So my wife and I are able to save average of $200k annually and would do it for another 5 years at least (Working our ass off until we have children). Have $200k already in savings and about $100k as a gift from parents. So would you invest into multiple properties by paying 20% or buy outright or buy one property at 20% deposit and invest rest into ETFs. Would love to hear your suggestions.
TIA.
What Would You Do with $200k Annual Savings?
Karansingh on 21/04/2021 - 02:10
Comments
Haha Yeah Probably.
Edit: i was half asleep when posting. Didnt realise how long post is
My dad used to say '…it's not how much you earn that makes you rich, it's how much you save…'
It's all relative in the end. My wife (before we got married) and i were on similar salaries and when we combined finances, I found she had more than ten times in saving than me.
However, I had assets to my name where she didnt. She could save a lot, but that's all she knew to do financially at the time. She's very…. thrifty…
She saw getting rich in the same light as my old school migrant parents, by saving every dollar. I see getting rich as making more money through various means.
My mother just the other day told me she saved $65,000 in the last year due to covid and some spending adjustments (which covid brought to light). However, she has next to no debt.
I raise the example of my mum's saving because after telling me how much she saved, her next move was to offer it to me because she doesn't know what to do with the money. She, like my dad, only know how to save (my parents are divorced).
She doesnt offer it to me as a free hand out, which if I did take as such, she probably wouldn't mind. But as an unsaid investment in that I take it to help her financially or later down the track. I can do with as i please, but she knows I'm not going to simply take it to buy a new car.
I'm the only child of 3 that actually cares for her finances and wants to strengthen it where my sister is a money leech and my brother just looks after his family only. So she gives it to me knowing that I'll manage it for her, and with understanding that if she needed it, it will be returned to her. Her balance with me is actually significantly more.
So a $100k saved each for this OP couple is not out of the realm of impossible. Possibly still at home or have family support. $100k from his parents is also (in my experience) plausible too - for all we readers know, it could be their life saving and only a one off, rather than an annual thing.
Where the OP, I think, is coping flak is because the original post is easily interpreted as a bragging post with minimal info on how they got the money etc, with the parents money sounding like a handout. It's not until the later replies to other posts does it come out that it's possibly a genuine situation.
My advice is, find someone in real life that has what you want, and then go learn from them. I'll never be able to learn how to invest or make money from my parents, I learnt that from a friend who has a Porsche and two Ferraris in his garage in his $7mil house. He achieved his wealth having been bankrupt at one point in life.
I did learn how to save from my wife.
Set goals on what you want to financially achieve, and then invest in yourself (knowledge) on how you're going to achieve it.
OzBargain is not an education school on how to get rich, which is possibly also why OP is getting flak. With this in context, I can see why the OP appeared as bragging
Well said. Original post was definitely lacking in detail.
Ironically, for someone that works 80 hours per week I'm surprised op had a full day to ask and field queries in this thread.
i think the OP was in the toilet when they replied.
got to make the most of every waking moment and multitask!time is money… literally…
Alright sir, now can we all learn from you the lessons your friend taught you?
There would be too many things to inform/share about.
One important lesson I did learn from my friend which I'll share - "Everyone has the capacity to be rich. The reason why people aren't achieving this is because they reach a place of comfort and stay there"
I've never experienced it, but what my friend learnt from being bankrupt was making money in smarter ways, and he kept on educating himself on how to get loads of it!
You are 26-27 yo so I guess your wife should be around your age???
If you really want to raise kids in the near future, you guys better put that into action now or the next couple of years, the sooner the better for your wife. You both may regret later if your wife can’t / or hard to conceive once she is pass 30. Her health may down grade significantly after the first and subsequent pregnancies. You may be able to keep on going like this but wife needs to gradually slow down and think about her health and future kids soon.Title should read “How’s this for a troll post?”
Make a youtube channel about how to save 200k a year. And then parley that following into a income stream.
