22 y.o, have a graduate job and saved up $10K. What should I be doing with my money?

LMelbBargainHunter on 12/06/2017 - 00:30

I've been lurking these forums for quite a bit and I've seen some pretty solid advice, so I thought I'd make a post too!

So here's a little info about me:
* 22 years old
* Have been working at an accounting firm as a graduate for a few months
* Currently living with parents (not many expenses besides the basics - phone bill, car insurance/rego, food, etc.). My car is already paid off and I don't plan on buying another one in the near future
* Saved up $10K
What should I do with my money now and going into the future?

Here is what my plan was:
1. Put the $10K aside into another high interest rate bank account and leave it there as an emergency fund
2. I currently have just over $30K in HECS-HELP debt. Once I save up another $10K, I want to put it towards this debt. I know that HECS is "interest-free", but to be honest, I would rather pay this off quickly (within the next 3-4 years) and have one less debt to worry about when I move out of my parent's house in the future
3. Start investing in shares (probably once I save up another $10K or so)
4. Do a bit of travelling whenever I get the chance

What are your thoughts? I know there may be a few others who may be in my position, so hopefully this thread can help out others too!
Thanks! :)

P.S. A high yielding investment such a $80,000 car is not an option ;)

Financial

Comments

  • Wystri Warrick on 12/06/2017 - 00:56
    +52

    P.S. A high yielding investment such a $80,000 car is not an option ;)

    It is if your single, can help to pay off that house 2x as fast ;)

  • KitchenSink on 12/06/2017 - 01:07
    +34

    Start investing in bargains on Ozbargain…best investment I've made

    • Wystri Warrick on 12/06/2017 - 01:08
      +4

      I can second this!

    • KitchenSink on 12/06/2017 - 01:09
      +86

      But seriously, look at travelling and start enjoying your life for a bit before life gets you…you're still young

      • montorola on 12/06/2017 - 16:06
        +34

        +1 to travelling.

        Just remember - no one ever looks back and says "I wish I didn't travel as much when I was younger"

        You cannot put a price on life experiences and the people you'll meet along the way.

        • shrugies on 12/06/2017 - 17:44
          +11

          TRAVEL! Plan out when you have leave for work or when you can get leave, buy cheap flights when you see them on sale- travel. Immerse yourself in other cultures, history, sights, the natural beauty of the world and meet and interact with people who've lived their life completely different to how you've lived yours. If you can't go with a friend/s or your partner, travel solo and you'll learn so much about yourself. Save money with Airbnb or cheap hotels since you'll be out all day, ball out occasionally. Don't worry about your interest free HECS debt, I think the time-value of money wins out.

          TED-Ed has a great video on money vs happiness (Would winning the lottery make you happier https://www.youtube.com/watch?v=juO4zxsjSjw)

          TL;DR : Travel. Don't worry about your HECS (Time value of money). People are most happy when they don't need to worry about bills, and experiences far outweighs material things.

        • Mr Frodo on 13/06/2017 - 17:43
          +1

          You cannot put a price on life experiences and the people you'll meet along the way.

          I think you just did. $10,000!!

          I agree though- travel, travel, TRAVEL!

  • Clear on 12/06/2017 - 01:15
    +5

    The way I did it was putting most of the money in a high interest account and leaving a small amount ($2-4k) in a normal account for emergencies. Has worked out quite well since then.

    I personally didn't consider shares until I had about 4x that amount, but wanting to save for a house threw that idea out the window.

    • Kangal on 12/06/2017 - 08:31
      +16

      ^Never trust a Black Kettle

    • giles on 12/06/2017 - 10:57
      +2

      If you're putting most of it in high-interest savings account, just lump any 'emergency fund' in with that, especially if it's $'000s. Or, set up a separate high-interest account if you really want to keep that money separate.

      It'll take literally two minutes to transfer it back out into a transaction account if you do need it, but you may as well have it earning interest in the meantime.

      • Clear on 12/06/2017 - 11:32
        +1

        Depends on which bank. Some will cut your interest if you withdraw over a certain amount.

        • giles on 12/06/2017 - 11:45

          That's true, so choose any savings account carefully. Even so, is the interest rate penalty for any longer than a month?

