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Cruyff14 said:
Yeah, we are very sensible.

We save $5000 a month, we don't live anywhere near as much as we could/should, but we are all about the longer term goals.
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Very smart. Me and the missus were the same 20 years ago and now I work part time by choice.

You sound like you'd be good with one of these ⬇️

sabre_ac said:
If you have access to a line of credit that doesn't incur fees for carrying it and you have some self-control, it can be argued that you don't need an emergency fund.

I'd argue most people (myself included) probably shouldn't roll the dice with just a line of credit, that said I feel that 6-12 months is too much, 3 months seems like the happy middle ground.
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Deliverance said:
Very smart. Me and the missus were the same 20 years ago and now I work part time by choice.

You sound like you'd be good with one of these ⬇
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We don't have any children, but we've just settled on our second property (land, to build), so that figure will go down, but we will still be able to bank a fair bit until we settle.

Not sure exactly what a line of credit is, but we are very sensible with our savings and make sure we have money.
 

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Cruyff14 said:
We don't have any children, but we've just settled on our second property (land, to build), so that figure will go down, but we will still be able to bank a fair bit until we settle.

Not sure exactly what a line of credit is, but we are very sensible with our savings and make sure we have money.
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An account to help you smash your mortgage, better than an offset. Good for disciplined people.
 
Deliverance said:
An account to help you smash your mortgage, better than an offset. Good for disciplined people.
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Ah, probably not in a position to do that now with the land settling and construction due to begin in next 6-8 weeks.

For a period we were a few grand ahead on our repayments but we moved some money around for the build etc.

We have a joint account (for groceries, direct debits etc), an individual account each, long term savings (circa $75k in there for settlement of house, we will keep adding to this though as we will need to buy things, and do stuff like driveway etc), and another account for long term expenses - car insurance, body corp etc
 
Old m8 said:
I penny pinch, and also don't buy things unless it's a need. I'm 18 and have about $10,000 in my account, im not a huge fan of going out though, so I don't piss much of it away.

It's not all that hard, just spend money when you need to. There isn't a secret to saving, really.
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Update on how I’ve done since 2011 for anyone interested.

I was making about $30,000 a year here.

I’m 27 now and make about $60k.

Bought a house at 23, with a mortgage of about $269,000.

I invested on and off for 10 years, but decided last year to go full growth with cash rates declining.

So I’ve got about $115k in shares and about $3k cash at the moment.
 
Old M8 said:
Update on how I’ve done since 2011 for anyone interested.

I was making about $30,000 a year here.

I’m 27 now and make about $60k.

Bought a house at 23, with a mortgage of about $269,000.

I invested on and off for 10 years, but decided last year to go full growth with cash rates declining.

So I’ve got about $115k in shares and about $3k cash at the moment.
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I’m now 32 and earn $84k which is the most I’ve ever earned.

Have the same house but mortgage is now $350,000.

No renovations, have just borrowed to invest as I’ve earned more

Have about $255k in shares and $32k in cash.

Made some mistakes with share investments I made in that covid boom. Had I stuck to ETF’s I’d probably have another $80k

Have been mostly single but have a partner at the moment. Don’t live together or share finances though.

See you all in another 5 years
 
Cruyff14 said:
We don't have any children, but we've just settled on our second property (land, to build), so that figure will go down, but we will still be able to bank a fair bit until we settle.

Not sure exactly what a line of credit is, but we are very sensible with our savings and make sure we have money.
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other than an offset account it is not common to get a line of credit

A line of credit is often just a mortgage which can be drawn down like an offset account. They are more useful for those that run a business and need to "go bankrupt" quickly in case of a frivolous legal issue arises
 
Power Raid said:
other than an offset account it is not common to get a line of credit

A line of credit is often just a mortgage which can be drawn down like an offset account. They are more useful for those that run a business and need to "go bankrupt" quickly in case of a frivolous legal issue arises
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A lot has changed since that post haha.

Apartment sold (made a good profit), in our house now (will be 4 years in June).

Have a two year old and another one due in March, we owe $524k on our loan. Got $26k in the bank and $60k in our offset.
 
Power Raid said:
increasing ones wage is always helpful but generating income through shares and other investments is a must to generating real wealth
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It is.

As is changing some laws to reduce the amount of rentier capitalism that is going on at the moment. Income is only half the problem, plenty of people earning good money having to part with too much of it.
 
kickazz said:
It is.

As is changing some laws to reduce the amount of rentier capitalism that is going on at the moment. Income is only half the problem, plenty of people earning good money having to part with too much of it.
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The issue I have with income from property, is it should only be derived from rent. The "large if not all of" the capital gain should be the benefit of the "crown".

By capping capital gains in property, this would encourage investment in long term asset classes such as medicine, infrastructure, renewables, R&D, technology etc etc.

A sensible solution:
  • a clever wealth tax designed to negate income tax evasion
  • increase GST (together with a wealth tax offsetting our current reliance on income tax)
  • reduce CGT discounts on property in a stage time based milestone
  • reduce the tax on women by 15% for life per child (capped at 45%) with 50% being put into their super) over the age of 28 (negating the sex inequality at retirement)
 

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Cruyff14 said:
A lot has changed since that post haha.

Apartment sold (made a good profit), in our house now (will be 4 years in June).

Have a two year old and another one due in March, we owe $524k on our loan. Got $26k in the bank and $60k in our offset.
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we done.

You've probably grown your wealth by 8% per annum on your home. Assuming a $700k property purchase that probably equates to around $1M today. A tidy $250k-300k tax free (obviously adjust up or down based on the purchase price). Plus the $86k is an excellent foundation.
 
Power Raid said:
we done.

You've probably grown your wealth by 8% per annum on your home. Assuming a $700k property purchase that probably equates to around $1M today. A tidy $250k-300k tax free (obviously adjust up or down based on the purchase price). Plus the $86k is an excellent foundation.
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House and land cost us total $742k.

Yeah, but if we use that $60k we pay more as it's offsetting our interest.

Very handy to have there though.
 

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