my savings
15% cash
35% WPL
35% ANZ + CBA shares
15% other smaller cap shares

Currently 23, and am looking to buy a house by the time I’m 25. By then I plan to sell all of my shares and contribute whatever savings in cash that I can. My question is if I have a $300K mortgage how much money should I be leaving in the bank ?
My goal is to have the smallest repayments possible... hope that’s enough information

It depends how much you're putting down on your house, the interest rate etc.

All the other stuff associated with a house isn't cheap, established or new. Landscaping, concreting, furniture etc etc

I would leave at least $20-30k in there if you're by yourself.

 

[Deliverance]

Depends on your appetite for risk and ability to control spending as well. If it were me, I'd be getting 200k standard loan, 150k line of credit with the extra 50k as my "savings" and a cheap as possible credit card to be paid in full monthly.

 

[burge13]

Credit card limit comes off the amount they'll lend you. Not worth it if you have $ in the bank and income IMO

How beneficial are lines of credit? Can't say I know a lot about them but I'll be looking for a rental property after xmas (big block of land with older, but rentable house to subdivide years from now) so might be something to consider

 

[iluvparis]

Not going into dollar figures. But a break down of my savings
15% cash
35% WPL
35% ANZ + CBA shares
15% other smaller cap shares

Currently 23, and am looking to buy a house by the time I’m 25. By then I plan to sell all of my shares and contribute whatever savings in cash that I can. My question is if I have a $300K mortgage how much money should I be leaving in the bank ?
My goal is to have the smallest repayments possible... hope that’s enough information

Ideally you should have 6 months worth of spending set aside as cash. Obviously if you want as low a repayment as possible just tip everything else into the mortgage.

 

[Power Raid]

Ideally you should have 6 months worth of spending set aside as cash. Obviously if you want as low a repayment as possible just tip everything else into the mortgage.

6 months cash or liquids

 

[freddy mercury]

We always try and have at a minimum four weeks pay each all the time. Which equals about 10k after taxes.

 

[maryjames]

What’s the point of “saving” fiat.

Use it.

 

[Angus Young]

Money doesn't buy happiness though, unfortunately, so it has still been a very sh*t year

But it buys freedom.

 

[bresker]

One million dollars and a bit, thanks to my very clever wife. She bought a dilapidated house in Preston, Melbourne 15 years ago on a $300,000 mortgage. We sold for $1.3 million after numerous renovations and gentrifications. We're renting at the moment but are looking to buy the property for $800,000. Not bad ffor a teacher and not-for-profit policy maker with no parental help.

No debts, we save up and pay cash for everything. I declared bankrupt in the early 2000s so am loathe to borrow. We are massive tightwads, I admit.

 

[Power Raid]

One million dollars and a bit, thanks to my very clever wife. She bought a dilapidated house in Preston, Melbourne 15 years ago on a $300,000 mortgage. We sold for $1.3 million after numerous renovations and gentrifications. We're renting at the moment but are looking to buy the property for $800,000. Not bad ffor a teacher and not-for-profit policy maker with no parental help.

No debts, we save up and pay cash for everything. I declared bankrupt in the early 2000s so am loathe to borrow. We are massive tightwads, I admit.

Nothing wrong with being conservative with your money until you have money to burn

I drove a Suzuki when on $1+m plus a year and only bought luxury cars once I decided enough was enough. Even retained the Nokia Brick when juniors had smart phones.

In my opinion - betting, tattoos, smart phones, insurance (other than third party), the daily coffee, subscriptions (phones, music, tv, magazines, newspapers), credit card interest are items that keep people down and focused on short goals rather than self realisation.

 

[Angus Young]

One million dollars and a bit, thanks to my very clever wife. She bought a dilapidated house in Preston, Melbourne 15 years ago on a $300,000 mortgage. We sold for $1.3 million after numerous renovations and gentrifications. We're renting at the moment but are looking to buy the property for $800,000. Not bad ffor a teacher and not-for-profit policy maker with no parental help.

No debts, we save up and pay cash for everything. I declared bankrupt in the early 2000s so am loathe to borrow. We are massive tightwads, I admit.

**** me.... nice

 

[Cruyff14]

Nothing wrong with being conservative with your money until you have money to burn

I drove a Suzuki when on $1+m plus a year and only bought luxury cars once I decided enough was enough. Even retained the Nokia Brick when juniors had smart phones.

In my opinion - betting, tattoos, smart phones, insurance (other than third party), the daily coffee, subscriptions (phones, music, tv, magazines, newspapers), credit card interest are items that keep people down and focused on short goals rather than self realisation.

What do you do for work?

 

[Power Raid]

What do you do for work?

I've been semi retired now for over a decade, retiring at 37.

I bought into a mining fund when Rothschild left Australia which we grew to the largest in Australia. Owned two controlling stakes in Atlas Iron ($0.22 and sold out when it had a market capitalisation bigger than Qantas), 20% of Riversdale at $0.20 and taken out by Rio at ~$16.......I was simply at the right place and right time when the mining boom came.

I then started up three property companies and numerous operating ventures.

My current fund is backed by an EU government development bank and I'm launching two more with US support and the other China. All three are development focused with a massive focus on employment, regional stability, security of supply, environment, health, taxation, anti-corruption etc.

I've just taken a controlling position in a nuclear power company, an enrichment technology that will transform the industry (clean up all the current waste) and buying up renewable power infrastructure. We've just bought a technology from the UK department of defence to unlock $1.7 trillion in rare earths, breaking China's strangle hold on the commodities. I've also got mines in the Philippines, Peru, Guinea, NT and WA.

 

[Cruyff14]

Holy shit! So you're essentially loaded lol?