          [edit — This is also where having a separate (second) high-interest account might help. Even if you do cop a interest rate penalty, it will only be on the amount in the second account, not on your total savings. And even your earnings for the 'emergency' amount do drop for that month, your (reduced) rate would still be better than having it in a bog-standard transaction account.]

          I'm all for setting aside money in a transaction account that you'll need to dip into every month.

          It's possible my interpretation of 'emergency' is different to yours. Emergencies, in my mind, are unexpected / unlikely / infrequent — like an operation, or car repairs after an accident, or travel for a funeral.

      • Wystri Warrick on 12/06/2017 - 15:51
        +2

        This, I keep all my money in a high interest account, only when I buy something do I transfer it to the transaction account.
        I have my bills to automatically withdraw a weekly amount from my transaction acc, and the day before to automatically transfer the required amount from the savings to the transaction account.

        • johnno07 on 12/06/2017 - 17:33
          +4

          I do the exact same thing. I'm with ING. My salary goes into my Savings Maximiser where it earns 3% and I just transfer it out to my Orange Everyday (0% interest) as needed (manually, or scheduled). I keep a $100 in my transaction account at a time. In response to the OP - if I only had 10K savings I would be keeping it easily accessible in an online savings account. There's not really enough spare there to do any serious investing. Also paying off your HECS is a ridiculous idea. It's not "interest free" - in quotes - it is literally INTEREST FREE. It's merely indexed. Just pay it off at ~4% out of your salary.

    • Houston11 on 14/06/2017 - 10:22
      +5

      put it in Ethereum

      • Meconium on 14/06/2017 - 17:53

        Was gonna say the same thing. Made $1k since the weekend from my small investment so far!

        • winhhh on 14/06/2017 - 21:39

          I was actually looking up how to get into all this cryptocurrency stuff earlier tonight and am still confused, could you shed some light/point me in the right direction to get started?

        • Garden gnome on 14/06/2017 - 22:51

          @winhhh:
          You need to set up an account to trade bitcoin or ethereum. I opened an Independent Reserve account and had to prove my identity.
          Then you enter your bank account details or pay via Aus Post's Poli Pay to deposit money into the trading account, then you can purchase various crypto-coins including ethereum and bitcoin. I used I.R as it seemed more secure however other marketplaces might be cheaper in terms of fees.
          Other markets used to trade coin include btcmarkets.com but I have never used them.
          It is worth getting a 'wallet' for your purchases to ensure that if the trading site is hacked you have the bitcoin/ethereum stored somewhere more under your control. There is a small fee to transfer coins to wallets however. They transfer nearly straight away and there are various options for wallets.

        • [Deactivated] on 15/06/2017 - 19:01

          btcmarkets also works well. Worth signing up to them and IR, so you can pick the best entry price.

          Don't put in more than you can afford to lose though. There's a good chance that you could make a lot of money but the price is incredibly volatile. If you're still keen, buckle up and enjoy the ride!

  • trustnoone on 12/06/2017 - 01:17
    +3

    I remember someone here posting this link: https://www.moneysmart.gov.au/investing/invest-smarter/smart… might be useful.

    • horsome on 13/06/2017 - 11:28
      -4

      Wow, down to minus 7, not at all offended, didn't realise this was PeterPanBargain.

      • PJC on 13/06/2017 - 15:51
        +3

        Ha! I'm down to -21 and I only suggested he becomes debt-free!

        • Wystri Warrick on 14/06/2017 - 00:25
          +2

          That made me laugh :).
          Yeah it doesn't make financial sense, but it really is uplifting and fills great to say I don't have any dept :).
          Have some up votes :)

        • PJC on 14/06/2017 - 01:00
          +2

          @Wystri Warrick: Much appreciated, especially now I'm hammered down to -28! But if (God forbid) OP's earning capacity unfortunately alters, the debt remains.

    • Doggiie on 12/06/2017 - 09:57
      +26

      I will have to disagree with this.

      You need to do your calculations and determine whether the current (and future) indexation rates is higher than the after tax implication of savings interest. Mr OP accountant would understand what I'm saying (I too was an accountant for a while).

