Everyone on Ozbargain wants to save money, but I’m curious to know what you are saving for? Surely its not to save just for the sake of saving? Perhaps it’s to buy a house? holidays? kids education? retirement? For us it’s pretty boring - pay off our massive mortgage of $700k to achieve financial freedom of having all our pay to spend on what we want (after paying school fees).
What Are You Saving for?
pandabear on 25/08/2018 - 08:35
Last edited 25/08/2018 - 08:36
Last edited 25/08/2018 - 08:36
Comments
We all have to go through that stage to grow up. Better to do it in your early 20's with a 30k car than later on in life with a 200k car when you are making 150k pa.
It was stupid but I don't regret it.
Bought my house 3 years back, now wifey finds her commute to Macquarie Park workplace tiring. We live in Blacktown.
Now again slogging, sorry saving to buy another property and try and move a bit closer to her workplace.
I can relate, I go against the traffic driving from east to west for work and I laugh at the traffic that is going against me lol
It's even more worst during home time aswell
May be wait till north west line opens - she can drive to any of new stations and take train to Macquarie park from there
Leave wife, save more… Plus other benefits
thanks. i'll take this suggestion
My wife travels from Dural to Blacktown every day and she never complains even though the traffic is bad, especially on sunnyholt road. Tell her it's going to get even worse when they shut down the train line down for 7-8 months in that area. It will be a nightmare.
Finishing paying off our own house and then paying down investment properties. Would like to maybe upgrade our own house but it seems daunting to take on another large mortgage once you own your own home.
Would like to buy some shares and put some more into super as well.
I also love cars and taking the family on a holiday once a year so some of it goes towards those things for enjoyment.
Unexpected poverty
I save as much as I can every day with every purchase decision I make so I do not need to ever work again. I'm in my early 40's, haven't worked for more than 10 years and have no intention of ever returning to the workplace.
If many millions of pensioners can survive on the Age Pension of $1,368.20 per fortnight (couples rate) then I don't see why I can't as well.
Living on savings?
Living on savings/investments…yes.
I do have a Low Income Health Care card which enables discounts on many things.
You've certainly saved and invested well mysterytal.
You only live once and I guess it comes down to where your priorities are e.g. time with family and friends, life experiences, wealth accumulation or material possessions.
Mine are the two first ones.
Who knows what will happen in the future, our PM when he was the treasurer says Australians should no longer expect to receive age pension when they retire as it is not sustainable.
Is is sustainable, if you introduce a land tax, an inheritanace tax, and/or make the rich pay more tax. The problem is the government has been lowering taxes on the rich for the past 20 years, resulting in a massive deficit after the mining boom ended. In Australia, we need a politician like Bernie Sanders or Jeremy Corbyn, not rich, elitist capitalist shills like Bill Shorten and Di Natale.
Australians already pay a significant amount in land tax and there is no surer way than to ensure your populations become slave labour than to make them pay through the nose for property they have already purchased. Think about what is required to "free yourself" from being a slave to the system: some land, a house, a vegetable garden, some fruit trees, some chickens.
Some of us do not want to be forced to work 40+ hours per week or our children to be forced to do so in an unsustainable system.
If property taxes & inheritance are low a family can pass property to children, work part-time and work on things that meet their interests. Being neither a burden to the welfare system or any other person but also not being required to spend their whole life in service of others.Raising property taxes and inheritance taxes removes the ability for the middle class to ever accumulate wealth or live independently as described above. In effect it forces the bottom 95% of the population to never-ending drone worker status. The top 5% are able to shift capital (and if necessary themselves) out of any inheritance or land tax jurisdiction and either avoid paying from the get go, or over earn so much from their assets that inheritance & land taxes do not effect their continued lifestyle & independence.
You have been brainwashed by the elite to beg for something that benefits the bottom 10% at the expense of the middle 85% whilst leaving the top 5% untouched.
Communism/socialism has not resulted in an increase in welfare for the median citizen anywhere in the world it has been enacted.Northern Europe is not socialist, and did not become wealthy under socialism. It became wealthy under capitalism and is slowly eroding wealth under a more socialistic (but still capitalist) regime. Poorer states that opted for socialist policies stayed poor whilst those that more fully embraced capitalism (Ireland, Singapore, Korea..) became rich. Thailand vs Burma is a good example of how differing paths result in different outcomes fo the citizens.
Bernie Sanders is also worth millions of dollars (last reported ANNUAL income was over $1m), and Corbyn is not poor (worth about $4m).
Yes the rich should pay for everyone’s retirement because, well… they’re rich.. or some other reason ..
Lots of people don't want to pay taxes, it seems.
Yet they want the things taxes bring.My kids don't want to eat their vegetables, yet they want their dessert.
We can have a discussion about a suitable level of taxation and an adequate level of services, but to flatly reject a type of tax isn't helpful to that discussion.