Then do pranks like giving homeless person 1K
if you're really saving $200Kpa on pay rates from $30ph that's extraordinary to most of us
apart from going for the unencumbered home, if you (plan to) have kids, then suggest investigate discretionary family hybrid trusts or such before you go buying investment properties
once you've bought is too late to change the investment/tax structure - so check that out beforehand
also if you're a couple, consider the possibility of relationship breakup - in which case, joint tenancy (the survivor inherits all), or tenants-in-common (each can dispose their share as they wish) should be considered.
Single name on title maximises tax deductions for the highest earner, but that status can change over time
so suggest getting advice from advisors on trusts - but most of those showed me they knew less than I did, so maybe continue to ask here
What ever the outcome of this thread is x5
What to do with $40k?
https://www.ozbargain.com.au/node/618410
Wow. impressive. We earn about 160k combined, and only able to save around 40-50K a year.
You're most probably taking home 126k assuming you both earn 80k each.
That means you're spending 66-76k a year on living expenses netting you 40-50k savings.If you work twice as much and 1/2 your expenses, you could save 200k a year like the OP too.
I suspect we value our lifestyle compared to the OP.
The OP is also younger and does not have children so less living expenses.
The moral of the story is to work 70hrs/week @ $50/hr (with overtime etc), straight after you finish school, spend like a student, live at home with your parents if you can for 5 years and you'll have 500k in the bank. Then you need to find a partner who did exactly the same thing you did and you'll have a $1m between the pair.
$1m in an ETF with a 4% dividend yield is 40k a year, almost tax-free if split between the pair. (note 36k is the age pension for a couple)
i.e. you'll really want to have at least double this amount, meaning you might need to work for 10 years and you can retire in your early 30s.Oh Yes, I forgot the Tax. Silly me.
Yeah, we have a child so childcare and private health cost us quite a lot. then there is the mortgage. We like eating out at least once a month as a family. Then there's the Mother's days, Father's Days, birthdays, Christmas, etc.
Before the pandemic, we also used to go on overseas holidays at least once every 2-3 years (10-20K budget). I guess that's something in the past now. lol.Then there are car registrations, insurance, maintenance, etc which adds up to a few thousand dollars.
Aussie couple who turned $60,000 house deposit into $20 million property portfolio
— https://www.news.com.au/finance/money/investing/aussie-coupl…
Working in Macca’s and bar jobs, Scott and Mina O’Neill bought a house for $480,000. By the time they were 28, they’d retired.
I'm probably repeating some of the earlier advice but I would go to a professional (tax account and financial planner) and discuss your goals and mid term plans (kids).
That 200K might become 110K once the kids are around so what kind of life do you want then and for the 20+, 40+ periods. Right now you have the max flexibility to put in the 20+, 40+ plans in motion.
Look at a few things:
1. Minimise tax (not avoid it, but minimise it)
2. Investing in property, shares
3. Setting up yourself and wife as a business to take advantage of corporate rates and mechanisms (that's where you need that deep discussion with the accountant and financial planner)As for your health do take some time off (not just a youth thing). Your mental state does deteriorate when doing such long hours for extended periods of time (12 months straight).
You're doing well. Don't let the negativity wear you down too much, it exists everywhere. How you respond to it is what you can control.
Put $300K to GME. YOLO!
Definitely Bitcoin for long term, thank me in 10 years.
You are already way ahead of the game already. Not because of the wealth you have accumulated or your salaries, but because of your attitude.
The amount of clients my close friend (accountant) has that make a fortune and spend close to all of it on crap is crazy. He reckons only about 10% actually save their money and grow their wealth in a 'smart' way.
Which is why you become a 10%er, you do what others won't do. You sacrifice and save every penny you can. And with relatively modest careers as well is not easy.
There is one thing i would say to you though. Life is short. You can get hit by a bus tomorrow crossing a road. Don't forget to live your life.
I heard a quote a few years ago that always stuck with me, 'Death is more universal than life, everyone dies but not everyone truly lives'.
Work hard, save, accumulate but also spend on creating memories with your family as it grows. And you can always do that in an economic way of course too lol
PS: I really appreciate your line of work, seeing the struggles you guys face up close recently. Kudos to you for taking up such a meaningful role in our society.