      • PJC on 12/06/2017 - 10:54
        -6

        Fair enough, but a cheaper-than-usual debt is still a debt. Kill a debt early and it won't come back.

        • giles on 12/06/2017 - 11:06
          +26

          I'm with Doggiie — if the interest you earn on savings (less tax accrued) is more than you'd pay in student loan fees, then bank the money.

          What's important is to do the maths properly to see which option is better financially.

          I wouldn't recommend sacrificing something that puts you financially ahead, in favour of the 'feeling' of being debt free.

        • PJC on 12/06/2017 - 11:17

          @giles: Your point is of course valid but I suggest being debt-free is much more than a feeling but a reality preferable to debt.

        • whooah1979 on 12/06/2017 - 11:39
          +2

          @giles:

          in favour of the 'feeling' of being debt free.

          debt stress, even a minor one like hecs can be lead to a number of emotional problems.

        • Doggiie on 12/06/2017 - 11:54
          +2

          @whooah1979: But the debt stress is only human-psyche fallacy in this scenario. You are actually getting a financial benefit by not paying it off even if you have the means to do so, and hence further reducing this 'debt stress'.

        • giles on 12/06/2017 - 11:59
          +1

          @whooah1979: Thanks to PJC and w1979 for your contributions. I don't want to minimise the impact of debt, and its effect on people.

          For sure, there is emotional and intangible value to relieving yourself of debt — beyond the raw number value — and people should consider their own individual circumstances as to what is most important to them, and how it affects their lives.

          What I'm talking about is choosing an option that is financially and mathematically better. That is, what puts a person in an improved net financial position, assuming that is what they want — and that's how I approached the OP's request for advice.

        • c0balt on 12/06/2017 - 12:32

          @giles:

          HECs accrues interest at a rate similar to rental yield in demand areas on an investment property.

          Can you find examples of which bank offers a higher interest rate on savings than HECs indexation? This isn't the early 2000's anymore and those bank interest rates on savings haven't existed for a long while.

          Had I not paid off my HECs (graduated in 2009) last year with my savings, I would have accumulated more additional debt than my money was earning at the best rate I could get. I honestly felt like an idiot because I could have done it a few years earlier but instead I was paying dead interest money for a long while.

        • giles on 12/06/2017 - 12:40
          +1

          @c0balt: Hey c0balt. I'm not looking, tbh… all my savings go into offset, and fortunately I'm enough of an old fart that HECS debt is a distant memory.

          The OP indicated they were looking at a high-interest account, so my advice (agreeing with another commenter) was simply to do the maths to calculate properly which option would put them in front.

          It sounds as though we agree on the underlying principle though: figure out what's financially more beneficial first, then use this information to consider the options.

        • Elwes on 12/06/2017 - 12:43
          +1

          'This isn't the early 2000's anymore and those bank interest rates on savings haven't existed for a long while.'
          The indexation rate goes down when the interest rates go down.

          HECS was indexed at 1.5% the last two years, 2.1% the year before.
          https://www.ato.gov.au/rates/help,-ssl,-abstudy-ssl,-tsl-and…

          Currently you can get 3% from ING or 2.5% at many other banks.

        • c0balt on 12/06/2017 - 12:54
          +1

          @giles:
          @Elwes:

          OP thinks HECs is interest free. Problem is that it has compound interest on it under the guise of 'indexation' at CPI.

          If he works and earns above the tax free threshold, then he's going to have to pay tax on the savings interest. So that 2.5% or 3% at ING all of a sudden becomes a lot less when you have to pay a nominal tax rate on it. Now if you want to look at only the last 2 years of indexation and put blinkers on to trends over time, and the way markets are going - then sure believe what ever you want within your margin of risk rather than be prudent.

          Indexation since 2011 has been hovering around close to best rates with the last 2 years only really being any indication that it would be better to put the money in the bank. But then if you work and have to pay tax on it then you are screwed as HECs repayments are are not even tax deductible.
          https://www.ato.gov.au/rates/help,-ssl,-abstudy-ssl,-tsl-and…

          Putting money into a savings account is dead money these days, unless you are actually saving for something and not using it as passive income.