@mskeggs: No one here posted about there being no taxation. This question is whether it should be raised or lowered, particularly around inheritance & land tax.
Land tax is already quite high as is overall taxation (over 50% of middle class income when indirect taxes added). Make it higher, or add an inheritance tax on top and you are removing entirely the ability for average families to hold property & pass it on whilst living independently of (effectively) being slave labour.
Freedom is worth way more than additional gold plated government waste in service delivery.
High taxation societies lose the ability to tax the highest incomes (because they are off-shored), lose the ability to gain a positive tax balance from the lowest and middle earners (as they collect the benefits of what is raised) and nearly the entire burden is thrust upon the middle/upper middle.
This destroys the incentive for the lower classes to raise themselves up to middle levels, destroys the ability of middle classes to save money (as what they could save is now paid in tax & distributed to lower classes), and the richest are absent.
With incentives destroyed increasing numbers do not 'put in' and strive as much as they did before, necessitating an increasing rate of tax on those who are, but then this further pushes them into not striving themselves.
It is a negative loop of increasing taxation & reducing effort. Precisely what has played out in every socialist society to date, and the descent that can be seen in left-leaning American states, & priorly homogenous and striving workforces in Europe today. It is precisely what you do not want to do to a taxation system if you value freedom, or future prosperity for the nation. Only the very rich escape its death cycle. The poorest 10% do a tiny bit better than they did before, the middle 85% do much worse and the top 5% are unaffected. In Australia today we would fare much better by massively restricting government waste, which would allow a tax cut. We have about as high a taxing regime as you can have without slipping firmly into the cycle I've described above.
Incentive destruction currently in Australia as a result of taxation & welfare (most families are unaware of this):
Dad works part time (earns $25k, family has two kids, wife not working).. after tax income after welfare transfers $55k
Dad works full-time (earns $125k, has a HELP debt, family has two kids, wife not working).. after tax income after welfare transfers $75k.That is, the father works much harder, earns 5 times the income, an extra $100k, and at the end of the day only pockets $20k more. (And also has the added cost of fuel, loses discounts off public transport for the family etc).
Labor, Greens supporters & socialists will tell you this is fantastic and the "rich" guy earning $125k (but only keeping $75k) should pay even more so the guy netting $55k (only working 10 hours a week & earning $25k of his $55k himself) can get a better deal. It is rubbish, it is legalised theft and represents medium term the complete hollowing out & impoverishment of society.
@lghulm:
Lot's of unsubstantiated claims. I'm not at all sure I agree that higher taxing social democracies in Europe are in their death throes as you assume. My suggestion is it is the red states in much of the USA that are the ones in financial and economic dire straits.
I'd even suggest that the very wealthy desire very much to live in high tax places like Sydney, London, Paris, Stockholm, San Francisco, Zurich etc. rather than Somalia (I will accept Monaco and Singapore prove me wrong).In any case, considering land and inheritance taxes is very worthwhile, and should not be ignored.
Inheritance and land taxes are levied on the accumulation of wealth as you point out. At the moment, a highly indebted graduate doctor pays more tax each year than a retiree living in a $10m house in Vaucluse (almost certainly!). To me it seems there should be a better balance.Ruling out considering land and inheritance taxes is a free kick to the wealthy and very wealthy.
Would you consider an inheritance tax that had a $100m threshold? Surely that would protect the middle class?
And land tax is currently primarily levied on transactions (state stamp duty), making it costly to change housing as your needs change (as you form a family, or age, for example).
While this does target people acquiring property - so reasonably able to pay tax, it would be more efficient to tax every land owner a bit commensurate with their land value. This means if you own land worth $10m that has not left the family for generations you would still pay some tax, while first home buyers would avoid the lump sum duties they currently face.Tax policy is hard, and full of trade offs, but needs to be viewed with an open mind toward fairness. Of course, fairness means different things to different people.
@mskeggs: I bet you have zero experience with high net worth individuals & business.
The point is that the ridiculous level you set for inheritance taxes: $100m would raise $ZERO from anybody that meets that threshold as they will re-arrange their affairs so that it is not subject to the tax: e.g. parlay the property off into a commercial vehicle, inside a trust that "rents" the property to the family or some other arrangement.
And at what point do you feel you have the right to take from another person? Either by vote or physical deed?
You make the example of a retiree in Vaucluse, & say, well why shouldn't the family be deprived of a family asset that may have been owned by the family for 100 years? You'll put up the tax, and if they can't afford it well they can be deprived of it and moved into more modest premises. But you'll criticise a bank that does the same to a modest family (hypocrite) and two wrongs do not make a right.
There are other ways to add more equality to the taxation system, taxing capital gains at a similar value to income earned for example. An even better avenue exists to tax financial transactions or look at the money creation activities of private banks and how modest interventions here can finance the government and address inequality.