Thankyou so much for ur advice. So meaningful
My wife, as a first-year nurse working 0.8 of a full-time load, used to regularly bring home more than I did as a 6th-year full-time teacher.
Classic humble brag posts, nice try though.
All the suggestions on housing…it really doesn't seem healthy, especially in something that should be more or less a human right (shelter, just like food, water or healthcare). Where does the money even go? To the previous owners who made money so you can sell it higher for later to next generations who want shelter? I didn't know as a country we had so much disposable income that doesn't seem to be being used very well. I mean I understand it's capitalism but I wouldn't make the same argument with other things like cars, comics or gold. At least with shares you're investing in a company who might grow, produce jobs, better products etc or at least doesn't impact those who are just trying to live a normal life where they can retire comfortably and not be worried about going homeless.
Wow never thought about houses this way!
I also think we're playing directly into their hands. Even though it is a 'free market' the government has set policies such as negative gearing, reducing tax on capital gains, irresponsible lending etc. to benefit the rich and politicians who own plenty of property. Who pays for them? Our children and future generations who have to saddle themselves with ridiculous amounts of debt to profit those who came before them. What good does this do for the economy, society, let alone the future.
Why do you think food, shelter, water and healthcare is a human right?
How will the food producers pay for their workers, bills, maintenance costs, etc? Will the food be rationed or do you propose that there should be an unlimited supply of food to be given out? If it is unlimited supply, where does this supply come from? The people that need more food than others, will they be given more food? The people that over eat to excess (gluttony), will that be permitted?
Your ideas of human rights is beyond ridiculous. If you knew anything about economics you'd realize that money doesn't grow on trees. Being alive isn't a human right. The universe doesn't care if you die today or next week. If survival is a human right, lets prevent all the natural disasters, prevent disorders, prevent suffering, prevent suicide, prevent everything. If you prevent everything that leads to death, human's wouldn't have free-will. Free-will allows for risk that can lead to death. Life is not guaranteed, being alive isn't a human right. People's life can just go in seconds; the universe doesn't care if about your ethnicity, sex, political class, job, status,etc.
Well…even with my lack of understanding of economics, I think countries that have prioritized them as human rights do better than countries that don't. Regarding food, I don't think there's a big issue…yet… technology has allowed us to produce vast quantities of food with minimal people. What's an issue is our food wastage.
If survival is a human right, lets prevent all the natural disasters, prevent disorders, prevent suffering, prevent suicide, prevent everything.
I think we try right? That's the idea of medicine, beyond blue, evacuations and buildings that are less prone to natural disasters.
Your ideas of human rights is beyond ridiculous. If you knew anything about economics you'd realize that money doesn't grow on trees.
Yeah I'm a mathematician, not an economist but I've seen some very serious arguments for UBI proposed by economist and I think the basis behind them is the same…people should be given the bare minimum to survive. Stop talking about the universe, we set our own meaning and values.
So we should destroy the environment to allow people to be fed? Should all people who are fat and tall be fed more or less than others? You didn't directly answer any of my questions. You do realize that technology has reduced the nutrition value of the food. Quality has reduced dramatically because the quantity keep increasing to meet up with the demand.
Healthcare - yep, lets go with your idea. Let's help all the fat people that don't care about their health, let the tax payers pay for their gastric bypass. Sound like a brilliant idea? (sigh), while we are on the topic, let's clog up the healthcare system with people who don't take accountability for their health problems e.g not washing their hand after going to the toilets, running in the 9degrees without proper clothing. I could spend hours discussing how profoundly dumb your argument is, but I want to spend my weekend doing house maintenance and researching bus conversion so that I can live sustainable. And help the environment. The things you propose will destroy the environment. Mother nature is already struggling with all the entitled humans around.
I used to like the idea of UBI, but trust me it isn't a better alternative to the one we have now.
Watch Ben Shapiro talk about UBI and you'll understand why UBI is a bad idea.@thelyrics: So you propose people starving then?