          If I was OP I'd be paying it off ASAP in lump payments as there are significant discounts when doing so, and I was in a similar position last year.
          http://studyassist.gov.au/sites/studyassist/news/pages/chang…

        • giles on 12/06/2017 - 13:39

          @c0balt: t

          Good advice for the OP — steps out the kind of maths / working I was suggesting

        • redfox1200 on 12/06/2017 - 17:14
          +4

          @c0balt:

          there are no discounts for lump sum payments. the article you linked just said it was phased out in January 2017

        • c0balt on 13/06/2017 - 10:41
          -2

          @redfox1200:

          Oh well. Snooze you lose, like the OP did.

          It doesn't chance the fact that he's still better off paying it as he's earning quite a bit of money - and that the interest will be close to if not less than the nominal tax he will have to pay on it as an accountant.

        • Trance N Dance on 15/06/2017 - 19:09

          @c0balt:
          Sorry c0balt but HECS is not compound interest. It's indexed, which means that (currently) on the 1st of June every year the amount you owe is multiplied by whatever the index rate is at the end of March. Currently that is 1.5% and 14 days ago all HECS debts were multiplied by 1.015. This is simple "interest", it merely corrected this year's numerical value of the debt to be the same as the potential purchasing power of the debt last year. So on a debt of $100k last year (so perceived by the RBA) it has to be $101,500 this year to have same purchasing power. This is why if you're income tax bracket is below the 45% (the highest) you're actually better off to put it into a high interest account like ING or uBank than to pay off your HECS, as the interest in the bank account is not only double that of the indexation, it's compound interest calculated daily whereas HECS is simple "interest" calculated yearly (yes if you have it over multiple years it can be argued that it's compound interest as well, but for this purpose it essentially isn't).

          Better yet, shove whatever you want to pay off your HECS by into a high interest account and then a few business days before the 1st of June pay that into your HECS. Your loan will decrease before it's indexed and whilst in the last year it's earned interest for you.

        • [Deactivated] on 01/07/2017 - 12:02

          @Trance N Dance:

          It's still compound interest just calculated yearly.

          Simple interest would be if they indexed only the initial debt of 100k every year.

      • geoffs87 on 13/06/2017 - 10:11
        +1

        Completely agree with DOggiie,

        I have nearly 100k in HELP debt (and paying it off at a solid rate, too - albeit the minimum). I have a couple of houses and other investments, never paid more than the minimum!

        Think about the opportunity cost. If you have $30k HELP debt at approx 1.5% pa interest (pegged to inflation), thats a cost to you of $450pa. Even in a low 2% interest account, that $30k will earn you $600pa.

        If you can find better ways to invest that $20k, which i won't go into here for I don't understand your risk tolerance, you could earn around 5% or more in dividend or cash return etc etc. 5% = $1500pa. I don't know where some people get off thinking that joy from being debt free > $1000pa in extra income.

        You will pay off that 30k over a few years at your new income rate anyway. Remember, not all debt is bad debt. Debt that earns you an income is regarded as good debt. You can use that $30k HELP debt as 'perceived debt', so earn an income off your cash

        Best of luck!

        • c0balt on 13/06/2017 - 10:48

          You have to pay tax on that $600pa interest where as the 1.5% indexation is a compounding interest.

          That 1.5% indexation was only the last 2 years, chances are you and he had a HECs debt in the years before too where it was greater than 1.5%, and will in the years after where it has a greater chance of doing that too.

        • moonphase on 13/06/2017 - 17:39

          I thought the minimum payment includes that 1.5%. Never heard HECS put compound interest. (unless you did not make minimum payment)

        • c0balt on 14/06/2017 - 12:45

          @moonphase:

          HECs indexation is compound interest at CPI.

          It continues to accrue the rate on the balance regardless if you make repayments or not, until there is no outstanding balance.

          So if he put the 10k into the bank, come tax time he would watch the outstanding balance go up by indexation (1.5% currently but subject to swings), pay the minimum repayments (around 6% on the balance for a 60k/pa income), and then pay tax on the interest from the 10k investment.

          With an account's income and around 30k in HECs balance, he could put the thing to rest within a few years without making any compromises to his comfortable lifestyle. He would be much better off using that money for a great trip and invest in himself rather than 'invest' in a savings account at a bank with 10k.

