What to Do with My Savings?

Asydney1990 on 15/10/2018 - 19:00

Hello everyone.

This topic may seem cliche or a topic that must get financial personalized advice but I'm throwing it up anyway.
I will not be taking any advice and committing to what people say on here but would like to get peoples thoughts.

I'm 28 working in a job that pays a salary, i currently live at home with parents and don't pay board.
I barely have many expenses prob around $700 a month, I've always been very bad with my savings but recently have worked on saving my money, I'm sitting at around 8k since Jan that's also taking in account that I've paid all debts off this year also I'm wondering what the safest but most efficient way to make compounding interest or interest in general.

Don't really want to put it in a term deposit just in case I may need to access in an emergency.

Financial

Comments

  • Doggiie on 15/10/2018 - 19:05
    +3

    With such little savings, I'd suggest just a high interest saving account. See this and choose your own flavour.

    Once you get your savings under control, then you can consider other OzBargain inspired investment ideas.

    • altomic on 15/10/2018 - 19:18
      +1

      Eneloops

  • bluesky on 15/10/2018 - 19:10
    +2

    If safest is a criterion, probably bank savings. If you dont want to tie up money in term deposit, just pick a high interest on-call type account. Have a look at this poll for ideas. Just note the conditions that need to be satisfied to get the maximum interest. Since the poll began, there has been some small changes, in rates etc.

  • Seraphin7 on 15/10/2018 - 19:10

    Here's the very basic advice … are you planning on using the money for any purpose over the next five years? If yes, drop it into a high interest online savings account and keep adding to it. If no, consider investing 50/50 in an Australian and International equity fund and keep adding to it.

  • brentl on 15/10/2018 - 19:15
    +2

    High yield investment?

  • beerpara on 15/10/2018 - 19:28
    -7

    28 and living with your parents rent free? I think you should use your money to move out.

    • 87percent on 15/10/2018 - 19:41
      +7

      Or pay rent to your parents! I hope you're at least chipping in for bills/groceries!!

      • Randxyz123 on 15/10/2018 - 20:58
        +6

        Why? Some parents would rather their kid put their money in a savings account for a house (or a holiday or their dream car etc) OR what a number of my mates do, pay their parents "rent" but in actual fact it is into a high-interest account that they can use for a deposit and not be able to take money out.

        Have you seen how much it is to move out? Why on earth would you in this situation? It would mean you are just paying someone else's mortgage.

    • voo123 on 16/10/2018 - 00:20

      It depends on each person's intentions when living with parents. If you have full time job, able to save wisely, then spending a few years rent free with parents can be a great way to save up that house deposit fast. Sounds like a good strategy.

      The other option is living with parents to 'save' up money. Then spending the savings on unnecessary things and lavish holidays, resulting on zero net savings, defeating the purpose of staying with parents.

      Ultimately, once you have a full time job, consider living with parents as a privilege, and aim to knuckle down for a few years to make the most of genorosity offered.

  • [Deactivated] on 15/10/2018 - 19:32

    Buy for example $10,000 Westpac/BOQ/or even AMP at Selfwealth.
    You'll get divs > 10% p/a (incl. franking) starting next month instant ~5%.
    Compounding interest for the future, this is a good time to buy and pretty safe investment for cash.
    I'm dumping the lot into bluechip stocks at 5800 ASX, as bank interest is not doing it for me.

    Akternatively, can you maybe buy the folks something special?

    • orangetrain on 26/10/2018 - 18:04

      About that AMP pick, down 26% over past week.

      • [Deactivated] on 27/10/2018 - 01:11

        I didn't buy AMP,
        I bought NAB, WESTPAC, BOQ, and a little TLS.
        I should get about 10.5% interest p/a for life from this, which is as secure an investment as I need. (Donald will keep us safe)

        Bank's 2.9% ain't good enough.
        AMP decline seems based quite superficially, divs will likely continue, see https://uk.webfg.com/equity/AMP_Limited, divs 2019 forecast is higher.

        I've lost 3%ish at mo, but will get it back in div in the next two weeks.

        No idea how to do better. Thanks for comment O.

  • Godric on 15/10/2018 - 19:46
    +1

    Save more

  • bobbified on 15/10/2018 - 21:47
    +2

    Some people have no money. Others have money but don't know what to do with it.

    What a world we live in!

    • vishalpandi97 on 15/10/2018 - 21:56

      Yea i agree i just guess some spend too much and some save too much lol

  • PAOK11 on 16/10/2018 - 00:18

    put it on black

  • azndraon on 16/10/2018 - 00:42

    HISA for now, just so you have something to begin with. When you have a decent amount, then start researching into other things like shares and etfs, or even look at properties. Have enough for your monthly spending, and then just chuck the rest into savings. Rams offers 2.8% for purely saving, ubank does 2.87% with a transaction + savings account, but yeah have a look around yourself for options that suit you

  • [Deactivated] on 16/10/2018 - 01:40

    What do your girlfriends say when you bring them back home?

    • ShannonN on 16/10/2018 - 13:40

      Say hi to his mum and dad and say I won't need brekkie it will be over in 20 mins LOL

  • shortgum on 16/10/2018 - 18:37
    -3

    sport/racing arbitrage. free money

  • Asydney1990 on 16/10/2018 - 19:32
    +1

    Thank you to all your replies, i think i will just keep it safe and keep it in a high interest savings, ive opted to use Police bank as they have a very attractive deal at the moment

  • nuwanwanasinghe on 26/10/2018 - 17:01
    +1

    First, think what you gonna do in the next three to five years. If you are planning to buy your own house or an investment property, better to keep the money in a good saving account and pumping more money into it.

    When it comes down to it, you need to think what you gonna do in the future, because unexpected things can happen at anytime.

    Cheers!

  • [Deactivated] on 27/10/2018 - 01:36
    -1

    Buy stocks when everyone's selling.

    After US midterms and rates hikes. Brexit woes. Pseudo war in many countries, Trade wars, environmental concerns and so much more… … Including media becoming powerless in my view.

    I reckon by Feb the hysterics might ease, just opinion, and stocks rise.

    So buying for example NAB, WESTPAQ, BOQ stocka will pay just over 10% currently.

    I bought TLS, and considered AMP for potential longterm price rise on top of divs.

    Good luck Ozbargainers ;-)

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