I'll try to address points 1 and 2. Point 1 leads to point 2, highly processed food leads to poor nutritional value and health. Why do people eat them then? Because they're cheap and addictive and a poor diet from a young age has been shown to have terrible health consequences both physically and mentally. That isn't to say healthy food can't be produced in a similar fashion or sustainably, for example, genetically modified foods like golden rice, eating bugs which consume far less land, water and co2 emissions compared to meat. Hence, we need planning, investments, and new technology. Not what this country has where everyone is obsessed about housing and getting ahead.Second, eating healthy is probably worse for the environment because of agriculture yet you don't want to compensate for this with healthcare? What you propose sounds like America where obesity rates are the highest, health premiums the most expensive and in general, spend MORE money than any other country with a universal health care system. Let's say obesity wasn't a problem then, would you support healthcare then? Or is it just bad luck someone developed cancer or diabetes and should have to choose between healthcare or food like so many cases in America? It seems what you're against is choices people make that damage their health i.e. smoking. This is why education is important and government regulations. Smoking has drastically reduced and there's no reason why we can't do the same with obesity, except, the country again is more obsessed with housing then providing good education for the general public.
Finally, I'm not saying build more housing, I don't think we have a housing supply crises seeing as so many are actually empty. I'm saying increase accessibility. Once people's basic needs are met, we can much more easily tackle issues like climate change and living stainably which I completely agree with. I advocate solar panels, public transport and limiting plane travel but I only see providing food, healthcare and shelter as positives. I don't see those who are starving caring for the environment as much as I see people who have their basic necessities met.
lol Ben Shapiro. I guess you don't like the either of centrelink either.
The universal declaration of human rights establishes shelter as a human right.
Australia has signed and ratified the International Covenant on Economic, Social and Cultural Rights. Article 11 of which recognizes the right to standard of living which includes the right to adequate food, clothing AND housing.
Nobody suggests these things need to be free for everyone, but they absolutely should be accessible to everyone regardless of wealth. Governments should have policies in place that ensure this remains the case, we still have policies to encourage price inflation despite housing becoming unaffordable for many.
Should animals have animal housing rights? Why don't we provide housing to all wild animals? Why is it only a human right? You do realize that it takes a lot of resources to build houses, it pollutes the environment and also destroys natural habitat. Do you think this is sustainable and can go for all eternity?
Tell me, what happens after earths resources run out? You do realize that earth has a finite amount of resource, we aren't eternal beings living in utopia/heaven. Sorry to say but egalitarianism is impossible on a finite plane of space and time.
I'm not informed about these policies but I do see flaws in them if you have quoted them properly. It sounds odd that a liberal government would propose such policies.
You say that nobody suggest these things need to be free for everyone but in the same sentence you wrote - "absolutely should be accessible to everyone regardless of wealth". Sorry, but to me that sounds confusing. Are you saying homeless people should get free accommodation? What is the incentive for homeless to look for work and make an income if they have unlimited free rent?
What is the point of saving for several years when I can just become homeless and have free accommodation until I pass away?@thelyrics: No one's talking about free housing, were more talking about a cultural shift and removing/adding regulations that avoids this idea of housing being an investment but rather just a place to live.
On the point of cultural shifts, yes we can live sustainably. It's been demonstrated that apartments and city's produce less co2 emissions per person than urban areas, but everyone here wants big houses and big land as perpetuated by the australian dream and what's seen as success in this country.
But with shares you're exposing yourself to risk and greed. It is not anyones responsibility to support companies. It IS their responsibility to put a roof over their families heads and if that means buying into a structurally inequal market that capitalism has created, then so be it. It is NOT up to the individual to solve these problems.
So you're saying buying housing isn't exposing yourself to risk? My point being is that what you do with shares, doesn't necessarily affect those who are just trying to live. Profit of the greed and those who play the game, not those who just want a place to live.
Are you saying share ownership isn't profiting from greed? My my.
@MessyG: No…I specifically said to profit off the greed, that's fine when a company grows and becomes more valuable. It's when your greed and the greed of politicians starts to infringe on other people's and societies wellbeing.
"At least with shares you're investing in a company who might grow, produce jobs, better products etc"
Something I have never really understood is how buying shares from someone else is somehow helping the company?