          One thing I do know for certain though is that OP would not the accountant for me. Bit weird to think he wasn't aware of HECs having interest repayments or the level of taxation at each step. He's literally asking the most basic accounting questions and doesn't seem to have an understanding of what I thought to be very rudimentary in the field.

    • Fobsessive on 15/06/2017 - 22:08

      A-L=E.
      Paying off "interest-free" debts early won't put you ahead.

  • garetz on 12/06/2017 - 02:55
    +21

    As im sure you have read on these forums before, hecs debt is the cheapest loan you can have. You shouldnt pay it off unless you are comfortable financially doing so.

    • Gina Rinehart on 13/06/2017 - 18:03
      +5

      I'm in an almost identical situation to OP (albeit with more savings).. No way am I paying my uni debt yet. It'll set him back years of saving to gain virtually nothing.

  • Cluster on 12/06/2017 - 03:57
    +4

    Save a bit, invest some, travel as well. You're young and should enjoy life rather than doing the usual thing of saving everything and piling $50k into a minimum deposit for a house, and then being a slave to the overinflated mortgage for 30 years.

    Once you move out your living expenses will skyrocket and your savings rate collapses. Enjoy the next few years.

  • Architectonic on 12/06/2017 - 05:38
    +7

    Continue saving. Saving is a great habit for the future…

  • bpop99 on 12/06/2017 - 07:33
    +16

    Firstly get a credit card - having regular income and some savings will get you through the door. Get 2 and apply for them spaced 1 or 2 months apart. Next, use each card only once a month - preferably set it up for something fixed and regular such as your Netflix subscription. Then cut up those cards.

    Next, take the $10 k and divide it into 3 (proportions are up to you). One portion, open an Fixed Deposit(FD) and put it in for 3 - 6 months. Next portion, open a StockSpot account and buy into one of the index funds. Lastly, open an Independent Reserve account and buy either some bitcoins or ethereum.

    Here are some important notes on why i suggested the above:
    1)Getting a good credit history is extremely important - unfortunately, most people only think of it when they need it some form of credit. You're smart, and invest-savvy, and you've already got a head start
    2)Credit cards are a really good tool to have access to EMERGENCY CREDIT - and this has 2 key benefits. Firstly, you never know when you may need extra cash for emergencies. Secondly, it allows you to sock away your actual cash holdings into longer-term, higher yield investments without the worry that you will need those funds for emergencies.
    3)You will be tempted to spend if you have credit (trust me, you will). Cut up the card so you cant use it. But when the need arises, you can ring up the bank and have them send a new one. Amex basic cards for example have no annual charge and no replacement fee, so its pretty much a no brainer. And most banks have some form of 24 hour courier if required.
    4)Anything under 10k for investing directly in stocks puts you at a disadvantage due to fees and lack of diversification. Low cost investment funds are the best way to go. Stockspot has a low starting minimum ($2k) and one of the lowest fees
    5)Dont make voluntary contributions to your super if you expect your future earnings to outpace the average Australian income - since there is a limit, this should be utilised for tax breaks when you reach higher income brackets
    6)You can decide to spend the portion saved in your FD for medium term expenditures such as travel, (edit:paying off HECS), etc
    7)Investing in cryptocurrencies are optional but I personally think they are a good bet long term

    Source: I'm an accountant but note that this is generic advice made in good faith that may or may not apply to you. Some personal bias may apply but I do not work for any of the companies indicated above

    edit: Paying off your HECS is optional. From the perspective of investing, if you can invest those funds in a higher-yield investment than the interest rate you pay on your HECS, it would technically be better to pay it off slowly. That said, I do like being debt free, and its probably more ethical to do so if you can

    • Kangal on 12/06/2017 - 08:43
      +5

      Seems like dangerous advice to be honest.
      I think he needs some rope, and should blow that money on some friends, girls, himself, and travelling —he'll regret it later.

      When he's around 24, and now saved up $20K… he should continue to stay at home, and now look at long-term financials.
      I recommend he doesn't buy a house, and instead rents really cheaply. Living out of home should bring some things into perspective. Paying rent, all the utilities, food, furniture etc etc.. its a good exercise to learn the daily grind. He'll need at least $50K income by himself. And probably look at buying stock or investment house when he's got at least $60K saved up, and possibly a serious partner or family to fall back on.