We could also turn off the tap on immigration which turbocharges the value of capital holders whilst reducing real incomes for everyone else. >>> so many better solutions than high taxation & asset stripping your citizens - whatever their level of income.
Society does not owe anybody equality of outcome or starting point, nor positive outcomes for people that do not help themselves.
A good society is one where good people, that do not give up, and who consistently work hard, get the fruits of life: an education, a house & some land, a job, a family, healthcare, and get to pass some of what they earned onto their children.
That is the society we have. The ONLY people (excluding the disabled) that fail to achieve this in the society we have, have themselves to blame. They took on too much debt, stopped applying for jobs, spent too much, drank too much, smoked too much, ate too much, didn't study hard, got in trouble with the law etc etc.
When a migrant can come to this country, without speaking any English, and without even graduating from primary school, and finish their life with all I list above, from their own labour, we should have no problem at all with the level of inequality in society (and certainly shouldn't add to it with over taxation). Let the rich have a nice house for gods sake, if the peasants can earn their castles too.
[Here you will want to believe I am not acquainted with people doing it tough, but I know so many people from all walks of life that have made it just by doing, not sitting, and being somewhat modest with their financial decisions & expenditure.]
Last point: your last message implies we do not have a land tax only stamp duty. This is totally false. There are explicit land taxes in every state (with usually the family home exempted) and EVERY property is subject to council rates. Council rates are a land tax buddy and add up to thousands for every household.
I know a few bushies that don't get on with society, that just want to live on their land up in the mountains and grow their own food, and trade for a few things each year on minimum income. Why shouldn't they be allowed that? Heavens if we can't have that then we are all slaves. Higher rates (land taxes) prevents entirely an independent lifestyle of this type. No-one should vote for that kind of tyranny.. only socialists do.
Wow.. how? 😳 Did you win a lottery? Or were you an investment banker?
Put simply…I don't waste money.
As I am sure mysterytal will agree, the biggest enemy is lifestyle inflation.
When you need to own a book instead of using the library, eat take away instead of cooking, drive yourself instead of public transport, have a private hospital room instead of medicare.This requires you to prioritise not working over goodies. Judging by the number of iphone sales, the vast bulk prioritise goodies.
Personally, I am not interested in "retiring" in the sense my Dad or Grandfather did, a day when they no longer worked and sat around looking for stuff to do and bothering the wife. I just want control over the circumstances of my work, so I can control the needle on how hard I work and when in exchange for more or less income.
I already have lots and lots of unpaid things to do, and would like more time, so I am working towards lowering my expenses further to allow for that. The personal balance to get there is harder for some than others.
So much wisdom. Appreciate it. There used to be a saying, "You will never miss something you have never had". But, it has become obsolete these days.
I don't really save. Anything extra just goes to the mortgage I guess.
I would still count paying extra into the mortgage as saving…
yeah i guess so, unstructured saving :D
Tesla model 3
2020 for performance model. Still have time to save…
FIRE(Financial Independence Retire Early)
Retiring at 54 - T minus 10 and counting!
I like to look at the numbers grow, it’s kind of like a game. I don’t use any money (10% of my income to sustain my lifestyle) and really have no desire to spend as well.
10%? you either make a lot of money or eat bread 3x a day
Must be living rent free
As in. Something like 70% life expenses, 10% lifestyle and rest to savings??? Or do you mean that 90% of your income is disposable?
To pay off all the bikies.
Meh
Buy a larger house next year as we live in a townhouse 1.5 hours commute from the Sydney CBD each day and is driving us crazy 4 years on…
Larger family home make some kids and be closer to the north rail link
saving to go to Mars!
I honestly have no idea… Buying a house is so far out of reach now, i'm really just aimlessly saving for no real reason.
I'm highly considering talking to my employer about going from 5 to 4 days a week so I can at least find time to spend some of my savings.
a big wedding :)
I'm still shocked anyone spends on weddings these days.
Agreed, it seems like a terrible use of money, and really it is just trying to impress your friends. We had a modest wedding (still probably $20,000) but it was subsidized by each of our parents.
To be honest, one of the best weddings I ever went to was a surprise wedding in a paddock, arranged on the false premise of a house warming party. Basically heaps of people. Bonfire. BBQ. DJ. Drinks. No one had dressed up, because they were not expecting to. Great time.
"The future, Mr. Gittes! The future."
I'm saving for my next hi-res portable music player. Not much savings after making monthly mortgage repayments on a large loan, bills, grocery shopping and raising two boys.
my funeral
More shares.
Tesla Model 3 :/
Good thing they're not starting right-hand drive manufacturing until mid-2019…
2019 Ford Mustang GT
Boring
Retirement
Honeymoon, a house and a new offset BBQ.
To reach a level where I don't have to wait for a sale to buy an Item.