You didn't buy the shares directly from the company so that money didn't go to them, it went to the person you bought the shares from.
Only the very first share purchase would result in money going directly to the company.What am I missing here when people state buying shares is somehow investing in the company?
How does the price I get paid/or pay result in a company (who didn't get my money) that "might grow, produce jobs, better products etc"At least with property I can see how it directly benefits people who need/want to rent a property. I just don't understand the direct link with shares.
Yeah you're right, maybe there isn't a direct link. My point being, it doesn't affect the little guy who's just trying to earn a living, feed himself, and put a roof over his head.
There's been studies that show the policies that lead to increase housing prices hasn't actually reduced rent.
After reading this post I'm clearly overworked and underpaid as a teacher working 60 hours a week! About time I got over my needle phobia, blood, excrement and vomit issues so I can retrain to be a nurse.
Yet another humble brag post
Do you feel better about yourself? Are you rock hard right now?Yes really pumped up now. Thanks for ur concern.
You earn more than a doctor.
Nope my wife and I both are saving
A friend of mine a GP that i know only earn 120k to 150k gross income. He must be lazy.
Rural GPs earn close to half a million
@DBBROS: Dunno how accurate that is. Rural Australia is struggling to attract doctors. Surely half a million bucks on average would see a lot of interest.
@RolandWaites: Not average. I used to work in a rural facility and the experienced GPs are paid a lot especially if they are oncall. They used to attract a lot of locums as well.
How much a person earns does not equate to how much a person saves.
a janitor on 50k a year could save 20k and save more than any doctor/dentist who spends all their money.people who earn more tend to spend more… the OP is spending like a student!
I wish I could turn back time and not have expense creep.They're putting in the hours too. Most doctors once qualified in their field don't work full time plus overtime and weekends. Some do. They earn a lot. But the majority don't because they've had enough but if they wanted to they could. These two clever RNs are thrashing themselves now so they don't have to later. I guarantee you they're picking up penalty shifts left right and centre - shifts that pay a lot because they're crazy busy and traumatic.
What I’d do is irrelevant. What should you do is what you’re asking.. and nobody here can answer that for you.
If you want an opinion, try looking through whirlpool. Lots of big IT salaries and similar questions. Otherwise figure it out for yourself. And don’t post your salary information publicly because you’re asking for trouble. Silly boy.
I think OP it would help if you broke down how you made that in your original post and how you manage to save so much, which would remove much animosity about your post and a fair bit of the hate.
Yeah thats true but why do I need to disclose all that information. I have asked a question and for providing the answer to that, How I managed to save or whether the money is irrelevant and insulting.
Because you are asking for financial advice, to provide effective advice the planner / OzB random needs to know your current situation and your goals. If that 200k was from running a business, the advice provided could be a lot different, if the 200k was from a from some initial of investment, the advice different again, the fact that you have no/low expenses makes a difference. Planner takes into account your financial literacy or time constraints.
If you want advice not designed specifically for your situation (as is the case with some of suggestions) that's fine but some people are trying to help but you make it extremely difficult.
Imagine you're a triage nurse and someone comes in with illness and wants help, when you start asking questions so you can assist them better, they get all defensive and tell you they came in for answers and treatment, why should it matter how they got the way they are. You have to make decisions based on that lack of information, whilst certain outcomes may be positive it might not be the most ideal outcome for the patient.
Mate they are literally questioning my professionalism and blaming me for selling meds to junkies. Would you be happy to be blamed?
@Karansingh: It's a free public forum, there's a huge range of people with a huge range of answers… you'll get that kind of response from people who don't understand your situation. Yes I've started threads where people straight away don't believe you, learn to ignore it.
blaming me for selling meds to junkie
Pretty sure this was a joke
Only way you'll get effective advice without needing to understand which is the best option is an accountant + planner.
The better option is to increase your financial literacy so you can understand which is the best option for yourself. Start with https://passiveinvestingaustralia.com/
@Kallavan14: I'd argue that people on the Internet need to not get so emotional about what other people earn to the point they get so wound up they pull out the hate…
@MessyG: Sure but that's inevitable on the internet. If you can shut yourself out from all that, then you're winning over them already
@Kallavan14: I disagree, it means people can spread hate with impunity. Everyone has the right to greet unbridled emotional with unbridled emotion.