      I think his target should be to comfortably buy a decent dwelling by the time he's 30, with some money on the side for things like emergency, wedding, honey moon, and kids.

      • bpop99 on 12/06/2017 - 08:57
        +5

        Didn't mean it to be a be all, end all advice - but something that would be generally be the recommended approach. I wish I had followed this when I was twenty, hence the caveat on bias. That said, you're right that some should be saved for long term gratification and some medium term. That is why I recommended the FD - this is for any situation in the medium term, whether to travel, buy property, etc. That's up to the OP to decide. In any case, he's definitely ahead of the curve in terms of financial savvy.

    • ozBFM on 13/06/2017 - 16:04

      This advice is spot on. NO idea why the negative votes.

      • bpop99 on 13/06/2017 - 22:35
        +1

        Thank you - i was a little miffed initially but i guess that's the nature of the internet and its users

    • 0031nek on 13/06/2017 - 20:06
      +1

      feel so sorry for you, typed such a long essay only to be negged..

      • bpop99 on 13/06/2017 - 22:32
        +1

        Was just telling my SO about this earlier today about my comment getting downvoted. Funny how the single-line comment above mine about saving being good got 8 upvotes.

        That said, I understand that humans are definitely not logical, and even more so in financial matters.

        On a more positive note - I wish I'd had the presence of mind at 22 to somehow start saving that much. Kudos on the OP for wanting to save that instead of blowing all that cash.

        • 0031nek on 13/06/2017 - 22:36

          sorry again that i forgot to upvote you just now after my comment. Here you go. Done now :)

        • bpop99 on 13/06/2017 - 22:38

          @0031nek:

          Thank you :)

        • 0031nek on 13/06/2017 - 22:43
          +1

          @bpop99: anytime mate :) honestly you made your point and those really helped me a lot all these years, point 1,2,3,4 and 5, and I didn't go for 6 and 7, although i wish i had. One more thing, i think i'll skip 6, this is because any interest earned from FD eventually will end up paying some portion to the ATO anyway. ps: can't thumbs up enough on point #1

  • Elwes on 12/06/2017 - 07:44

    The government has recently changed the laws around super so you can withdraw some to buy your first house (only money deposited from 1 July). Super accounts earn far more than high interest bank account but require less work than investing in shares.
    Leave $5k in a term deposit account and put $5k in a high interest account you can access. Talk to the payroll officer at work and start salary sacrificing ~20% of your salary into super. Count on whittling down the second $5k over the course of the next year or two. But you'll have put more than $5 into your super account and you'll only have paid 15% interest on it.

    • Elwes on 12/06/2017 - 07:45
      +1

      There's a faster way to put the money into your super account and the government is talking about allowing us to deduct post-tax voluntary contributions but I don't think that rule has come in yet.

      • bpop99 on 12/06/2017 - 09:02

        This is dangerous on many levels - firstly, super is meant for retirement and should be kept as such. Of course, if you're in Sydney or Melbourne, house prices steadily rising is now almost a given as long as the population and economic growth continues. But this may not be so elsewhere.

        Second, the issue of investments horizon - most super is invested in balanced funds and reported at market rates. Imagine the markets go down just before you decide to liquidate your super to pay for the deposit. Thats a loss there already.

        Lastly, depending on the OP's situation, if he thinks he will be ahead of the earning curve compared to average Australians, he would probably benefit more by leaving the voluntary contributions till he reaches higher pay brackets (given the now implemented lifetime limits on reduced-tax voluntary contributions).

        Of course, to note - this is generic advice only and the OP's situation may differ

        • Fobsessive on 15/06/2017 - 22:16

          What's the lifetime salary sacrifice limit now?

  • Elwes on 12/06/2017 - 07:52
    +14

    Until recently it was sometimes a good idea to pay off HECS, sometimes not. That's when they were giving a bonus 5-10% for early payment. That stopped ~6 months ago, so now it's definitely not worth it.
    The only time you want to pay off HECS is in the last financial year that you still have any left. Once you have that end in sight, pay the rest off in one hit before June. Because in June it gets indexed. After you've paid it off, tell your payroll officer (or if you forget, you'll just get it back in your return).
    This is the only time it's worth doing because your employer probably doesn't send your tax money to the ATO until 30 after June (ie for the whole financial year). So each year your debt goes up slightly just before you pay off another chunk.