To reach a level, where I could stay home playing all the games in my backlog and watch all TV shows in my wish list.
To reach a level, where I could spend time at home making things that will never make a single dime but bring me happiness.
But, the sad part, I already know that I'll be over them by the time I achieve it.My first house
The nvidia graphics card after the 20xx series
Saving to not be poor. I'm not poor, but I never want to be either.
A Kidney and then maybe a liver.
Global domination.
Not here to save but to buy items at a price I feel is justifiable. I wouldn't pay normal asking price, rather go without, so save less by being here.
My mate passed away on Saturday, 33 years of age from MND. Make sure you don't scrimp too much on life.. it's too short.
Sorry for your loss
Thanks. Was a bit of a hit. He deteriorated fast in the past few weeks, at the rate he was going before then I thought he still had a few years left.
Buyout Ozbargain from scotty…then shut it down (evil laugh)
Gerry? Is that you?
So I have enough money to start a real political party for the people, not the clowns at the Canberra right now……………
Pay off the mortgage on our home, then I will probably do something boring like just buy another property to rent it out, even though the real me just wants to get a mustang convertible, but the adult me won't allow it.
Considering buying into a business using my redraw, but probably makes more sense to take a loan on that as it is not that much, but I haven't convinced myself I want to keep doing the same thing for the next 20 years.
If I was going to treat myself realistically, I'd buy some old car and do it up as a project with a friend, but again the adult me says no.
Ahhh the lure of cars. I have this problem also but I must resist. Take up fishing its relatively cheap & great fun 👍
I feel the pain on cars. We bought investment properties, boring but hopefully will put us in a good position in the future.
I’d like to buy a high yield $80k investment vehicle - Audi RS3 sedan. But the adult me keeps telling me no. :(
I considered a motorbike (dirt bike) as an affordable fun activity, but it is modestly dangerous unfortunately (even though I believe I am a sensible person).
Everyone else I know rides expensive push bikes, which has almost no appeal for me as a man with a build of a rugby player.
Early retirement.
Saving for an investment property in every state then Vegas,hookers & cocaine.
That my friend is a great idea. Your comment just gave me a great idea to try achieve the same!!!
I’ll tackle QLD first near the beach somewhere
VIC south Yarra apartment
Adelaide - not sure where
Perth - not sure
Canberra - some apartment
NT - might skip this one
Have worked in the NT for nearly 2 years….. It grows on you. Don't write it off.
Currently saving for motorcycle number 3 and the rest in savings for a house deposit or any other fires that need putting out.
have you got time to ride them?
individually?
can you ride them at the same time for improved efficiency?
dirt or road?
or maybe a trike sidecar with the second bike on the rear seat and the third next to you?
I'd been saving for a few years with no goal in mind. I am now back at university full time so I guess what I was actually saving for was beer with my classmates and instant noodles haha.
tbh until now and for a few months still it will have been just to survive and ocassionally treat myself to something nice……OzB helps with both of these goals….hopefully after uni I can save up to get some financial independence and worry anout saving for less pressing things like a high yield investment vehicle (lol).
Like every other young adult… a property. I wouldn't consider myself to be a huge tight arse tho. Sure, I'm frugal when it comes to certain things like packing my own lunch for work, not splurging on luxury items etc but at the end of the day I'm still fairly young and would want to travel as much as I can while I'm still able to. I still manage to save a decent amount whilst going away once a year as my break from work.
My savings are currently going into the prerequisite carport for getting a new dream car and going into protecting my new car through film and ceramic coating.
What is this dream car you speak of?
I am saving just because everyone is saving. I do not even know the reason behind it yet.
Please let me know if you have any.
nothing wrong with having a pool of cash ready to use.
If these USB C cables keep popping up, ozbargain is gonna keep costing me money(especially when I don't have a phone that supports USB C yet.)
However saving to buy a business, got 8 weeks to pull in another 50k from somewhere after selling the house and collector car :'(
what is usb c cables mean
What buisness are you buying?
If it isn't rude if I AskLiquor store. About to pour my life into it.
Damn, is the income very good?
@Lockster: Been in the Liquor industry for around 8 years. Despite what a lot of people say there's money in it. The numbers tell me I'm all good. But time will tell. If all goes to plan I'm back to where I am now + own the business in 3 years…
Or I've made the worst decision of my life and I'm screwed.
Good luck Soluble. I'm against drinking alcohol and liquor in general but wish you success mate.
Keep the poor folks at OzB aware & offer discounts if you make it ;).
Merc CLA45 AMG (used) don't want to get a loan 3/4 of the way there!
Capital to start a business.
Still young so I'm saving up to travel after uni/during uni breaks. After that I will save to retire asap.
@idonotknowwhy:
idon'tknowwhyyoudidn'ttravelmoreinyouryouth