@MessyG: I think expecting unbridled emotions is too much of an ideal in an open forum. You can't control the way people react and behave, but you can control your own behaviour and reaction or response.
It could be choosing not to engage or to attempt to communicate another point of view or opinion.
This thread has gone completely off the rails, but it's so entertaining. Yes, it has drawn out a few directly hateful comments, but I'd say there's a lot more skepticism and concern, rather than hate.
You've asked some quite extensive information yourself, though out of the 200 answers you're getting, only 1 will be helpful, if at all.
So you're asking for help, and don't want to give anything back? Sounds pretty tightarse to be honest.
Your post could go like this:
I make $167k a year, of which after tax it is $100k.
We're very thrifty, live with parents and manage to spend only $20k a year on personal expenses.It's not really all that information and you've asked this on one of the most public forums in Australia short of whirlpool.
People aren't questioning your professionalism, people are initially calling you out for making a troll post, which a lot of people do, especially since your figures don't add up. This is why you're getting so much flak. Perhaps remove the animosity, and then you'll start getting good investment advice from a forum where people come to buy shit they don't need.
I mentioned the figures that I manage to save and even made clear that I am not lying or joking. But still people were like this is bullshit. If they think it is bullshit then just laugh and ignore.
It was just repeatedly trying to prove that I genuinely save that amount.@Karansingh: @Gallifr3y makes a good point. Framing your situation allows people to understand your current financial situation better and you'll receive more genuine advice and responses.
I also work in healthcare. Most people in average jobs, earning average wage won't save $200k combined. I still don't know if that's been averaged over two years or annually.
So people are genuinely interested in the math and how someone saves so much in a year.
I'm terms of lifestyle - working 70-80 a week will have significant impact your health too.
Health is wealth, it's important to look after yourself with basics such as exercising, sleeping and eating well, finding time for friends and family. Otherwise you might end up spending all that money to fix related heath issues later down the track.
Just saying, many older hard working people would like to tell themselves in thier 20s to be able to build a life around career.
I hope you make some good investment choices too. I'd put money in property. That's all I got. :)
@Karansingh: You should ask the question on Whirlpool finance forums, people on there save like 1M a year so 200k won't get questioned.
my wife is a nurse, it's very hard to get a 150k a year, even you do weekend shifts. so don't believe with this guy that he can save a 200k a year lol. even they earn 200k both they cant because of the tax and cost of living. even you do a math..
how much does your wife earn? Is she the breadwinner in your household?
I suspect your wife does not work 70hrs a week across two jobs as the OP has said he and his wife are doing.
if 38hrs/week @ $40/hr
32hrs/week @ 60/hr (assuming x1.5 time overtime rate)
= $50/hr70hrs/week x $50/hr = 3500/week = 182k annual salary.
I think the maths does add up…I think we all need to get a second job or get our other half to work harder :)
Yes thanks
There's a lot of money to be made if you're an RN currently, it just depends on what your clinical experience is and where you work.
I love how this entire thread is not believe OP saves 200k a year, rather than give a single answer/recommendation to his original question.
The jealous/tall poppy syndrome responses here are hilarious. What a bunch of sad sacks you lot are saying "I don't believe you wah wah wah [insert dumb tax equation to prove my investigative bs]". Did the post force some of you to look in the mirror a little too long and you didn't like what you saw?
Who cares if OP is lying? If you think it's a dumb post then give a dumb response and move on. Did OP ask for advice on how to spend their time and how to live their life? If he wants to work 2 full time jobs then so be it. Obviously the sacrifice made isn't for everybody and that kind of work ethic should be applauded. To find a partner that also shares the same work ethic is a feat in itself. Yet people are thinking OP's relationship or life is going to crumble at some point just cos they can't imagine making that sacrifice themselves.
