Help! 27y.o, Just Got a Good Job, Some Savings and Financially Illiterate. How & Where Should I Invest My Money?

AmericanDad on 26/05/2017 - 17:57

Hi all,

I am a 27 y.o professional who has just managed to secure a well paid job at around $84k after tax plus bonus and shares. This is after working my ass off at shitty job for a number of years. I have saved up a small sum of money, at around $30k (not much). Have no car, no house, no loan, no family. So I have no financial liability but no asset either.

I am looking at investing my money since I know I will start saving a big chunk of my salary.

Questions:

  1. How can I learn to be more financially literate? Any books/websites?
  2. Any suggestion on how and where I should invest this small sum of money?
  3. Any suggestion on how and where I can continue to invest once I start saving more?

Thanks guys!!

Financial

Comments

  • ChunkyToast on 26/05/2017 - 18:07

    I bought 20 Ethereum (Ether) for 1k like a month ago. Now they are worth 185 (USD) each (at lunch time) which equates to about 3.7k. It has taken off in the last 3 months so maybe look into it.

    I am not sure how to convert this into AUD though lol so i gotta do some more research before I can get cash this in.

    • edwardsajl on 26/05/2017 - 19:08

      How did you do this. Sounds interesting.

    • Mika1234 on 26/05/2017 - 20:37

      Setup btcmarkets.net account, transfer eth from your current exchange. Withdraw from btcmarkets to any aus bank account fee free

      Ensure your transfer address is correct, there are no do overs in crypto movement

      • [Deactivated] on 27/05/2017 - 00:29

        risk is high tho, looking at the current volatility of ETH
        admittingly i did double and abit my money with it too. ;)

    • Doggiie on 28/05/2017 - 18:44

      Be careful about giving your thoughts and experiences on virtual currency experiences.

      You need to give them the whole picture that the risks are there, and they need to do their own research about the risks.

  • supnigs super skids on 26/05/2017 - 18:11
    +2

    put into a high yield savings account with the bank. minimal effort on your behalf and safe too.

  • foxmulder on 26/05/2017 - 18:13

    Put your money in first home saver account to get better interest for your first home.

    • scrimshaw on 26/05/2017 - 18:42
      +6

      The government abolished the first home saver accounts (FHSA) scheme from 1 July 2015.

  • doweyy on 26/05/2017 - 18:14
    +1

    If you're keen on getting a house in the future you should look into salary sacrificing some of your salary into the new house saving fund that the government is offering on 1 July because of your higher salary. Investing 30k into it over 2 years at 15% tax and ~10% interest is a fairly decent decision at your age. Not an investment but a very wise decision if you don't need the extra money to live.

    • Bramey on 29/05/2017 - 11:40

      Just to clarify, it's not 10% interest. The ATO has a deemed earnings rate of currently 4.78% whether your super fund performs better or worse than that. Plus when money is withdrawn to buy the house it is tax at marginal rate minus 30%.

  • retiredfeline on 26/05/2017 - 18:16
    +4

    Invest in an avocado farm. You'll have a smashing time.

  • Ughhh on 26/05/2017 - 19:31

    Whatever people are suggesting here
    https://www.ozbargain.com.au/node/305842
    https://www.ozbargain.com.au/search/node/Invest

  • poboy on 26/05/2017 - 19:37
    +2

    Did you post this on Reddit? Here's a great response:
    https://np.reddit.com/r/personalfinance/comments/6d2x0k/3000…

  • railspider on 26/05/2017 - 19:47

    You're on a very good salary and have a decent chunk of savings. Sacrifice a few hundred dollars and go see a financial adviser or accountant (preferably an independent, that only charges an hourly fee) - the long term savings you'll make from that conversation will be worth the investment.

    • altomic on 26/05/2017 - 19:54
      +3

      yeah, but the trick is finding a decent financial advisor. I paid to see one to sort out salary sacrifice and home loan stuff and he didn't tell me a thing I didn't already know. waste of money.

  • Findo on 26/05/2017 - 19:53
    +12

    Buy an $80k car?

    • Skramit on 26/05/2017 - 21:32

      Camrys are not 80k….

      • altomic on 26/05/2017 - 22:02
        +2

        40 2002 camrys are 80k

  • drjoe27 on 26/05/2017 - 19:57
    +3

    The Barefoot Investor book

    http://www.booktopia.com.au/the-barefoot-investor-scott-pape…

    • Azrael169 on 26/05/2017 - 20:45
      +4

      I second this, great book. If you need a car get a cheap 2k job, otherwise continue to live without one, cars are not good investments. Depending on where your at in your life i'd either

      a) buy a place to live in and start paying it off as quickly as you can possibly (definitely rent out the spare rooms etc)
      or
      b) start investing in shares as per the barefoot investor

      Personally i'd avoid super contributions at your age (Barefoot Investor is a big fan of super) as you couldn't withdraw it when you wanna buy a home down the track.

      Wish i'd read Scott Pape's book several years ago

      • altomic on 26/05/2017 - 22:04

        yeah

  • Skramit on 26/05/2017 - 21:33

    OP tell us your goals in the next 5-10 years? House? Wife? Kids?

  • [Deactivated] on 26/05/2017 - 21:55
    +1

    Open a sportsbet account

  • [Deactivated] on 27/05/2017 - 00:30
    -1

    well paid job at around $84k

    well paid?
    isnt that the avg pay in AUS?

    • scrimshaw on 27/05/2017 - 02:15
      +1

      That's after tax, which means his gross income could be something north of 120k

      Quick calculation = 120k presumed gross wage LESS $32,500 tax would be around 87K net income.

  • Cheap Steve on 27/05/2017 - 17:36
    +1

    Book: Millionnaire Next Door

    Website: Mr Money Mustache

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