    • bpop99 on 12/06/2017 - 09:04

      I concur

    • gwong on 12/06/2017 - 23:40
      +1

      Yes definitely not worth it. Any dollar you are considering using to pay off HELP debt with: just chuck it in any investment and it'll give you a better return (and with the added bonus that if you lose your job you stop paying the HELP debt).

      • bpop99 on 13/06/2017 - 22:43
        +1

        I have to say you'll never get cheaper debt in your lifetime!!!

  • djmm on 12/06/2017 - 07:59
    +6

    Get a boob job. It pays for itself.

    djmm on 12/06/2017 - 07:59 (Collapsed - Offtopic. Show)
    • bpop99 on 12/06/2017 - 09:07

      Do you have any empirical historical data to back this up? My bar is low, so if you say it worked for you, I can accept that.

      That said, I always imagined the OP being male - my bad.

    • PJC on 12/06/2017 - 10:38

      Not according to your profile avatar.

  • theHMASfriendship on 12/06/2017 - 08:12
    +32

    If you are a young ambitious person with a great international track record, you should make a post on Australia's foremost bargains website asking for help in securing a non-executive board position, citing skills such as coaching start ups and disrupting industries.

  • shangoz on 12/06/2017 - 08:39
    +4

    Looks like you live in Melbourne, Winter is coming, got to be very cold at night even daytime, to save some electricity bill, should build some virtual money mining hardware so you can heat up the house plus mine some coin for the future.

  • Heracles26 on 12/06/2017 - 10:22
    +4

    Go backpacking for as long as your money will last you!

  • doweyy on 12/06/2017 - 11:00

    Save while you can while you're at home but don't waste your youth saving all your money. Go out and adventure with bargains off here, you can have a really fun holiday for anywhere close to $1000 with some of the deals on travel. I'm going to be in a much similar situation as you soon and that's my outlook on life.

  • whooah1979 on 12/06/2017 - 11:31
    +2

    op, you should focus on you profession, network and try climbing the ranks as fast as possible. pay you debts, save the $10k and invest/term deposit until you have enough for a deposit for a property. you're after all a gen y/z.

  • AlienC on 12/06/2017 - 11:34

    Invest in yourself. Start a business. Pick a hobby and make money off of it. That or small returns in a safe investment bank or go on a holiday. If you like ultimate high risk watch the cryptocurrency "stock market". If you want something a bit more creative..Make a film write a book develop a game develop an app.

    I have heard some good things about the acorn investment app but yeah maybe do some more research before jumping into that.

    • Kill Joy on 12/06/2017 - 18:36

      Acorn is not for serious investors - it's just for newbies too introduce them to simply and easy investing.

      • AlienC on 12/06/2017 - 19:17

        Yeah sorry I talk a lot of sh*t. I should really have a flair to go with my username that says 50/50 chance that he doesn't know what he is talking about haha lol. Sorry lol.

  • LakeVostok on 12/06/2017 - 12:32
    +2

    Read up and follow the free, amazing sensible, down-to-earth financial advice from the Barefoot Investor

    https://barefootinvestor.com/blog/

    • redraoh on 12/06/2017 - 13:01
      +2

      Agree. Barefoot's advice to OP right now would be not to worry about HECS-HELP debt, and start saving for a home deposit.

      Save at least 20% of your income. If OP will buy within next few years, salary sacrifice that into super, and you can withdraw later for deposit. The difference is it'll be taxed less and you'll be able to take out so-called deemed earnings. Currently that's 4.78%.

      • Pizdets on 12/06/2017 - 15:21

        I must of read that wrong. You said 'salary sacrifice into super and you can withdraw that later on', like when he's 65?

        • doweyy on 12/06/2017 - 15:25
          +3

          They're referring to the new Government Super Saver for house deposits, salary sacrifice up to 15k each year up and 30k in total. Deemed growth rate is 4.78% and can be withdrawn on deposit for house.

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