It's totally believable that 2 full time jobs earning 80-100k each nets you a gross amount sufficient to maintain that level of savings. Working that much means that you literally don't have time to blow any money. If both you and your partner have the same work ethic then it's also believable that you've agreed to spend the bare minimum required. Could I do it? Hell no. But more power to those who can.
OP an alternative to the responses regarding ETF's is you could start researching now into dividend stocks which offer a stable(ish) store of value and start dollar cost averaging your way into them, working your way up to a minimum investment of $500k. $500k @ 5% yield is 25k passive income, not including the additional benefit of franking credits against your high income.
Thanks for understanding🙂.
My plan to get into ETFs was because of the 'put n forget' factor. I will surely diversify but when will have more time on hand.
Really appreciate ur reply. Cheers!How much did OP pay you to type that post?
Just calling it how I see it haha
it's a tried and proven approach however may not neccessarily be the most suitable for OP at his/her life stage - given any income is taxed at 45% i would prioritise growth over income - ie. buy house over apartments, growth stocks, bitcoin etc. diversify and watch your savings grow
Not gonna lie, I'm finding the shock and hate around how much RNs can earn very entertaining as is the misconception that they are cleaners of human effluent.
agreed, i wonder how many of those outraged would consider their own job a worthier pursuit
i'm guessing you live at home with a parent/s so that you have near 0 expense for utilities etc? even with both wages combined and the amount of overtime you both do, to save 200k a year is ridiculous unless you are both getting paid at least 110-120k after tax in your hand!
What is your living condition?
If you are able to save that much i would just buy a investment house, two to three townhouses without corporate fees would be a good return and it will only go up.
@KarasinghNope I rent although the rent is low.
Smart Move working asses off before you have kids. Depending on the Market in your area if it's still good for buying I'd invest in more than 1 if you are looking to buy soon so you can take advantage of low interest rates over the next few years.
Dont delay having kids too much even with Indian Geneology its hard to have them after 32.
Would agree with you on that, plus another thing is you may plan to have kids but it isn't always guaranteed either. Personally for us it took over 2yrs of trying to get our first child. Things are just more harder once ya hit 30+.
Can someone suggest him how to invest instead of scrutinizing his income level and income earning capacity? lol
Invest/speculate your savings on bitcoin/altcoins/shitcoins. No dramas if you lose a bit of coin, ya saving 200k/yr anyway - reevaluate after 12months.
YOLO FTW
Post it on ozbargain so everyone can see how awesome I am?
Buy the loudest Harley Davidson I could find for extra attention?
Is this even possible? Next to no expenses and no HECS?
I would suggest buy a house you can live for few years or longer. keep in mind proximity to schools and transport.
The most expensive thing is weekly rent / mortgage. Buy a house with very little mortgage.Didn't read what others have said but I would buy a house to live in with 20% deposit. Interest rates are low, so I wouldn't buy outright atm. Set aside 6m living expenses in cash as a safety buffer. Invest the rest in 90% ETF and 10% BTC. Job done. Thank me in 20 years.
Invest in Only fans or high yield bmw
Good on ya, OP. You managed to save 200K annually.
What would you do with that sum of money? To me, this has to start your goal first and risk profile.
Once you work this out then it's much easier to put your money in. Definitely when factoring in your current low expenses, upcoming family planning and job conditions, if that's sustainable for next 5 years and more, that's spot on to reach 1mio+ saving. Assuming that you also manage well your wellbeing.As you are still under 30s, I would say to determine first your goal in short, medium and long term plan, from there as many has already mentioned about the investment tools such as IP, Shares/Crytos, ETF etc. You pick the investment whatever that suit you from timing and skill perspective.
Property:
You may need to work out if you even wanna buy your PPOR instead of renting unless you are happy with your current condition. No outright purchase.
Buying multiple properties require lots of commitment and time - I can't imagine you would have enough time for this?
To me - No, I wouldn't do that.If you don't need to spend/use that saving in next 5 years then I would say to put them into shares/ETF and or reassess them every year if required.
Go and talk to the Financial advisor really to nail down to the action points as you begin to start being serious on this. Everyone needs is different and there is no rules that fit for ones.
*** Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice.
Have you doubting folks not seen instagram ? Dressing up, working out any high level achievement takes a lot of effort and anyone doing that kind of hard work seeks validation, that is human nature and nothing wrong with that. And as for OP, dude the only thing certain in life is change, you are very young but in a profession that will not go out of fashion so you will always have a job but may not always have the same ability to save this much. 300k is not really a lot of money to even start thinking about retirement in your 20s..and that is what all the jealous folks forgot :-D .. Now having said that .. If you ask anyone including a financial advisor they will tell you either what benefits them or what has worked for them in the past. I am not sure you can keep up what you and your mrs have been doing and I congratulate you on that ..it is an achievement ..but thats 2 years of your life ..It will change .. so diversify your investment vehicles but take risks since you are young.
You have saving nailed down now you need to get investment nailed down , shares need work and you do not have time, real estate needs money and you do not have much ..not enough to make money, ETFs are a good bet but will not earn you much.. so at this stage I would say buy yourself a house and focus on paying it off asap , put all your money in an offset account ..all 300k minus what you pay for the security, get a credit card make sure it is set to auto debit the whole outstanding amount from your offset account at the end of every month and make sure you pay everything from that credit card .. that kiddo is your best option .. having said that do not get into the habit of curtailing your wants for money..I have relatives who own 6 houses in Melbourne and 3 kids, drive an 18 year old corolla wagon, husband worked in a factory wife in ozzy post but the saving bug became a habit so now the kids have 3 houses the old couple still have the corolla and 3 houses they do not know what to do with it.. So while I congratulate you do not let it get to your head.. you have a lifetime ahead and times change
Yeah thanks for your suggestion. I love the idea of an offset account. Haha and I won't earn just for my kids. Plan is to retire bit early and then don't ever have the need to think twice before buying anything.
You have done very well kid, getting rich is not always a silver spoon in your mouth, ignore the people who cannot do what you do and have an opinion but remember money is pointless unless you enjoy it.. Well to be honest I think you looked at your bank balance and wanted to share your joy because all your hardwork is wasted if no one appreciates it and nothing wrong with that either mate .. well done.. keep it up and you may just turn into a "lucky bastard"
getting rich is not always a silver spoon in your mouth
33% of OPs wealth is literally from a silver spoon
That's not my wealth. Basically even if the amount has been gifted to me that will be uses towards an investment in which my dad will have basically same ownership. So whatever I own, It's my parent's too
I think what @MS Paint is pointing out is that you have family who can help contribute to your financial portfolio. It's not solely your own earnings.
Not everyone is fortunate to have family who can contribute significant amounts of money to assist with investing. It certainly helps. Just an observation, not a criticism :)
For the doubters. My mum worked as a lowly enrolled nurse for many years and now owns half a dozen properties, and to this day, she still works as a cleaner, despite having the freedom to retire. And she did that all on her own, as a single mother raising three kids, with no support from anyone really, except for a few family friends who would occasionally mind us kids while she was working shifts back to back. Of course, she had to work 90+ hours per week to achieve that, which took a toll on the family, for sure, but I'm actually proud of how hard she worked. Not that I condone putting money before all else, but to be fair, if she really was/is a workaholic, then it probably couldn't be helped anyway. Dunno, I'm not a psychologist.
So, working like a dog simply won't work for the majority of people. I think you have to be raised a certain way to become like that. But for someone who is that way inclined - it's totally doable.
Oh comeon don't post bs online just to get praise and feel better about yourself and your mother. Comeon mate!. (Most of the people here)
I'm not looking for praise. It doesn't do anything for me really. I have no reason to fabricate anything.
That's a very narrow-minded statement. I'd say everyone else apart from Australians.
Asians, Americans, Europeans, Latinos work hard… Not everyone has the luxury of Job Keeper and other benefits from the government from they one… I'm not saying it's the right thing to do or that's a healthy behaviour, and I'm not saying government benefits are bad either.
His plan is to work hard for 5 years or so, and after that he will have some decent savings and will be able to relax, or have children if he doesn't want to relax.